Options Recaps & More

Reviewing Friday’s Options Plays

In Friday morning’s report, we set out several last-minute options ideas, and our first order of business to kick off the fresh trading week is to highlight the performances recorded by those targets.

We had a mixture of bulls and bears on our watchlist and for most of them, we saw some pretty nice action and potential intraday gains:

DKNG Weekly $25 Calls
$280: 
.90-4.30 (+378%)

AMAT Weekly $54.50-53 Puts
$54.50: 
1.30-2.63 (+102%)
$54: 1.05-2.50 (+138%)
$53.50: .72-2.29 (+218%)
$53: .50-1.80 (+260%)

ACB Weekly $7-8 Calls

$7: .86-3.03 (+252%)
$8: .28-3.75 (+1238%)

In the case of ACB, not only did our options targets kill, especially with that beautiful twelve-bagger, but the stock itself is on a heck of a run, seeing a low of 7.80 on Friday and reaching as high as 14.90 in early trading today. That’s a respectable move of 91% We’re also going to roll up to the ACB $13-15 Calls for this week.


Fresh Ideas:
SE Weekly $63-66 Calls
SPY 05/20 $292-295 Calls
TDG 07/17 $390-400 Calls 

SPY Puts Still in Play, New Ideas

SPY Review

The tides continue to ebb and flow, and our primary goal is to roll with them as best we can. This is just the concept we were illustrating yesterday when highlighting the imprtance of having a range of bullish and bearish targets on watch during such volatile times. The markets dipped in the morning, and recovered rather nicely throughout the course of the day.

That gave our updated idea on the SPY some traction early on in the session, with our targets posting some respectable moves: 

SPY Weekly $280-278 Puts
$280: 2.93-5.05 (+72%)
$279: 2.50-4.44 (+78%)
$278: 1.18-3.34 (+183%)

With the report on retail sales showing more than a 16% loss for the month of April, the market may head lower and push these gains up even further early on.


Fresh Options Ideas*:
DKNG Weekly $25 Calls
AMAT Weekly $54.50-53 Puts
ACB Weekly $7-8 Calls
CSCO Weekly $44-43.50 Puts

*Please do not trade weekly options on a Friday unless you are an advanced level trader with access to disposable funds! 

Blue Horseshoe Stocks: Great Start to the Week

T2 Biosystems, Inc. TTOO

This past Thursday morning, we cautioned our readers that TTOO was heavily oversold, and sniffing out a bottom with a massive gap to the upside. As it turned out, our timing on that alert could not have any better. The stock saw its low of .52 that day and hasn’t looked back since. Yesterday, TTOO reached .76 which works out to a three-day upswing of 46%, a modest yet respectable move.

More importantly, the stock is once again taking off on the heels of a fresh PR this morning (below), reaching a new high of 1.13 in premarket trading. That further extends our observed range on this play to 117% as TTOO begins to fill the gap on the chart that we mentioned which runs up to the 1.36 mark.

LEXINGTON, Mass., Aug. 06, 2019 (GLOBE NEWSWIRE) — T2 Biosystems, Inc. (NASDAQ:TTOO) announced today that the United States Centers for Medicare & Medicaid Services (CMS) granted approval for a New Technology Add-on Payment (NTAP) for the T2Bacteria® Panel for FY 2020.

The T2Bacteria Panel, the first and only FDA-cleared test to identify sepsis-causing bacterial pathogens directly from whole blood in 3 to 5 hours without the need to wait for blood culture, is now also the first and only in-vitro diagnostic test to ever receive approval for NTAP. (>>View Full PR)


Options Reviews

SPDR S&P500 (ETF) SPY –  As a fresh options idea to start the week yesterday morning, and in light of the bearish market sentiments that we were sensing in the premarket, we went with SPY Weekly $290-288 Puts as our targets. Early indications ultimately proved to be correct, as the markets tanked on the day, sending those contracts on a huge ride.

The following multi-bag gains were there for taking: 

$290 Puts – Range: 2.27-8.19 – Max Gain: 261%
$289.50 Puts – Range: 1.98-7.30 – Max Gain: 269%
$289 Puts – Range: 1.51-7.10 – Max Gain: 370%
$288.50 Puts – Range: 1.29-5.54  – Max Gain: 329%
$288 Puts – Range: 1.18-6.10 – Max Gain: 417%

____

Allakos, Inc. ALLK – We also signaled interest in the ALLK 08/16 $45-60 Calls yesterday in opposition to the market activity we were observing, and those targets bucked the trend quite nicely, with three out of the four producing notable opportunities on the day:

$45 Calls – Range: 16.41-25.53 – Max Gain: 56%
$55 Calls – Range: 9.00-15 60 – Max Gain: 73%
$60 Calls – Range: 6.75-14.20 – Max Gain: 110%
____

Fresh Idea:
Emerson Electric Co. EMR 08/30 $63-64 Calls
Innovative Industrial Properties, Inc. IIPR 08/16 $100-105 Calls


Extended Watchist: 
ACB, ATRS, TOPS, KALA, PAYS, TELL, MYSZ, PLUG, CARS(Bottom-watch)