Continued Options Success
We kept pounding the table on SPY options to kick off the week yesterday morning, following some of the largest single-session moves we’ve ever witnessed came to the contracts we were tracking on Friday. The Weekly $191.50-193 Calls served up the chance at earth-shattering intraday gains ranging from 5966-26000% and while our ideas for yesterday obviously didn’t produce figures like those, the potential gains were still exceptional in and of themselves.
Based on the premarket activity mixed with our own expectations of how market activity would unfold, we specifically targeted the SPY Weekly $194-197 Calls and were very pleased with the ensuing action in every set contracts:
$194 Calls – Daily Range: 3.12-5.07 – Max Gain: 63%
$194.50 Calls – Daily Range: 2.91-4.57 – Max Gain: 57%
$195 Calls – Daily Range: 2.42-4.15 – Max Gain: 71%
$195.50 Calls – Daily Range: 2.19-3.77. – Max Gain: 72%
$196 Calls – Daily Range: 1.90-3.35 – Max Gain: 76%
$196.50 Calls – Daily Range: 1.59-2.95 – Max Gain: 86%
$197 Calls – Daily Range: 1.33-2.60 – Max Gain: 95%
The markets have now seen five consecutive days of a strong rally, so we’d expect to see a brief consolidation and course correction. In that event, we’ll look for the SPY to hold support in the $195-range in order for us to remain interested in the above-mentioned weekly contracts.
Lululemon Athletica, Inc. LULU
The last time we formulated an options-trading idea for LULU was roughly a year ago, and at that time we caught a single-session move of over 400%. We want to revisit this play again today; this time, with a longer-term idea. The stock itself is attempting to record a sustained rise off of recent lows, and the chart appears to be ripening toward that eventuality.
The idea that we’re going to submit accordingly is going to be the LULU November 6th $53 Calls (Last Trade 1.25) It’s quite feasible that we could see a return on the chart to the $56-range by the expiration date. That would push those contracts three dollars into the money, and would likely produce double-bag gains, so we’re going to place them on an extended watch.
Extended Watchlist:
AGTK, PUGE, PPCH, PMCS, EXEL, GNK