Shire plc SHPG – Options Update
The idea that we formulated earlier in the week with regard to the SHPG options chain has already provided us with gain opportunities, but the gap up we’re seeing this morning could really make things interesting. Just to refresh your memory, our target range was the SHPG Weekly $175-180 Calls.
With the stock gapping up big-time, having already hit a high of 185.00 in the premarket, anyone who entered one or more of these contracts prior to this morning will be in line to reap some serious profits right out of the gate.
Our observed lows for each set of contracts was as follows: $175 – 2.60, $177.50 – 3.00, $180 – 1.65. With every one currently being pushed deep into the money, it will be interesting to see the subsequent highs that are recorded today.
We feel it’s generally a good idea to lock in profits on a gap-up, just in case the stock retraces and fills the gap.
FRESH OPTIONS IDEA:
Tesla Motors Corp. TSLA – Tesla took a gut-punch yesterday as Tuesday’s post-market announcement of its offer to purchase SolarCity met mixed reviews, and appears to be setting up for further backsliding.
Should this bearish trend persist into today’s trading session, we’ll be very interested in tracking the activity of
the TSLA Weekly $200-195 Puts.
BioScrip, Inc. BIOS
We also want to provide a brief update on BIOS, a stock we alerted on Friday just in the nick of time to catch a nice uptrend. From a low of 2.23 that day, the stock has recorded higher highs and higher lows every session since, culminating in a new high of 2.87 yesterday. That works out to a respectable four-session boost of 29%
We still like the look of the BIOS chart, which is showing hints of potential for further moves to the upside. Key resistance is sitting at the previous swing high of 3.10, so we’ll be on the lookout for a breach of that level,.
CTIC. XIV, BKS, PBR, ONCI, ZONX, RXDX(Potential bottom-play)