We kept pounding the table on SPY options to kick off the week yesterday morning, following some of the largest single-session moves we’ve ever witnessed came to the contracts we were tracking on Friday. TheWeekly $191.50-193 Calls served up the chance at earth-shattering intraday gains ranging from 5966-26000% and while our ideas for yesterday obviously didn’t produce figures like those, the potential gains were still exceptional in and of themselves.
Based on the premarket activity mixed with our own expectations of how market activity would unfold, we specifically targeted the SPY Weekly $194-197 Callsand were very pleased with the ensuing actionin every set contracts:
$194 Calls – Daily Range: 3.12-5.07 – Max Gain: 63% $194.50 Calls – Daily Range: 2.91-4.57 – Max Gain: 57% $195 Calls – Daily Range: 2.42-4.15 – Max Gain: 71% $195.50 Calls – Daily Range: 2.19-3.77. – Max Gain: 72%
$196 Calls – Daily Range: 1.90-3.35 – Max Gain: 76% $196.50 Calls – Daily Range: 1.59-2.95 – Max Gain: 86% $197 Calls – Daily Range: 1.33-2.60 – Max Gain: 95%
The markets have now seen five consecutive days of a strong rally, so we’d expect to see a brief consolidation and course correction. In that event, we’ll look for the SPY to hold support in the $195-range in order for us to remain interested in the above-mentioned weekly contracts.
Lululemon Athletica, Inc. LULU
The last time we formulated an options-trading idea for LULU was roughly a year ago, and at that time we caught a single-session move of over 400%. We want to revisit this play again today; this time, with a longer-term idea. The stock itself is attempting to record a sustained rise off of recent lows, and the chart appears to be ripening toward that eventuality.
The idea that we’re going to submit accordingly is going to be the LULU November 6th $53 Calls (Last Trade 1.25) It’s quite feasible that we could see a return on the chart to the $56-range by the expiration date. That would push those contracts three dollars into the money, and would likely produce double-bag gains, so we’re going to place them on an extended watch.
We’re going to start off this new trading week with a new item of interest in MBHC, a stock with an interesting backstory that began to build some nice momentum on the chart toward the end of last week.
The main focus of the company at the moment is the impending launch of its new mobile streaming app, known as Whirld. It is intended to be the first truly real-time, interactive, mobile video broadcasting utility, and has been approved for sale in the Apple APP Store (iOS) and the Google Play Market (Android).
The launch was originally slated for late this spring, but was temporarily delayed for extra time in beta testing, and to upgrade to a global communications platform that will allow for more expedient updates and enhancements once the app is in operation. Per the release which revealed that announcement, we are now less than a month away from seeing all of the necessary changes implemented and having the app hit stores.
To facilitate all of the progressive changes at the company and give the Whirld app its best chance for success, MBHC brought in two industry heavyweights with the collective knowledge to get it off the ground; Jeff Marcus, and Alan Rambam.
Jeff Marcus has had his hand in billions of dollars worth of IT startups over the years, building himself an extremely impressive resume`. From his early days as a software engineer for IBM and formulating network solutions for UPS and KPMG, he began accruing the knowledge required for an ambitious endeavor such as the Whirld app. His career led him to high-level networking positions at companies like 24/7 Real Media (sold for $650M) and DoubleClick (Google buyout totaling $3.1B). He’s had a front-row seat for the development of the mobile age, and brings all of that experience and know-how to MBHC.
Alan Rambam is a social media, advertising, and analytics expert who previous job experience file is also jam-packed. He was one of the youngest staff members in the Clinton Administration, and would go on to found Shine, Inc. were he would develop well-known social campaigns and charities such as the MTV Fight for Your Rights Campaign, and the Muhammad Ali Scholarship Fund.
On Friday, MBHC enjoyed a surge in momentum in the wake of an exciting press release that really ramps up Whirld’s extreme potential as an app. In an global deal signed with none other than Twitter, MBHC has secured itself as the the home for Electronic Dance Music (EDM), a rapidly growing genre,to provide the most shared, real-time EDM concert footage on Earth. It includes unfettered access to air in real-time every piece of content placed on Twitter from some of the worlds biggest EDM Festivals (including Tomorrowland, Electric Daisy Festival, Ultra, and Electric Zoo). This is a significant proposition, with EDM Festivals raking in roughly $4.5B annually; no other genre of festival music in the world can make such a claim. EDM has a huge following in the younger generation, which is a key demographic being targeted by MBHC for the Whirld app. >>> VIEW PR
As we said, the MBHC chart has also recently awakened, with a good bit of momentum building up at the end of last week. We’ve prepared a corresponding video presentation for your viewing convenience:
Those of our followers who participate in our daily live traders chats were given advanced notice on our call of MBHC as you can see by the following screen snap taken right at the market open. Those participants had a chance at up to 172% in intraday gains as the stock ran from .0039-.0106. It was a great example of why we freely invite all of our subscribers to take part in these daily Skype-facilitated chats. Just send a contact request to username ‘stocksumo’ to join in!
Options Recap – Friday’s Huge Winner
We can’t go without mentioning the top-notch options ideas we offered our readers in Friday’s premarket report. In the midst of taking credit for the previous session’s ideas we had on NFLX (One of which ran more than 3800% in a single session!) we presented GOOG as a good options-trading candidate and recorded a target range. Specifically, we called attention to GOOG Weekly $640-655 Calls. As everyone should be aware, GOOG had a landmark session after the earnings beat;
impressively gaining more than 16% as it traded in a range from 645.00 – 674.47.
