Blue Horseshoe Stocks: SBUX Options & More

OPTIONS RECAP

Yesterday was a day for options, with a whole calendar full of earnings reports, and we formulated a couple of fresh ideas in LUV and MKC, going bullish and bearish, respectively. Both sets of contracts produced really good opportunities for intraday gains.

Southwest Airlines Co.

LUV Weekly $52-54 Calls

$52 Calls
 – Range: 1.25-2.63 – Max Gain: 110%
$52.50 Calls – Range: .99-1.90 – Max Gain: 92%
$53 Calls – Range: .56-1.85 – Max Gain: 230%
$53.50 Calls – Range: .40-1.25 – Max Gain: 213%
$54 Calls – Range: .20-1.00 – Max Gain: 400%

McCormick & Co. Inc.
MKC 02/15 $125 & $120 Puts
$125 Puts – Range: 3.11-5.51 – Max Gain: 77%
$120 Puts – Range: 1.51-1.91 – Max Gain: 26%
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FRESH IDEAS:
SBUX Weekly $66-67.50 Calls*
WDC Weekly $43.50-45 Calls*

*Please do not attempt to trade weekly options on a Friday unless you an advanced level trader with disposable funds.


Briggs & Stratton Corp. BGG

We want to close things out this week by commenting on Briggs & Stratton’s gap down to its lowest PPS since the the early 1990’s. While it may see more short term losses first, we still want to radar this as a bottom-watch play.


Extended Watchlist:
DBVT, AYTU, MRIN, TTNP, PIR, CAPR, ACHV