Acuity Brands, inc. AYI – Options Update
We took the opportunity to jump on some AYI calls following a poor showing from the company’s Q3 financials. We felt that the blow taken by the stock in the previous session was an overreaction, and decided to radar a couple of sets of contracts in the AYI chain to correspond with what we assumed would be a rebound from this burst of overselling,
Our targets were the AYI 07/19 $125-130 Calls. We banked on a course correction to provide us with a push and things turned out just as we hoped they might. The stock traded in a daily range from a low of 129.90 and cruised as high as 136.74. That allowed for some very respectable intraday gain opportunities for us, and we will want to continue to monitor these in the sessions ahead.
The $125 Calls ran from 6.10-11.55 for a daily rip of 89% while the $130′s went from 2.85-7.20, a gain of 153% A full two weeks remain before these contracts expire.
KB Homes KBH – Recap
We also signaled our interest in some KBH calls last Thursday. Since that time, the stock has been slowly creeping upward, and we’ve realized the potential for some very nice moves in our KBH 07/19 $26-27 Calls, which experienced their lows on the morning of our initial alert, and reached new highs yesterday.
The $26 Calls ran from .35-1.05, for an even 200% burst, while the $27′s fared slightly better. Those produced a move from .15-.47, signifying a run of 213%
ADOM, NAK, HSGX, TSU, CETX
We ended our week with some fresh options ideas on Friday, which, like a good majority of our ideas, saw chances for multibag gains on the day.
ULTA Weekly $320-327.50 Calls*
$320 Calls – Range: 9.20-17.60 – Max Gain: 78%
$322.50 Calls – Range: 8.80-18.80 – Max Gain: 108%
$325 Calls – Range: 4.90-19.26 – Max Gain: 108%
$327.50 Calls – Range: 5.10-16.74 – Max Gain: 110%
SPY Weekly $280.50-281.50 Calls*
$280.50 Calls – Range: .40-1.65 – Max Gain: 78%
$281 Calls – Range: .14-1.24 – Max Gain: 108%
$281.50 Calls – Range: .09-.79 – Max Gain: 108%
SPY 03/18 $281-282 Calls*
FIS 04/18 $110-115 Calls
*As always when we signal options expiring the same day of our report, we must insist that you NOT attempt any of these trades unless you are an advanced level trader with access to disposable funds!
Qudian, Inc. QD
We’re looking at a potential bottom-play in QD as we kick off the week also, which as you can see on the following snapshot, has a ripening chart at the moment. The company reported earnings this morning, which beat expectations, while revenues fell slightly short.
The stock could be setting up for another run at the $7.00 range or better, so we’re going to begin monitoring QD in upcoming sessions.
ABIO, ADOM, NAKD, SFET, NSPR,
Activision Blizzard. Inc. ATVI
We focused on stocks quite a bit earlier on in the week, so this morning we wanted to take the opportunity to put another potential options play into the mix. We’re constantly looking for company’s that have just reported earnings, which gives us the potential for the volatility that we want.
In the case of ATVI, while its quarterly figures were lacking, the tock was at a bottom, and appears to want to go green today. We will put the ATVI Weekly $42-43.50 Calls on watch this morning, and monitor for the remainder of the week for a possible rebound off of what was its new 52-week low, registered on Monday.
SPDR S&P500 ETF (SPY)
Our regular readers are well aware of our fondness for the SPY ETF. We have taken advantage of it on many occasions. A quick peek into our archives reveals that today is the 114th time we’ve mentioned the SPY in our newsletters. It’s a well that we continue to draw from, with no indications of that ever changing.
Today, after such a big move yesterday wherein the SPY broke its 200DMA, we want to look for continuation of the bullish behavior we’re observing. We will designate the SPY Weekly $274.50-275.50 Calls as ones to watch as we head through this midweek.
DBD, AVLR, FCX, ADOM, RWLK, YGYI, SN