Fresh Options Ideas
We’ve formulated a few new angles of approach with respect to options ideas that we’re going to share this morning, each with its own specific reason for appearing attractive at the present time.
United Parcel Service, Inc. UPS
We’re going to be taking a look at a range of medium-term UPS contracts, namely the April 8th $104 Calls, which we feel have a good chance at performing well in coming weeks on account of a number of factors.
The shipping sector as a whole is currently doing well due to boosted online sales, as top competitor FedEx’s reported earnings yesterday certainly reflected. We also like the look of the UPS chart from a technical perspective, as the following annotations demonstrate:
We also learned this week that the company is going to be increasing the size of its CNG (compressed natural gas) powered fleet, including an infrastructure build-out of several new CNG stations to support it. (>> VIEW PR)
SeaWorld Entertainment, Inc. SEAS
We also are going to be monitoring a range of Seaworld options, once again due to a fresh news release, as well as an attractive chart setup. As you can see on the provided snapshot, SEAS is showing a multiple bottom formation, and if it can continue to rebound off of its recent relative lows, appears to have a shot at a nice rebound over the next few weeks if history is any indicator.
We’re going to be watching the SEAS April 15th $18 Calls, which last traded at .16. If SEAS can rebound to the upper $19 range by that expiration date, the gains on these contracts could realistically approach ten-bagger territory.
SeaWorld, which has been under fire for years over their Killer Whale shows, has just announced that it will immediately cease its orca breeding programs, beginning a phase-out of the theatrical dog-and-pony-style performances and shift toward more natural displays. (>>View PR)
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Bonus Idea:
Watch PBR 5.00 an 5.50 Weekly Calls for potential day/swing trade opportunities)
Extended Watchlist:
MLCG, SRCO, SDOC, SIPC, CLF, KEG