Playing Yet Another Market Reversal

Fresh Options Ideas

We’ve been playing the markets like a fiddle throughout one of the most volatile periods in history, taking advantage of the see-sawing back and forth, and having been able to deliver multi-bag gainers to our readers. Yesterday was no exception.

After Monday’s historic selloff, we turned right around yesterday and fearlessly placed some SPY Calls on watch, which provided instant returns for us.

SPY Weekly $285-288 Calls
 3.00-8.74 (+191%)
$286: 2.70-8.08 (+199%)
$287: 2.43-7.61 (+213%)
$287.50: 2.26-7.31 (+223%)
$288: 2.25-7.04 (+213%)

We seem on track to see another reversal and down day for stocks today, so we’re going to want to reverse our position and signal interest in the SPY Weekly 282-279 Puts to try to stay in sync with the erratic pulse of the markets.

Aytu BioScience, Inc AYTU

We spotted AYTU in the premarket yesterday, including it in our morning report, and the stock put up the number one performance on the NASDAQ for the day. This was as the company secured the US rights to distribute a rapid point-of-care coronavirus test.

From a low of .91 AYTU reached 2.99, marking an intraday pop of 229% The company did, however, throw a wrench into the works in terms of continuing that run this morning, as they announced a huge $9M direct offering today, which will likely counteract any chance the stock had at stringing together some more nice gains of a similar magnitude.