Options Ideas
With stocks characteristically lagging a bit as we head into the holiday break, and figuring to do so until the turn of the new year, we’re going to zero in on a couple of potential options plays.
Celgene Corp. CELG
CELG is gapping up into the $120-range this morning, and we will be interested in tracking its activity as things open up today with untraded-upon news of a significant nature. The company achieved a favorable outcome on a long-standing patent dispute which was announced yesterday post-market (View PR).
We will be looking for a possible dip-and-rip scenario, and will want to see the 50DMA of 115.03 hold as support on any pullbacks. Provided it can manage that, we will look to the CELG Weekly* $116-120 Calls for the possibility of some intraday flip opportunities.
*We must remind everyone that Weekly options contracts for this week will expire upon tomorrow’s 1PM Eastern market close.
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Spirit Airlines, Inc. SAVE
SAVE is currently striking us as a potential extended-term swing-trade candidate. Despite already having experienced a sharp uptrend at the beginning of this month to rebound off of its annual lows, the stock is still trading at roughly half of its 52-week high. The possibility of a protracted recovery is very real, in our opinion.
SAVE January 15th $40 & 45 Calls are going to be the contracts that we will be placing on watch this morning, and for the next few weeks.
Additionally, as we’ve pointed out on the chart below, there is a significant gap from roughly $45-49. The filling of this gap would undoubtedly produce serious gains in the aforementioned options.
Swift Energy Co. SWYW
Speaking of large chart gaps, we’ve noticed one on SFYW, which has managed to rebound after falling off a cliff a couple of sessions back. We’ve identified the gap on the following snapshot:
We’ll go ahead and put SFYW on our radars over the next several sessions; a return to pre-gap PPS levels would spell a double-bagger from the current price.
Extended Watchlist:
NXGA, TALK, BLTA, LTNC, KWBT