Options Updates
The Michaels Companies, Inc. MIK – One of our fresh ideas for yesterday morning’s premarket report was a post-earnings target of the MIK 04/18 $12.50 Calls combined with a solid technical setup as a bottom-bounce play.
The stock turned in a very solid performance on the day, coming up just shy of its 50DMA, and that produced a significant gain opportunity for the contract set we designated. The $12.50 Calls traded up of a low of .60, and hit 1.35, marking an intraday run of 125% We’ll want to continue to reserve a spot on our radar for this play, and watch for the stock to continue to establish higher lows and higher highs off of its recent 52-week lows.
____
StoneCo Inc STNE – We also had the STNE 04/18 $37.50 & $39 Calls highlighted in yesterday’s report, and while we didn’t see quite the same intensity of activity as the above-mentioned play, that pair of contracts did get off to a good start, with nearly a full month remaining until expiration.
The $37.50’s traded in a range from 4.60-6.20 for a 35% move, and the $39’s went from 4.20-5.00 (+19%). We’ll continue tracking these as well.
_____
Fresh Post-Earnings Ideas:
FedEx Corp. FDX Weekly $172.50-170 Puts
General Mills, Inc. GIS 04/18 $47.50-50 Calls
Extended Watchlist:
SCNA, NAVB, TYHT, NVRO, PIR