Voltari Corp. VLTC
VLTC is a stock we’ve been tracking since early this spring. The increased stake of billionaire activist investor Carl Icahn caused a frenzy at that time and led to the stock being one of our more successful calls to date in 2015.
Since the last time we were talking about it, VLTC has been under a general consolidation and caused us to turn our attention back with a momentous session yesterday. The stock produced a nice intraday run from a low of 6.24, and cracked through its 50DMA at 7.06 en route to a 8.33 high.
We’ll look for VLTC to maintain support at or above that 50DMA in order to retain our immediate interest, but for the long -term, we’re interested to see how the company’s recently announced shift in focus from mobile marketing to commercial real estate development will affect the stock in the future.
Diodes, Inc. DIOD
We’re seeing an interesting set of events unfold with DIOD, as it has been announced that the company will be acquiring another publicly-traded entity, (Pericom Semiconductor Corp. PSEM) in a transaction that will reportedly result in immediate accretion of PSEM’s added value to DIOD’s earnings per share.
It raises an interesting situation with a stock that is now coming off of a recent relative low, and as a result we’re going to formulate an extended-term options idea with the DIOD 10/16 $20 Calls.
We’ll want to see DIOD hold above 21.69 (50DMA), and test key resistance around $23. If it can manage to do so, those contracts should present us with the opportunity to reap tidy profits.
Potential Options Idea:
Today’s jobs numbers could render the Fed more likely to raise interest rates sooner than expected, which would put some fear into the markets and cause another dip. This morning’s premarket activity seems to suggest that’s what’s happening. In which case, we’ll want to be standing at the ready with a corresponding options idea.
If things unfold as expected we could see some big opportunities for quick-strike intraday gains in the UVXY Weekly $73-78 Calls.