One of our top activities each day is poring over the previous day’s post-market quarterly earnings reports, as well as the premarket releases from that morning, in order to find those stock most likely to produce the type of volatility we look for to make quick-strike trades.
The earnings calendar is rather busy at present, with three names jumping to the forefront on our scanner today. We’ll give a brief overview of their quarterly highlights, as well as ranges of contracts to place on watch for the remainder of the week.
International Business Machines Corp. IBM
-Beat on profit, strong outlook
Radar: Weekly $130-134 Calls
United Technologies Corp. UTX
-Earnings and revs beat, more than 70% increase in Q4 profit
Radar: Weekly $113-118 Calls
The Procter & Gamble Co. PG
-Strong sales, earnings beat, boosted guidance
Radar: Weekly $93-95.50 Calls
CODX, SYF, EARS, QSR, BPTH, PUMP, IDEX
SPDR S&P500 ETF (SPY)
We are wrapping up a very solid week, which even included a twenty-bagger (NFLX $300 Calls, +2069%). This morning, with the markets appearing to be geared toward bullish finish to the week, we will entertain a range of SPY Calls, for the possibility of some good daytrades to really end things on a high note going into the upcoming long weekend.
The SPY is our go-to target when not a lot else is jumping off of the scanner, and we’ve played it successfully on more occasions to count. The most recent being a couple of sets of ideas we made just prior to the New Year, which resulted in gains ranging from 300-600%
Today, we are going to be tracking the SPY Weekly $263.50-265 Calls.*
JBHT 02/15 $100 & $105 Calls
CGC Weekly $43-44.50 Calls*
*Please do not attempt to trade weekly options on a Friday unless you an advanced level trader with disposable funds.
BPTH, MTNB, KNDI, HSGX, CRBP, CCCL
Incoming search terms:
Zillow Group, Inc. Z – Update
We’ve been tracking Zillow since last Wednesday, at which time the stock was trading at a low of 27.92. We were prompted to highlight the play after noticing some big Form-4 submissions near the bottom, with a large gap to the upside on the chart. That morning we signaled the Z 01/18 $30-40 Calls which have produced some really nice gains so far.
The stock itself, after 6 consecutive green days, attained a high of 37.20 yesterday, which marked a 33% increase in just over a week’s time. That’s fantastic volatility for a stock in this price range. That activity has led to some mind-numbing gains in our group of tracked contracts.
The following figures are the ranges and total possible gains on those from last Wednesday, through yesterday’s highs:
$30 Calls – Range: 1.57-7.43 - Max Gain: 373%
$35 Calls – Range: .57-3.70 – Max Gain: 549%
$40 Calls – Range: .10-1.45 - Max Gain: 1350%
We also have a couple of longer-term bottom watch plays that we wanted to include in today’s report and monitor for potential rebounds going forward.
We are looking at both Bio-Path Holdings (BPTH) and Ampio Pharmaceitucals (AMPE) in a similar fashion today. Neither stock has shown a great deal of volatility of late, hovering around their recent relative lows for some time. Both charts also boast gaps to the upside. We’ll place this pair on recovery watch in the weeks ahead.
HEMP, AGRX, SOLO, EQGP, SLS, PCG