Gilead Sciences, Inc. GILD
& Chipotle Mexican Grill, Inc. CMG – Options Ideas
We see potential opportunities in the options arena this mid-week, from a couple of stocks that we’re catching on the heels of their earnings calls. Despite earnings beats for both, each stock has actually fallen.
Gilead Sciences, Inc. GILD – Despite exceptional 2014 earnings, investors read between the lines on a number of other key aspects following last nights call, and as a result the stock is taking a bit of a beating. This morning’s premarket low stands at 90.60. That will be the price-point we’ll need to monitor to determine an options trading strategy. Should GILD sustain a recovery off of these lows, we’ll be looking at in-the-money Calls, most likely at the $97 and $98 levels. In the event that the stock begins to find new lows we’d need to flip our strategy to Put side of the fence.
Chipotle Mexican Grill, Inc. CMG – Here we have a similar situation, with CMG taking a beating in today’s premarket, having hit a low of $675. Like GILD, earnings expectations were exceeded, however shortcomings in sales and other key metrics has momentarily taken the wind out of CMG’s sails. This is another situation where we need to monitor the stock to ensure it doesn’t fall below the premarket low in order to secure our interest in playing the Calls. We’d obviously need to look at Puts if CMG were to backslide any further, but barring that occurrence, were going to be looking at Calls in the $675-$680 range.
Inergetics, Inc. NRTI
NRTI serves as a reminder of why it’s always a good idea to check our blog at Blue Horseshoe Stocks each morning even if you’ve consumed our report via email or elsewhere. The contents of our daily-updated Stock Tracker may or may not be included in that day’s report, and often those stocks we add at the last minute go on to provide big opportunities.
That was the case with NRTI yesterday; we placed it on the tracklist just minutes prior to the opening bell, and the stock made one heck of a move. From a low of .0115, it went on to touch a daily high of .02, marking a healthy intraday move of 74% on just over three times the 30-day average volume.
Extended Watchlist:
AAPT, BABB, DIS, GPRO(Earnings Tomorrow Post-Market)