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