On Wednesday, some of you may recall our interest in FB calls, as we stated “if the stock can break the $46 barrier… we’d be looking at in-the-money Calls like the 09/21 $45.50′s.” As you can see on the included chart, after seeing a low of .10, those contracts would go on to trade as high as .85 during yesterday’s session. That move was good for overnight gains in excess of 750%
With FB gapping up this morning and hitting new 52-week highs, we are going to want to continue giving our attention to the Calls. Of course, in the event that we see a reversal off of these substantial gains, we are going to be on the lookout for a dip-and-rip scenario, which could bring us even further gains with a properly timed bottom.
Apple, Inc. AAPL – Options
We’re also seeing a gap up in AAPL which is coinciding with the release of the latest versions of the iPhone 5(S/C), and with a sizable gap to fill on the chart, we could actually see AAPL go to $490 today. If it did approach that level, we’d be interested in the $480-485 Calls, which could provide us multi-bag gains.
Other than flipping the weekly Calls intraday, we might also want to consider contracts with later expiration dates if it appears AAPL is gaining a head of steam that would carry over into next week.
Gogo, Inc. GOGO
We first mentioned GOGO on Monday, and at the time the stock was trading as low as 14.79. Currently we are seeing the stock trading at 18.15 pre-market, (a gain of 23%) so this is another play that will be grabbing our attention today. For a big-board stock in this price range to see a gain of that magnitude inside of a week is nothing short of remarkable.
Gogo actually has an intriguing technology for providing super-standard Wi-Fi internet connections to airline passengers with in-flight data delivery speeds of up to 60Mbps. With the company just having announced that they will be bringing their products to North America in 2014 pending FAA approval, this is definitely a stock that we are going to want to put on our long-term watchlist, as we see how its story plays out.
Extended Watchlist:
FREE, CYCC, VRNM, ACRX, FU, PZG, RNA (Big gap-down, watching for bounce.)