Last week we were continuously tracking TRIP options, and that led to several opportunities for multi-bag profits. In addition to a slew of weekly contracts, we repeatedly mentioned our longer-term interest in the 10/30 $85 Calls.
They did manage to generate substantial gains on Wednesday, to the tune of a 120% intraday swing, and Friday’s move was also rather respectable. From a daily low of .93, the 10/30 $85’s made their way to as much as 1.40, which registers as a 51% pop.
We’re anxious to see how this morning’s news of a big extension of TRIP’s partnership with the world’s largest hotel company will be received by the community at large; these contracts could be in line for even further gains, so we’re going to leave them on our radar for the time being.
PARSIPPANY, N.J. and NEEDHAM, Mass., Oct. 19, 2015 (GLOBE NEWSWIRE) — Building on a longstanding relationship, Wyndham Hotel Group, the world’s largest hotel company, and TripAdvisor, the world’s largest travel site*, today announced they have extended their partnership to add the hotel group’s inventory to the TripAdvisor instant booking platform. >> FULL PR
National Energy Services, Inc. NESV
We placed NESV on our extended watchlist on Wednesday as a bottom-watch play, and it too finished the week with strength. After ultimately finding support on Thursday morning at a PPS low of .02, NESV enjoyed two straight sessions of bullish activity as it pushed its way into Friday’s close at a new high of .034; a two-session increase of 70%
Moving forward, we’ll be looking for the stock to continue logging higher highs and higher lows to establish a sustained rebound pattern.
Weight Watchers International, Inc. WTW – Fresh Options Idea
One of the bigger storylines heading into this week will assuredly be the huge spike in WTW stock after an early morning announcement today revealed that Oprah Winfrey will be taking up a 10% stake in the company and joining the board. As a result, the stock has exploded in the premarket, running from the $8 range up past $13.
Whenever a knee-jerk reaction from the investment community causes this type of dramatic rise, especially when no material changes have occurred in the involved company, we always take notice. In cases such as this, it is extremely common for the rapid rise to draw profit-takers out of the woodwork, and therefore we’re going to be watching for a classic dip-and-rip.
Our initial target contracts are going to be the WTW 11/20 $10-13 Calls, which should be in line to perform quite well if the action unfolds as we suspect it may. This is going to be a very interesting play to track as we kick off this new trading week.
Extended Watchlist:
GRLD, ILST, EQLB, STSC, BCCI