Dollar General Corp. DG
We selected a wide range of puts in the DG chain on Tuesday morning, the DG Weekly $109-103 Puts following the company’s earnings release, wherein it lowered its outlook for the year. Despite a sales beat, shares slid considerably. With the help of an overall market downtrend in which the Dow took an 800 point hit, every set of contracts we selected made multi-bag gains.
$109 Puts – Range: 2.20-6.80 – Max Gain: 209%
$108 Puts – Range: 1.76-5.80 – Max Gain: 230%
$107 Puts – Range: 1.25-4.40 – Max Gain: 252%
$106 Puts – Range: .88-4.18 – Max Gain: 375%
$105 Puts – Range: .55-3.30 – Max Gain: 500%
$104 Puts – Range: .40-2.53 – Max Gain: 532%
$103 Puts – Range: .30-1.90 – Max Gain: 533%
MIK Weekly $15 & 17.50 Calls
Aphria, Inc. APHA
We’ve had an eye on Aphria, and indeed the whole Canadian cannabis market, for years. Having previously been traded under the symbol APHQF on the OTC Markets, the Canadian cannabis company now trades on the NYSE and bills itself as a drug manufacturer in the healthcare industry.
As a result of allegations against the company, the stock has taken a severe beating in recent sessions. We’re going to begin to observe more closely as a potential bottom bounce play in the days and weeks ahead, as it has reached the point of being heavily oversold with a huge short interest. We’ll want to be hanging around when the shorts start to get squeezed.
SGSI, PSTG, TVIX, OZM, AAC, WKHS, XSPA, DCIX, MDCA