Thanks to a choppy day for the markets as a whole, both of the bearish options ideas we formulated for yesterday morning’s premarket report provided opportunities that either approached or exceeded the threshold of double-bag status.
Dominos Pizza Inc. DPZ - Dominos was the primary big name earnings reporter yesterday, and we decided to tag the DPZ Weekly $235-227.50 Puts for possible swing trades after disappointing figures. Those contracts moved considerably right out of the starting gate, prior to the company announcing a massive $1B buyback program, roughly 30 minutes into the session.
$235 Calls – Range: 4.02-7.40 – Max Gain: 84% $232.50 Calls – Range: 3.80-6.00 – Max Gain: 58% $230 Calls – Range: 2.63-4.81 – Max Gain: 83% $227.50 Calls – Range: 1.30-3.60 – Max Gain: 177%
Azz, Inc. AZZ
With AZZ announcing a delay to its Q2 2020 earnings report, which was scheduled for yesterday premarket, we took the initiative to signal some puts there as well. Our targets were the AZZ Weekly $45-40 Puts and those were on a serious run throughout the day.
$45 Calls – Range: 4.20-9.00 – Max Gain: 114% $40 Calls – Range: 1.15-4.30 – Max Gain: 274%
The main earnings reporter this morning is Dominos, and following missed expectations in addition to curtailed guidance, we’;re interested in formulating a near-term idea with a bearish stance.
We’re going to be looking at the DPZ Weekly $235-227.50 Puts for possible swing trades into the the end of the week.
Azz, Inc. AZZ
Speaking of bearish options ideas, we are interested in tracking some puts in the AZZ chain following the company’s delay of its Q2 2020 earnings report, which were previously scheduled for this morning.
Our targets of interest will be the AZZ Weekly $45-40 Puts.
As we very often do, we put forth some fresh options trading ideas for our report yesterday morning, and experienced good fortune with those as the session played out. Our ideas for both Dominos Pizza and eBay each panned out quite nicely, giving traders a solid chance at some serious multi-bag profits on the day.
Dominos Pizza, Inc. DPZ 05/17 $290-300 Calls
$290 Calls – Range: 6.43-16.75 – Max Gain: 160% $300 Calls – Range: 3.22-10.05 – Max Gain: 212%
Ebay, Inc. EBAY Weekly $37.50-38.50 Calls
$37.50 Calls – Range: .61-1.30 – Max Gain: 113% $386 Calls – Range: .33-.95 – Max Gain: 188% $38.50 Calls – Range: .18-.59 – Max Gain: 212%
FRESH OPTIONS IDEAS: Facebook, Inc. FB Weekly $195-200 Calls
Microsoft Corp. MSFT Weekly $129-132 Calls ServiceNow, Inc. NOW Weekly $255-257.50 Calls
Midatech Pharma plc MTP
Following its inclusion in our extended watchlist yesterday morning, MTP made a solid intraday run that we wanted to recap this morning. The stock traded in a range from a low of 2.95 on up to 3.86. That was good for total possible intraday gains of up to 31%
We’ll continue to keep an eye peeled for further gains on MTP, which recently surged to more than $10 just last month. The potential for the kind of extreme volatility we look for is certainly there.
We had a trio of fresh options ideas which we offered to our readers in yesterday’s premarket report, and with a big day for the markets as a whole, every single idea within our designated ranges produced big gain opportunities on the day.
Twitter, Inc. TWTR Weekly $35.50-37 Calls $35.50 Calls – Range: 1.72-5.82 – Max Gain: 238% $36 Calls – Range: 1.52-4.74 – Max Gain: 212% $36.50 Calls – Range: 1.05-4.05 – Max Gain: 286% $37 Calls – Range: .90-3.60 – Max Gain: 300%
Hasbro, Inc. HAS Weekly $97-101 Calls $97 Calls – Range: 4.20-5.75 – Max Gain: 37% $98 Calls – Range: 3.00-4.80 – Max Gain: 60% $99 Calls – Range: 2.56-3.50 – Max Gain: 37% $100 Calls – Range: 1.85-3.60 – Max Gain: 95% $101 Calls – Range: 1.56-3.10 – Max Gain: 99%
Lockheed Martin Corp. LMT Weekly $327.50-$337.50 Calls $327.50 Calls – Range: 2.65-10.33 – Max Gain: 290% $330 Calls – Range: 1.25-8.30 – Max Gain: 564% $332.50 Calls – Range: 1.10-6.30 – Max Gain: 473% $335 Calls – Range: .45-4.60 – Max Gain: 922% $337 Calls – Range: .90-3.30 – Max Gain: 267%
Dominos Pizza, Inc. DPZ 05/17 $290-300 Calls
SAP SE (SAP) 05/17 $125-130 Calls Ebay, Inc. EBAY Weekly $37.50-38.50 Calls
Yuma Energy Inc. YUMA
We also want to circle back for YUMA, which we tagged for observation a week ago today on the 17th. The stock has produced a very solid run in the four sessions since that time.
We have watched as YUMA has run from a low of .151, up to yesterday’s high of .385, which marks a move of 155% on significantly higher volume than the stock is accustomed to seeing.
On Wednesday morning, we were looking at a pair of contracts in the KNDI options chain. We did see multi-bag gains out of those as mentioned in yesterday’s morning report, but perhaps just as big of a story is the move that KNDI stock itself managed in the two sessions since that alert.
From a low of 7.16 Wednesday morning, to yesterday’s high of 9.21, KNDI has managed to rattle off a 29% session-over-session increase. That’s a heck of a two-day swing for a $7+ stock, and will keep our interest as we close out the week.
This move was catalyzed by the US approval of two of the Chinese company’s electric vehicles. The National Highway Traffic Safety Administration gave the domestic go-ahead to KNDI’s Model EX3 and Model K22 electric cars.
Dominos Pizza, Inc. DPZ – Recap
We went bearish with some Dominos Puts yesterday, following a particularly bad quarterly release by the company in yesterday’s premarket earnings dump. Earning and revs were big misses, with same store sales making only a marginal jump.
We signaled our interest in tracking the DPZ Weekly $270-260 Puts and both of those sets of contracts recorded solid intraday moves to the upside, of which traders could have taken advantage. The $270 Puts ran from 12.02 to 20.50, marking a 71% rip, while the $260 surged even more, trading in a range from 4.99-12.84 for an intraday gain of 177%
TTD Weekly $170-175 Calls
ROKU Weekly $53-56 Calls