Dollar General Corp. DG
We selected a wide range of puts in the DG chain on Tuesday morning, the DG Weekly $109-103 Puts following the company’s earnings release, wherein it lowered its outlook for the year. Despite a sales beat, shares slid considerably. With the help of an overall market downtrend in which the Dow took an 800 point hit, every set of contracts we selected made multi-bag gains.
$109 Puts – Range: 2.20-6.80 – Max Gain: 209%
$108 Puts – Range: 1.76-5.80 – Max Gain: 230%
$107 Puts – Range: 1.25-4.40 – Max Gain: 252%
$106 Puts – Range: .88-4.18 – Max Gain: 375%
$105 Puts – Range: .55-3.30 – Max Gain: 500%
$104 Puts – Range: .40-2.53 – Max Gain: 532%
$103 Puts – Range: .30-1.90 – Max Gain: 533%
MIK Weekly $15 & 17.50 Calls
Aphria, Inc. APHA
We’ve had an eye on Aphria, and indeed the whole Canadian cannabis market, for years. Having previously been traded under the symbol APHQF on the OTC Markets, the Canadian cannabis company now trades on the NYSE and bills itself as a drug manufacturer in the healthcare industry.
As a result of allegations against the company, the stock has taken a severe beating in recent sessions. We’re going to begin to observe more closely as a potential bottom bounce play in the days and weeks ahead, as it has reached the point of being heavily oversold with a huge short interest. We’ll want to be hanging around when the shorts start to get squeezed.
SGSI, PSTG, TVIX, OZM, AAC, WKHS, XSPA, DCIX, MDCA
After a tumultuous month on the whole, October came to a solid end with a very strong performance from the markets, and in effect, a good showing by many of the ideas we presented in yesterday’s report.
Take-Two Interactive Software, Inc. TTWO – First we’ll give an update on the calls we made on Tuesday morning for TTWO- the Weekly $122-125 Calls. They started moving immediately, as we mentioned in yesterday’s report, and after another session the gains have piled up even higher.
$122 – 4.00-8.45 (+111%)
$123 – 2.49-7.80 (+213%)
$124 – 2.50-6.80 (+172%)
$125 – 2.50-5.40 (+116%)
Three of the four fresh options ideas we submitted in yesterday’s report also saw sizable gains on the day.
FB Weekly $150-155 Calls
$150 – 2.46-4.37 (+77%)
$152.50 – 1.46-2.67 (+83%)
$155 – .75-1.40 (+86%)
GM Weekly $35-37 Calls
$35 – .92-2.04 (+122%)
$35.50 – .62-1.60 (+158%)
$36 – .34-1.15 (+238%)
$36.50 – .19-.72 (+279%)
$37 – .11-.45 (+309%)
SPY Weekly $269.50-271.50 Calls
$269.50 – 2.92-4.42 (+51%)
$270 – 2.57-4.15 (+61%)
$270.50 – 1.98-3.40 (+71%)
NFX, IGCC, TREE, TOPS, DCIX, NAVB, CRON
Earnings-Related Options Ideas
Our regular readers know that quick-strike options trading of plays that have just seen their quarterly earnings releases are among our favorite scenarios. The volatility afforded to us by these events is key to the type of opportunities we are commonly after.
This morning, we have NKE which has untraded-upon earnings reported in the post-market yesterday, and Carmax which dropped its report in the premarket today. We’ve got a set of bearish ideas for NKE and bullish ideas for KMX.
We’ll place the following targets on our watchlist today to monitor throughout the remainder of the week:
CarMax, Inc, KMX Weekly $77-79 Calls
Nike, Inc. NKE Weekly $83.50-81.50 Puts
L.B. Foster Co. FSTR
We also have a longer term idea for the FSTR chain. As you can see on the chart snapshot we’ve included below, the stock is presently exhibiting a strong multiple-bottom.
We’re going to place the FSTR 10/19 $22.50 & $25 Calls on watch in the likely event that a recovery does occur.
MYSZ, TTOO, GPRO, GLBS, TTNP, INNT, DCIX, ONTX