TripAdvisor, Inc. TRIP – Options Update
After witnessing intraday gains from 380-650% from the range of TRIP Weekly Calls we tagged for tracking on Wednesday (as well as a 120% pop from the 10/30 $85 Calls we also signaled) , we continued to monitor those contracts yesterday and were met with further opportunities.
$80 Calls – Daily Range: .90-3.50 – Max Gain: 288%
$81 Calls – Daily Range: .55-2.10 – Max Gain: 281%
$82 Calls – Daily Range: .30-1.40 – Max Gain: 366%
The majority of the open interest in the original range of contracts we highlighted (78.50-82.50 Calls) fell in the $80′s and above, and that’s also where we’ll want to see the stock maintain support on any pullbacks. We’ll continue to look for action there as the week draws to a close.
We’ll also continue to keep an eye on the 10/30 $85 Calls over the next couple of weeks leading up to their expiration.
Fresh Options Idea:
Youku Todou, Inc. YOKU Is gapping up considerably in the premarket after Alibaba (BABA) submitted an offer to buy the company’s streaming video service. We’ll be looking for action in the Weekly $23-26 Calls, as well as a longer-term idea of the 10/06 $27 Calls in the event of a sustained breakout.
*Just to float the usual reminder for a Friday session: Volatility rises in options contracts with a weekly expiration which heightens the risk-reward factor considerably, so extreme caution should be exercised.
Sierra Resources Group, Inc. SIRG
We flagged SIRG in yesterday’s extended watchlist, and the stock had a heck of a session, hurtling out of super-subpenny territory. From an early morning low of .0007, the stock stair-stepped its way to an afternoon high of .0015.
That registered as an intraday gain of 114% and the move occurred on volume which exceeded the monthly average by approximately three times.
Speaking of super-subpenny movers that we’ve been tracking; Manzo Pharmaceuticals, Inc. MNZO appeared on our watchlist last Wednesday and has since produced a healthy swing. We observed a low of .0003 subsequent to our mention of the stock, followed by a high of .001, which is equal to a 233%
Both this and SIRG serve as good examples of why we’d never completely abandon speculation in subpenny stocks. There’s always a chance that the next high-flyer is just around the corner, and as you can see, the possible gains over a short period can be quite substantial.
ALIM, COLV, NECA, KATX
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