Massive Form-4 Alert

Options Reviews

Yesterday morning, our primary order of business was to continue our commitment to bringing our readers as many solid quick-strike options ideas as we can. Not surprisingly, we were able to see some very nice opportunities in our designated targets.

Despite a mixed bag of bears and bulls, the volatile intraday swinging action of the markets made it possible to jump on big gains for each of them. Here were our top plays for the day and the total potential gains which could have been achieved.

SPY Weekly $244-242 Puts
$244: 1.30-2.89 (+122%)
$243: 1.08-2.49 (+131%)
$242.50: 1.04-2.37 (+128%)
$242: .97-2.19 (+126%)

KMX Weekly $50-55 Calls
 .50-3.90 (+680%)
$50: .30-2.03 (+577%)

Howard Hughes Corp. HHC – Fresh Options Idea

We want to place some options in the HHC chain on longer-term watch today after noticing some massive institutional insider buying that has come in near the stock’s recent lows, to the tune of $500M. You don’t sink those kind of funds into a stock unless you are supremely confident that its present level of support is rock solid. We are going to begin tracking the HHC 07/17 $50-60 Calls as a result.

Extended Watchlist:

COVID Test FDA Green-Lit to Begin Shipments

Nova Bay Pharmceuticals, Inc. NBY

We are going to want to keep an eye out for NBY this week. The stock saw a surge last week, and is scheduled to report earnings on Thursday. The company recently launched a line of anti-microbial disinfecting wipes for the face and eyes. This has a unique synergy with the current health crisis, as one of the piomary ways to help slow the spread of COVID-19 is to limit the germ exchange which takes place when touching your face, and then touching objects around you.

It seems evident that consideration for how a stock related to the sweeping pandemic which experts warn could persist for as much as 18 months, is going to have to be built into virtually every idea we look at for our reports for the foreseeable future.

Aytu BioScience, Inc. AYTU

We’ve been tracking AYTU for a couple of weeks now, beginning with our report from the morning of the 10th. We want to rehash our interest in this coronavirus related play as the company announces the official FDA distribution green light for its rapid point-of-care diagnostic test.

We already witnessed a huge run by AYTU since we’ve been covering it, which was later mitigated  by a large public offering. However, we want to continue to stay hot on its trail in the wake of this morning’s news, which we’ll share below. The company expects the first shipment of 100,000 tests to be distributed presently, which is especially significant, considering that exceeds the total number of Amicans who have been tested so far, as the US lags behind almost every major country in that regard.

Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company focused on commercializing novel products that address significant patient needs announced today that it has received confirmation from the U.S. Food and Drug Administration (FDA) that the company may begin distribution of its Coronavirus Disease 2019 (“COVID-2019”) IgG/IgM Rapid Test throughout the United States. The COVID-19 IgG/IgM Rapid Test is intended for professional use and delivers results between 2 and 10 minutes at the point-of-care. (>>Read Full PR)

Target Corp. TGT

We also want to quickly update readers on a longer-term options options idea we recently submitted, the TGT 04/03 $98-90 Puts. It’s a wide range of contracts and toward the end of last week, the first of those began being pushed into the money as TGT fell.

The total ranges are as follows on the $98 and $97 Puts, and we are going to want to continue to monitor the entire range between now and next Friday, because this idea may just be getting warmed up. 

 2.51-5.79 (+131%)
3.50-5.59 (+60%)

Extended Watchlist:

TGT Update, Fresh Options Idea

Target Corp. TGT

Just as we mentioned yesterday morning to start off the week, it was on Thursday morning that we signaled our interest in tracking some TGT Puts. They hadn’t quite heated up yet by the end of last week, but we urged readers yesterday to pay close attention, as the gains seemed imminent.

We were correct in that assumption, as the markets once again set a new record for worst daily losses in history. That helped propel the massive range of contracts we signaled, the TGT 04/03 $98-90 Puts, to double-bag gain status and beyond, exactly as we predicted.

Here are the trading ranges on those contracts since we’ve had them on our radar:

TGT 04/03 $98-90 Puts
$98: 3.37-6.92 (+105%)
$97: 2.90-6.60 (+128%)
$96: 2.73-6.00 (+120%)
$95: 2.21-5.95 (+169%)
$94: 2.54-5.50 (+117%)
$93: 1.99-5.05 (+154%)
$92: 2.44-4.50 (+84%)
$91: 2.00-4.25 (+113%)
$90: 1.47-3.80 (+156%)

Transdigm Group, Inc TDG

We would like to put together a set of call contracts to watch in the TDG chain. It’s no surprise that the stock is at a bottom at present, but what is remarkable is the amount of insider buying that has taken place in the last week, to the tune of roughly $180M.

That typically signals an insider’s confidence that the stock will not fall much further. We are going to put the TDG 05/15 $350-370 Calls on watch to track in the weeks ahead.

Extended Watchlist: