Yahoo, Inc. YHOO – Options
After an impressive run of tracking multiple winning stock plays in recent sessions, we got back to some options-trading ideas with YHOO yesterday morning and were quite pleased with the result.
YHOO was gapping up early on speculation of a possible sale of its core web business, and we were looking for a way to take advantage of the hustle and bustle. Our signaled range was the YHOO Weekly $34-35.50 Calls and big intraday returns in each set of contracts were there for the taking:
$34 Calls – Trading Range: .97-2.36 – Max Gain: 143%
$34.50 Calls – Trading Range: .64-1.91 – Max Gain: 198%
$35 Calls – Trading Range: .40-1.45 – Max Gain: 263%
$35.50 Calls – Trading Range: .30-1.10 – Max Gain: 266%
It’s worthwhile to mention that big gains were also possible at higher strike prices, and it became apparent very early on. We mentioned this in our chatroom*, and members had the chance at up to 120% gains as the $36 Calls ran from .36-80.
CD International, Enterprises, Inc. CDII
CDII was among a group of plays that we put on our radars at the beginning of the short holiday week that have been jumping off of the page with big gains this week. One of our valued chatroom* participants, DJ, reminded everyone yesterday prior to the opening bell that there was activity in CDII (snapshot below) and everyone had to hold onto their hats from there!
What ensued was a monster run from .0019 to .07, which represents an unreal 3584% intraday romp. The news contained the announcement of a $350M purchase order, and traders went wild trying to soak up shares in what ultimately amounted to a dream-scenario.
We’ll be very interested to continue to track the stock moving forward. After its epic run it pulled back considerably into the close and is currently gapping once again in the premarket to the .035 area. We’ll continue to be interested provided it can hold a minimum of .03 as support once things get going this morning. Ideally we’d like to see the stock break through .04 once again and maintain that as a new level of support.
*We encourage anyone who’d like to get involved with our traders chats, simply send a Skype contact request to username ‘stocksumo’. We’d be happy to let any of our faithful readers get in on the fun!
Tautachrome, Inc. TTCM
We tagged TTCM for observation in yesterday’s extended watchlist, and the stock went on to carve out a solid 30% run from .03 to .039. It pulled back only slightly into the close at .035, and did so on roughly twice the monthly average volume. It also marked the second day of higher recorded highs and lows for the stock, so we’ll continue to track TTCM provided it can sustain that trend.
Extended Watchlist:
NPWZ, NERG, BBRD, CBNT. PBMD,