As we near the midway point of this holiday-shortened week, we are going to be taking a look at a fresh earnings related options idea with UnitedHealth.
The company just posted an impressive across-the-board earnings beat, while the chart itself was already in a prime bottom-bounce position. We are going to track the UNH Weekly $232.50-237.50 Calls, which should be in very good shape if events play out as expected.
Fastenal, Inc. FAST
We also signaled the FAST 04/18 $62.50-67.50 Calls, last Thursday following the company’s own earnings beat. The moves we’ve observed since then have been moderate, but still impressive nonetheless.
$62.50 Calls – Range: 5.40-7.10 – Max Gain: 31% $65 Calls – Range: 2.40-4.80 – Max Gain: 100% $67.50 Calls – Range: 1.10-2.43 – Max Gain: 121%
As we were just mentioning yesterday morning, we designated a pair of contracts to watch in the CNC chain toward the end of March, with the CNC 09/20 $50 & $55 Calls.
Since that time the stock has been in a near-continual uptrend, and after yet another bullish session yesterday, we have new highs to report on our ideas. The $50 Calls have now traded in a range from 1.80-9.50, amounting to a total move of 428%. The $55 Calls have been on an insane run, and they have thus far traded up from .31-6.70. That works out to a rise of 2,061% in a span of only nine trading sessions.
BP Prudhoe Bay Royalty Trust BPT
Weve got another options chain that we ‘d like to signal some longer term calls in as well. BPT fell off a cliff yesterday, and while it may have slightly further to fall before reversing, the chart shows a history of rapid recoveries whenever the stock is beaten back as it has been this week.
We’re going to designate the BPT 05/17 $22.50-25 Calls as two contracts of interest and begin to track them over the days and weeks ahead.
Last Monday the 25thwas the day that we began tracking AVEO as a potential bottom bounce play, and in that short span, we have seen some nice progress to that end.
The stock began to move the morning of our initial alert, and yesterday received a big boost, finishing as the #1 gainer on the NASDAQ for the day. Thus far we have seen AVEO run from a low of .55 on March 25th, to yesterday’s new high of 1.85. That works out to a seven-session upswing of 236%
RIOT Blockchain, Inc. RIOT
We also tagged RIOT for observation back on February 20th, and subsequently witnessed a low of 2.85. The run it has gone on with the help of Bitcoin’s resurgence to the $5K neighborhood, was solid. RIOT itself saw a push to a high of 5.15 this week, marking a positive change of 81% since our last mention.
We also want to highlight both comScore, Inc. SCOR, and Mr. Cooper Group Inc. COOP as potential bottom plays. Both stocks are giving off extreme oversold signals, while trading near their annual lows. We’ll want to keep these on watch for possible recoveries.
We are incredibly proud of our alert on CGC a few weeks ago. The company had just seen its large investor, beverage behemoth Constellation Brands (STZ) had increased its stake Canopy by more than $4B.
This was a key factor in our formulation of the idea to track the CGC 09/21 $30-40 Calls, which we presented to our readers on the morning of August 15th. At the time, CGC stock was trading at a low of 29.05. The bull run which followed has been an absolute thing of beauty. This morning in the premarket, CGC stock has traded for as much as 57.05, marking a rise of 96% in a matter of three weeks.
That incredible move up has facilitated some unbelievably large gains in our designated call contracts. Their overall ranges and possible gains over that time span are as follows:
$30 Calls – Range: 1.76-21.82 – Max Gain: 1140% $35 Calls – Range: .56-17.30 – Max Gain: 2989% $40 Calls – Range: .16-12.30 – Max Gain: 7587%
Fun Fact: The purchase of ONE contract for $16 at the $40 strike point on the day of our initial alert, would have been worth $1214 at its highs this morning! Cheers to anyone who has gotten even a piece of that action!
Added Note: Canopy Growth is of course a cannabis related stock, so while we’re on the subject, here’s watchlist of lower priced pot plays to also watch as we head into autumn, traditionally one of the best times of year for the cannabis sector as a whole.
It’s been just under two weeks since we alerted readers that we were interested in the CGC 09/21 $30-40 Calls. This was as a direct result of beverage behemoth Constellation Brands’ (STZ) adding a multi-billion dollar block to its stake in CGC.
CGC shares themselves have risen 66% over the same period, from a low of 29.05 to yesterday’s new high of 48.19.
What this continued bullish surge has done for our options ideas has been nothing short of eye-popping. The update ranges and total possible gains so far are as follows:
$30 Calls – Range: 1.76-18.20 – Max Gain: 934% $35 Calls – Range: .56-13.90 – Max Gain: 2382% $40 Calls – Range: .16-8.75 – Max Gain: 5369%
The $40′s especially have obliterated our wildest expectations. A paltry $16 investment on a single $40 Call contract at the lows, would have been been worth roughly $859 at the highs!
As you can very plainly see, options are where the biggest potential profits lie, so we will of course be offering up a couple of fresh ideas this morning.
Both TIF and DSW are coming off of good receptions in the wake of their quarterly earnings reports today. We’ll take that into account and keep the following plays on watch: