We also showed interest in the July 19th $15 Calls, which, leading up to that point, had been trading in the .30-.38 range, and even ventured so far as to say that a double or triple could be possible. That move came rather quickly over the remainder of the trading week, as those contracts dipped as low as .25, and by the end of the day on Friday had come all the way back to close at .61.
For us, that represented an excellent three-session move, allowing gains of up to 144% for options traders. The stock itself made a modest move up also, to the tune of 8% from 13.62 to 14.77.
The PBR chart is still looking quite ripe, with several bullish indicators catching our attention. The RSI is strengthening rapidly, there appears to be a MACD cross in the making, and provided the stock can maintain support at or above the channel between the 50DMA of 14.19 and Friday’s swing low of 14.32, we like the chances of seeing even more gains from PBR.
For intraday/intraweek flip opportunities, we can look into the $14-$15 Weekly Calls, but granted the overall trend continues, a longer-term play will continue to be the 07/19 $15’s, which as we said, have already afforded us a double-bagger.
Shamika 2 Gold, Inc. SHMX
On Thursday, we added SHMX to the mix as a sub-penny play that had struck us as having some potential. As with the majority of stocks trading in the triple-zero range, SHMX is susceptible to rapid swings in price, and we saw that first hand as we closed out the week. On Friday, the stock saw a low of .0003, and a subsequent upswing to its closing price of .0005.
That made it possible for traders to nab a quick profit of 67% We always want to be extremely cautious when dealing with volatile plays in this price range, as they are not for the faint-hearted. Quick-strike trades are the order of the day, and for more skilled traders, proper timing of each dip and rip can lead to gains really piling up.
Extended Watchlist:
TMSH, TBEV, IDIX, ACHN, SQNM, DRL, PGNX, PFIE, LIVE