Petroleo Brasiliero S.A. (Petrobras) PBR – Options Update
We called for a potential dip-and-rip play on PBR Calls yesterday, after following the contracts to gains exceeding 200% on Monday-Tuesday’s spike to .64. We did see the dip back down to the .30-range, and the subsequent rip came too, as the $16 Weeklies we’ve tracked from a low of .20 hit the 300% mark at .80 yesterday.
If you recall Tuesday’s report, we said: “Should PBR approach the 16.35-level, we would then have to consider moving up our strike price.” PBR did indeed test and break that price target (HOD 16.76) during yesterday’s session, and as a result the $16.50 Calls went on a romp from a low of .18 to .46, an impressive single session move of 155%
We hope our meticulous and spot-on forecasting of the PBR Options chain this week has at the very least, illustrated why we like to cover options just as well as stocks. As you can plainly see, the chances for quick gains are plentiful under the right conditions, as evidenced by the exponential profits offered to us by this play, time and time again.
Even as the talking heads saw fit to downgrade PBR earlier this year, we’ve stuck with it as it was coming off of ten-year lows back in March at 11.25, and brought continuous coverage as the stock has bulled its way up to more than $17. This will definitely go down as one of the brightest spots in 2014, a year that has thus far been extremely good to us.
Med-Cannabis Pharma, Inc. MCPI
We mentioned that MCPI might see some momentum carryover from Tuesday’s session in yesterday morning’s report, and that’s just what we saw. The stock would make an intraday move of 25% from .4375-.5475.
.Monday’s initial alert on MCPI gave folks a chance to grab MCPI as low as .355, from which yesterday’s high marked an increase of 54%
It’s also given us a chance to get our feet wet within the slowly-forming Washington State-based cannabis industry. We’ll have our eyes peeled for others that are sure to pop up as the state makes its transition away from prohibition.
Added Note:
World Wrestling Entertainment, Inc. WWE
Just to throw in a new options trading idea as we approach the end of the week, we’re going to be monitoring the WWE 09/20 $15 Calls, which closed at .50 yesterday.
Extended Watchlist:
HZNP, LIME, MCP, SAAS, SSYS, DDD