Pepsi had a solid across the board beat following its premarket earnings release yesterday, and we seized opportunity to include the PEP Weekly $124-125 Calls in our morning report.
A five-dollar intraday run by the stock allowed for some very nice opportunities to profit in our pair of targets. The $124 Calls ran from .72-3.40 for a big 372% rip, while the $125′s traded from .32 to 2.45; a gain of 666%
Verb Technology, Inc. VERB
This stock is a newcomer to the NASDAQ, having only recently uplisted from the OTCQB, which has been the subject of a selloff over the past six weeks. That was kicked into another gear earlier this month when the company announced that its move to the NASDAQ would be accompanied by a $20M offering at roughly half the market price at the time.
Now that it has fallen well below the offering price, and indicators are suggesting a rebound may be in order, we are going to flag this play for observation in the days and weeks ahead.
FRESH OPTIONS IDEAS
United Rentals Inc. URI Weekly $134-136 Calls
Union Pacific Corp. UNP $167.50-175 Calls
Our first order of business this morning is to mention the performance of JMIA after we included in yesterday’s premarket report on our extended watchlist.
This relatively new play doesn’t even have an options chain as yet, but the move made by the stock itself, especially for something in this price range, was really impressive. JMIA ran from a low of 33.10 on up to 43.50 during yesterday’s session, marking an impressive intraday rise of 31% As of this morning in the premarket, that high has risen to 50.60, and pushing our observed gain to a super solid 53%
FRESH OPTIONS IDEAS
Netflix, Inc. NFLX – Although the company downplayed its Q2 guidance in yesterday’s post-market release, NFLX still showed strong growth for the quarter, and looks to be in line for a solid finish to this four-day trading week which wraps up tomorrow in advance of Good Friday. Wre will look to possibly take advantage of the NFLX Weekly $365-375 Calls.
PepsiCo, Inc. PEP - Pepsi was among those companies reporting their quarterly earnings this morning in the premarket, and we’d like to formulate an idea there as well after the company posted a Q1 beat on profits and revs. We’re going to track the PEP Weekly $124-125 Calls into tomorrow’s close.
As we near the midway point of this holiday-shortened week, we are going to be taking a look at a fresh earnings related options idea with UnitedHealth.
The company just posted an impressive across-the-board earnings beat, while the chart itself was already in a prime bottom-bounce position. We are going to track the UNH Weekly $232.50-237.50 Calls, which should be in very good shape if events play out as expected.
Fastenal, Inc. FAST
We also signaled the FAST 04/18 $62.50-67.50 Calls, last Thursday following the company’s own earnings beat. The moves we’ve observed since then have been moderate, but still impressive nonetheless.
$62.50 Calls – Range: 5.40-7.10 – Max Gain: 31% $65 Calls – Range: 2.40-4.80 – Max Gain: 100% $67.50 Calls – Range: 1.10-2.43 – Max Gain: 121%
If you check our report from Friday morning, you’ll see that we highlighted a couple of sets of weekly options ideas, and we’d like to kick off this short trading week with a review of the total possible gains which were available for anyone who caught our alerts.
SPDR S&P500 ETF (SPY) -Expecting to see some reasonably bullish activity based off of the conditions we observed on Friday in the premarket, we decided to make our go-to move of signaling some short-term SPY ideas. Out of that group, the Weekly $289 Calls were the most attractive play. Those traded up from a low of .55-1.54, for total possible gains of up to 180%
The Walt Disney Co. DIS – We caught DIS gapping up on our morning scan Friday, and it was cruising in the premarket. It turned into a classic gap-and-go for us as our ideas, the Weekly $122-125 Calls, which all soared.
$122 Calls – Range: 4.40-10.25 – Max Gain: 133% $123 Calls – Range: 3.75-7.59 – Max Gain: 102% $124 Calls – Range: 2.53-6.60 – Max Gain: 161% $125 Calls – Range: 1.68-6.01 – Max Gain: 258%
Our fresh options ideas for yesterday morning was regarding Fastenal,which had just posted a solid Q1 earnings beat. The potential targets that we highlighted were the FAST 04/18 $62.50-67.50 Calls, and we’re happy to report that the stock’s activity has allowed us to see some decent moves out of those so far, with five sessions remaining until their expiration.
The moves was observed yesterday were as follows:
$50 Calls – Range: 5.40-6.50 – Max Gain: 20% $52.50 Calls – Range: 2.40-4.30 – Max Gain: 79% $55 Calls – Range: 1.10-2.08 – Max Gain: 89%
With the markets heating up here in the premarket, we’ll want to continue to keep an eye on FAST for the possibility of further useful activity that could propel these contracts to more gains before their expiration next Thursday.
FRESH OPTIONS IDEAS:
The Walt Disney Co. DIS Weekly $122-125 Calls
SPDR S&P500 ETF (SPY) Weekly $289-290 Calls
*Don’t trade weekly options on a Friday unless you’re an advanced level trader with disposable funds!