Mobile Broadcasting Holding, Inc. MBHC
Our regulars will remember our coverage of MBHC from last month, We put the stock on our radars beginning on July 20th and tracked it to a really nice initial run from .0041-.0096 (+134%). Since then the stock consolidated a bit, and for the past few weeks, has been trading in a relatively narrow channel from around .0045-.0065, holding support off of its 50DMA the whole way.
At the time of our active coverage of MBHC, we were looking forward to the launch of the company’s mobile, real-time video broadcasting platform, known as the Whirld app. BETA testing has been underway, and this morning, we’ve received another update on the tentative date of the official launch, so we thought it would be a good time to begin monitoring the stock again.
When we find a play that’s capable of making double-bag gains in as rapid a fashion as MBHC did last month, we definitely want to keep our ears to the tracks. The new expected date of launch we can infer from this morning’s PR will be two weeks from this Friday. >> READ PR
Deere & Co. DE
Our options idea for DE worked like a charm on Friday. Subdued Q4 guidance and a 40% drop in profits led us to track the action in the DE $87-84 Puts. It wouldn’t have mattered which strike price traders chose to exercise, chances for monster gains were available across the board in every set of contracts in our target range. Here’s a breakdown of the possibilities:
$84 Puts - Daily Range: .30-.1.25 – Max Gain: 316%
$84.50 Puts - Daily Range: .44-2.08 – Max Gain: 372%
$85 Puts - Daily Range: .37-3.05 – Max Gain: 724%
$85.50 Puts - Daily Range: .87-2.38 – Max Gain: 174%
$86 Puts - Daily Range: .75-3.64 – Max Gain: 385%
$86.50 Puts - Daily Range: 1.15-4.01 – Max Gain: 249%
The stock is gapping down heavily this morning, so we’ll continue to watch Put contracts in the DE options chain with strike prices close to the money. In the event of a continued PPS decline, we could still see some good opportunities on the bearish side of the fence.
CYPW, CRGP (Momentum Plays From Last Week)
Options: SPY(In-the-Money Puts), UVXY(Calls)