We formulated our first options ideas of the week yesterday morning, and unsurprisingly, we hit on each and every one of them. Our acumen when it comes to identifying quick-strike options plays is really top-drawer, a fact to which any of our regular readers can attest.
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Bank of America Corp. BAC
We took note of BAC 07/15 $15 Calls yesterday, which had extremely high open interest to the point of suspicion on our part. We were right to want to follow the money in this case, because despite the fact that we have designated this a longer-term play, the potential returns were instant. Those contracts traded up from .51-.71 for possible gains of up to 39% on the day.
We’re certain that our observed range is going to increase even further with BAC having cracked the $15-mark here in the premarket this morning. Should the stock follow up yesterday’s session with another bullish performance, things could get very interesting, very quickly.
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ProShares Short VIX Short-Term Futures SVXY– Our targets here were the SVXY Weekly $53.50-55 Calls and despite the SVXY closing slightly down on the day, we first witnessed some nice intraday moves to the upside that facilitated opportunities for the following gains:
$53.50 Calls – Trading Range: 1.60-2.10 – Max Gain: 31%
$54 Calls – Trading Range: 1.50-1.70 – Max Gain: 13%
$54.50 Calls– Trading Range: 1.10-1.65 – Max Gain: 50%
$55 Calls – Trading Range: .74-1.25 – Max Gain: 69%
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FRESH OPTIONS IDEAS:
We won’t leave you hanging solely with an update from yesterday’s action- we’ve got a couple of fresh ranges to monitor in the GM and UA options chains as well. In both cases we’ve got stocks that are gapping up on the strength of earnings beat this morning. Our corresponding ideas are as follows:
General Motors Co. GM – Weekly $32-34 Calls
Under Armour, Inc. UA – Weekly $45-48 Calls
We placed RNVA and CLMT on a bottom-watchlist at the end of yesterday morning’s premarket report, following a newly registered 52-week low for each of them on Tuesday. We just wanted to rehash those ideas this morning, as both plays rebounded off of their lows in a stroke of excellent timing on our part.
Rennova Health, Inc. RNVA traded in a range from .57-.70, an intraday gain of 23%, while Calumet Specialty Products Partners CLMT made a 16% move from 4.64-5.39.
Now we’ll just want to verify the reversal in each case by monitoring the stocks in sessions to come for telltale signs of a continued recovery.
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We’re also going to signal interest in The ONE Group Hospitality, Inc. STKS for an extended-term bottom-watch.
APRE, SBES, XGTI, CPLP, CEQP,
