We’re seeing a bit of a rebound in the markets this morning after they once again got crushed yesterday. Partially due to a better-than-expected economic report on Durable Orders, we’ll look for the highest profile companies with fresh earnings out that appear set to move this morning.
TSLA and MSFT both dropped their reports in after-market hours yesterday, and look to be our most promising potential targets today.
The tech sector as a whole was among the hardest hit in the recent spate of losses for domestic stocks, with many, if not most of its players being beaten back to unsustainably low levels, so the timing is actually quite good for some solid movement off of these earnings reports.
We expect a market recovery to provide us with plenty of chances to take advantage of all of these underpriced stocks as they rebound in the days and weeks ahead.
TSLA Weekly $310-317.50 Calls
MSFT Weekly $104-107 Calls
If you have been following our newsletters for any significant period of time, you know that we’ve been hitting home runs left and right in the options trading arena. We offered up a range of contracts in the LULU chain to watch on Friday on the heels of the company’s earnings drop, the LULU Weekly $149-152.50 Calls.
Unsurprisingly, we saw some very nice activity out of those plays to close out what had already been another successful week for options.
$149 Calls – Range: 5.35-10.70 – Max Gain: 100% $150 Calls – Range: 5.00-10.75 – Max Gain: 115% $152.50 Calls – Range: 2.95-7.30– Max Gain: 147%
Another very notable move from the plays we were watching last week came from the SPY $290 Calls which experienced a significant dip and rip, trading as low as .06 before closing at .65, an intraday rise of 983%
Walmart was already building a nice head of steam on the chart in the weeks leading up to this morning’s earnings release. Things have kicked up a notch this morning as Walmart recorded a resounding across-the-board beat, including an online sales increase of 33%
Given that we are always looking out for opportunities to trade options on the heels of a solid earnings beat, we are going to slate some Walmart calls for observation this morning.
We’ll be tracking the WMT Weekly $86.50-88.50 Calls after what we expect should be a dip-and-rip scenario.
Altimmune, Inc. ALT
We would also like to make mention of ALT this morning, after taking notice of the significant pickup in both price action and volatility yesterday.
That was preceded by a lengthy consolidation period as you can see on the snapshot below, and at the present time, the stock is beginning to come off of being oversold. We’ll watch this one for a potential recovery play in upcoming sessions.
Extended Watchlist: BDSI, BIOC, BLNK, IMMU, FRED, NOG