Huge Options Success
We went all-in on the options front on Friday, with both of our primary focal points being high-risk options plays, and the rewards were considerable. Both sets of ideas turned out to be successful, regardless of the strike prices chosen.
Alibaba Group Holding Ltd BABA – On Friday morning, we were just patting ourselves on the back for Thursday’s successful alert of the BABA Weekly $162.50-170 Calls which had provided some nice gain opportunities on the order of 119-311% Those figures were nice, but they paled in comparison to Friday’s performances. We did specify that we’d want to “continue to keep our eye on these plays to close out the week, as further increases are a possibility.”
“Further increases” may be the understatement of the year. Explosions would have been a more accurate term! Our highlighted range actually contained an ultra-rare FIFTY-bagger, so anyone who had been following our BABA options coverage had a chance to make a mint!
$244.50 Calls – Range: 2.00 – 6.95 – Max Gain: 247%
$245 Calls – Range: .53-4.41 – Max Gain: 732%
$245.50 Calls – Range: .10-2.18 – Max Gain: 2980%
$246 Calls – Range: .01-.51 – Max Gain: 5000%
Wal-Mart Stores, Inc WMT – Our other options focus from Friday was for Walmart, with the WMT Weekly $79.50 & $80 Calls. An early run by the stock created the necessary volatility to push our ideas to multi-bag status inside of the first hour.
The $79.50 Calls were the big winner there, running from .19-.86 for an intraday pop of 353% The $80′s weren’t too far behind with a solid push from .15-.46; a gain of 207%
China Information Technology Inc. CNIT
We saw a wave of increased activity in several China-based plays on Friday, and CNIT is one among them that seems worthy for observation as we kick off another trading week this morning.
We like the chart setup- the stock had a really solid run from May to June after which there was a consolidation, and has recently been showing strength off of its established support in the mid-.80′s. There was also a recent bullish breach of the 50DMA.
The company will need to get and keep its shares above $1.00 to satisfy NASDAQ’s minimum bid requirements, and we think there’s a fair chance of that happening.
RBNW, DDDX, GAHC, BTSC, JMEI, FALC, CTRV
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