Options Success, Bottom Watch Play

SPY Options Review

Yesterday morning, we went bearish on the markets as a whole, signaling the SPY 09/09 $340-338 Puts for observation in our premarket report. Our hunch on the daily direction of the wind proved solid, as the contracts in our designated range produced healthy intraday runs.

Here are the moves and total possible gains we witnessed there:  

SPY 09/09 $340-338 Puts
: 3.94-7.59 (+93%)
$339: 3.30-6.78 (+105%)
$338: 2.75-6.00 (+118%)

Fresh Options Ideas: 
KOD 10/16 $45-50 Calls
LULU Weekly $340-335 Puts 

Akabia Therapeutics, Inc. AKBA

We took notice of AKBA this morning because of the intriguing setup of the chart. The company had a bad clinical report recently and fell off of an absolute cliff. We want to place this on bottom watch and observe closely over the next several sessions.

There is a massive gap to the upside that you could drive a truck through, so we’re going to be anxious to see when the stock will move to fill some of that gap.

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:

New Highs to Report

More New Highs for Biotechs

Essentially every play we’ve been tracking that is in any way related to medical/biotech have been setting new highs as fast as we can update them. The coronavirus hysteria, along with an underlying need for a market correction is producing some incredible effects.  Here are the new highs on such stocks on our watchlist.

Co-Diagnostic Inc. CODX – As we were mentioning yesterday, we’ve been on the trail of CODX since the end of last month, at which time we observed a low of 1.52. Yesterday, just as we cautioned it would, the stock reached as high as 19.67. That extends our observed range on this play to 1194%

Vaxart Inc. VXRT – Another coronavirus play we’ve been watching has been VXRT, beginning on January 31st  at a low of .956, and there is an impressive new high to report here as well,. The stock hit 3.40 yesterday, which brings our total possible gains on VXRT to 256%

iBio, Inc. IBIO – Lastly, is a stock we placed on watch just a shade under three months ago, in IBIO. Subsequent to our tag on 12/05, we observed a low of .189 in IBIO, which has given way to a new high of .887 this week as viral virus fears continue to sweep the investment community. That represents a gain of 369%


Fresh Options Ideas: 
SPY 03/13 $298-301 Calls