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%
Fresh Options Ideas:
SPY Weekly $289.50-291 Calls
QGEN 11/15 $28-30 Calls
OCGN, AOBC, TMDI, EROS, ACRS, TMDI
Dominos Pizza Inc. DPZ – Options Idea
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.
CBNT, PTAH, NGM, WKHS, RGLD, PHUN, NIO
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.
ARCI, RWLK, LAZ, CTRV