Tesla Motors, Inc. TSLA – Options
On Friday we mentioned some longer-term options-trading ideas for TSLA Calls, and it didn’t take more than a couple trading days for them to bear fruit.
As our regular readers are aware by now, we often like to monitor an entire range of strike prices following a key development, and TSLA’s earnings release last midweek provided the fuel for our success in this case. We pointed to 05/22 $230-240 Calls, and every set of contracts in that range made a sizable run from their lows on Friday to impressive highs during yesterday’s session. Here’s a breakdown of their performances:
$230 Calls – Friday’s Low: 6.85 – Yesterday’s High: 13.50 (Closed: 10.30) – Max Gain: 97%
$232.50 Calls – Friday’s Low: 5.32 – Yesterday’s High: 11.25 (Closed: 8.65) – Max Gain: 111%
$235 Calls – Friday’s Low: 5.96 – Yesterday’s High: 10.60 (Closed: 8.70) – Max Gain: 78%
$237.50 Calls – Friday’s Low: 3.16 – Yesterday’s High: 7.60 (Closed: 5.00) – Max Gain: 140%
$240 Calls – Friday’s Low: 3.84 – Yesterday’s High: 7.50 (Closed: 5.75) – Max Gain: 95%
We are pleased with the progress we’ve seen thus far in these contracts, and we’re interested to see what the next nine trading days will bring leading up to their expiration.
Viggle, Inc. VGGL
Our next order of business this morning is to point out the solid move made by VGGL after we included the stock in yesterday morning’s extended watchlist. Catalyzed by favorable quarterly results (link below), it traded in a range from 3.00 to 4.24; a very respectable intraday move of 41%.
The spike came on roughly 25X the 3-month average volume and VGGL managed to close in the mid-3.70’s, holding the majority of its daily gains. Whenever we see a confluence of these two phenomena, we always want to keep our eyes peeled for a carryover of momentum into subsequent sessions.
Plug Power, Inc. PLUG
Our longer-term subscribers might remember the epic run we tracked in PLUG when we caught the stock coming off its all-time lows near a dime back in 2013. The lowest price we observed following our initiation of coverage on this play was .135 on 02/28/13. It led us on a long and exciting journey to a high of 11.72 nearly a year later, and from then on has held a spot on our list of all-time best calls.
More recently, in 2015, PLUG has been on an overall downtrend that carried the stock to new annual low of 2.32. Yesterday, we observed PLUG coming up off of those lows and hitting a high of 2.65, so we’re going to re-radar this as a potential recovery play. If it can crack through the 50DMA of 2.66, we could be in line to see a more sustained uptrend.
We’ve illustrated the key resistance points on the following chart snapshot:
THLD, OCN, SPPI, INO, FRO