SPDR S&P500 ETF (SPY) – Recap
We went bullish on the SPY in our premarket report yesterday, and thanks to two distinct intraday pushes for the markets, there were opportunities across the board for our highlighted contracts throughout the session.
Those targets were the daily SPY 03/18 $281-282 Calls, and we saw significant moves from all three. The $281.50 Calls traded in a range from .34-1.06 for an overall upswing of 212% while the $282’s traded up from .15 to .58, a gain of 287% (We mistakenly lost exact data for the $281 calls, but the gain opportunities were very similar to those of the other two strike points.)
The Michaels Companies, Inc. MIK
We also want to signal a set of contracts on MIK, which was the one listing on this morning’s earnings calendar that jumped out to us the most. Michaels posted an earnings beat, but also happens to be trading near its annual lows.
We’re going to approach this like we would any other play with bottom-bouncer written all over it, by signaling some longer-term calls to give ourselves some extra time to see the recovery play out. We’re going to radar the MIK 04/18 $12.50 Calls and monitor their activity in the days and weeks ahead.
STNE 04/18 $37.50-39 Calls
FPAY, CPST, INSY, TROX, CPST, NCTY, SDRL, CREG, LGCY, AKER, PIR
SPDR S&P500 ETF (SPY) – Options Idea
We came up really big with some SPY options ideas just prior to the New Year break, and will look to continue that pattern today. The markets look to be gearing toward another slumping session, so we’re inclined to signal a range of of bearish ideas to correspond with the fund’s current activity.
We’re going to select the SPY 01/02 $248-245 Puts* for observation today, with the possibility of some considerable gain opportunities that would come our way with a bearish correction to last week’s bullish push.
Please note that these expire at the end of the day, and should thus be treated as Weekly options on a Friday. As we always mention in these instances: *Please do not attempt to trade options on the day they expire unless you’re a seasoned veteran trader with money to burn. While the potential rewards are great from this type of trading, the risk is equally grave.
Western Asset Mortgage Capital Corp. WMC
We want to put WMC on watch as a Form-4 bottom play, after noticing that the CFO picked up a multi-million dollar block of shares toward the end of last week, just as the stock has been coming down to new 52-week lows.
We will put it on our radar and be looking for it to establish itself as a recovery play as we kick off this new trading year.
GNCA, EBR, AKER, WMC, PLUG, NDRA, FCEL, CPST, CCCL
Spectrum Global Solutions, Inc. SGSI – Update
We’ve been tracking SGSI closely, and wanted to highlight the news the company issued on Friday morning pertaining to an appearance at an upcoming high profile conference. We also have a video presentation of the current SGSI chart that we strongly suggest our readers take the time to view.
Spectrum Global Solutions, Inc. (OTCMKT: SGSI), a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean, today announced that it will be presenting at the 11th annual LD Micro Main Event. (>>View Full PR)
Did you miss our special report on SGSI last Monday? It’s not too late to check that out and learn why we’re excited to be covering this fast growing company!
>>View SGSI Report<<
MARA, ESES, RSLS, DEA, SLS, ICON, RGSE, AKER, JKS