Yesterday the stock made its way up from a daily low of .1461 all the way up to .2145. That was an intraday spike equaling 47%, and measuring from Monday’s low, an overnight increase of 71% so cheers go out to any of our readers who were following this play to some fantastic short-term gains!
As we stated in our previous reports, we plan to keep a close eye on Radio Shack as the company deals with the many complexities of Chapter 11.
New Options Ideas
PepsiCo, Inc. PEP
In the spirit of taking as much advantage of the current earnings season as possible, we have continued to scour for potential options trading opportunities on earnings beats. PEP is standing out on our radar screen this morning, with Wall St. expectations having been exceeded.
PEP is showing a healthy chart currently in an ascending wedge pattern, and the stock is in the process of breaking all-time highs so we’re also entering blue-sky territory with this one.
Along with its Q4 figures, Pepsi also revealed that it would be initiating a share buyback program to run through 2018 where the company intends to buy back up to $12B of its own stock, which bodes well for the long-term health of the beverage and snack giant. >> View PR
To potentially take advantage of the current conditions with PEP, we’re going to be looking at Calls in the $99-100 range. Yesterday the $99’s closed at .62, the $99.50’s at .46, and the $100’s at .33. After what we expect will be a significant gap-up followed by some measure of profit-taking we will be looking to get ourselves positioned for what could be a strong rebound in those contracts.
We can also keep watch over the Feb. 20th $102 Calls (Last Trade: .23) for a potential swing-trade into next week.
First Solar, Inc. FSLR
Yesterday upon receiving word that Apple, Inc. had negotiated a solar deal with FSLR worth nearly $850M, FSLR went crazy, running into the close and continuing to climb in after-market trading as well as gapping up in today’s premarket action.
As a result of these circumstances, we’re going to be monitoring the FSLR $48 Weekly Calls (Closed 1.51) for what has the potential to be a very nice, rapid gain opportunity.
Alibaba Group Holding Ltd. BABA – Reminder
We also want to take a minute to reiterate our longer-term options strategy regarding BABA. Yesterday we outlined the March 20th $95 Calls (Closed: .85) We could see those open a bit higher today as BABA is looking like it wants to gap up to slightly this morning.
AERO, AKAM, NVIV, LGBI