As a result, and for the second consecutive day, our options ideas went haywire and yielded up the chance at some excellent profits. Here’s a breakdown of the moves that were made by those hot-ticket contracts:
$640 Calls – Daily Range: 8.80-29.00 – Max Gain: 230% $642.50 Calls – Daily Range: 9.40-27.40 – Max Gain: 191% $645 Calls – Daily Range: 6.20-24.90 – Max Gain: 302% $650 Calls – Daily Range: 3.90-23.56 – Max Gain: 302% $655 Calls – Daily Range: 2.33-18.50 – Max Gain: 694%
For your convenience, we also prepared a video highlighting the great moves we saw as well, so check it out below, and have a great start to the week!
More often than not, when highlighting a stock that has recently recorded a new 52-week low, we’ve had very good fortune- yesterday’s premarket tag of MILL was no exception. It had just registered its annual bottom on Tuesday, and it set us up to bear witness to quite a respectable rebound.
From a low of .26, MILL surged as high as .38, marking an intraday pop of 46% and it happened on just over six times the 3-month average trading volume.
The move came in conjunction with an interesting sequence of events-Tuesday the company announced its significant doubt of its ability to continue as a going concern, which is what brought it to a new 52-week low. We caught it on the news scanner yesterday with a more positive message, regarding the receipt of a $33M tax credit from the State of Alaska and a potential loophole on the company’s debt in the form of a possible loan.
From this point forward we’d suggest an added note of caution pertaining to MILL on account of these somewhat mixed signals. The company is still in danger of filing for bankruptcy, but for our purposes, it turned out to be a nice mid-week bottom-play.
NuGene International, Inc. NUGN
We also wanted to point to another PR that hit the wires yesterday on a stock that we’ve been monitoring this summer. Back on June 15th, we tagged NUGN for observation and watched as it ran from 2.67-3.88 (+47%).
This week, after pulling back to find support at a low of 2.55, NUGN is rebounding back past the $3 mark. We’re going to want to watch it into next week, especially after the exposure that it’s set to receive this weekend.
Per a PR released yesterday the world-famous Kathy Ireland, whose namesake products NUGN distributes, will be doing a special on Fox Business Network (Sunday, 5:30pm ET) and Bloomberg International (Sunday, 8:30am CET, 3:00pm HKT, and 10:30am CDT). It’s called Worldwide Business with kathy ireland®and it will introduce a new line of stem cell-based skincare products.>> VIEW PR
Options Recap
It may be hard for some of our newer subscribers to believe, but most of the options calls we made yesterday morning ended up yielding chances at double-bag gains! Our regular readers won’t be surprised at all, as we routinely formulate such opportunities for options daytrades.
FitBit, Inc. FIT
All of the FIT Options ideas we signaled (Weekly $45.50-48 Calls) yesterday gave us the chance for notable gains, with the most significant action coming from the $46-48’s.
The $46 Calls initially ran 192% from 1.06-3.10, then dipped to a low of .79 before rebounding to 1.85 for an added 134% swing.
The $47’s first burst carried them from .96-2.24 (+133%) dipped to .45 closed at 1.20 (+166%)
$48 Calls went on a 93% run from .88-1.70, and pulled back to .40 before ripping back to .75 for a chance at an extra 87% gain.
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Netflix, Inc. NFLX
Our ideas for NFLX Weekly $100-105 Calls are figuring to turn out quite nicely as well before the week is out. In the image below we can see the closing prices on all of those contracts; with NFLX trading above $110 in the premarket, we expect to see all of those prices increased significantly as they’re pushed deeper into the money. We’ll be on the lookout for dip-and-rip scenarios for the remainder of the week and may consider rolling our strike prices up closer to the money, perhaps somewhere in the 107.14-111.43 range in the event the uptrend continues.
We had a large wave of subscribers over the weekend, so before we get started, let us take this opportunity to welcome our new members! Be sure to catch our reports on time every morning within 20 minutes prior to the opening bell- in many cases it can be the early bird that gets gets the worm!
Vascular Biogenics, Inc. VBLT
We first placed VBLT on our watchlist on March 25th, and on that day witnessed a moderate intraday move of 26% as the stock ran from 6.25 to 7.86.
That was followed by an extended period of consolidation which persisted throughout the month of April. Eventually the stock established support in the mid-$3.00 range early last month, and from there it has been quite the performer.
There was a massive move from 3.60-7.09 (+97%), followed by a dip back to 4.86 (05/20), and to end the short week on Friday, the stock touched a new high of 8.70, representing a 79% swing. That high has been surpassed in premarket trading this morning as the stock breached the $9-mark on word of some positive data from one of the company’s drug trials (Link below). We’ll continue to follow along with the action as we kick off this fresh trading week.
Here’s a video pointing out the characteristics of the current VBLT Chart:
PVSP was a thousand-percent-plus gainer for us earlier this year, and we want to return focus to the stock once again this morning.
Subsequent to our alert on January 20th, we watched as this play exploded from an absolute bottom of .0001 in February, all the way up to .003 at the end of April, an incredible 2900% span.
We’re looking at the stock once again this week as we noticed it recently coming down to find support at its 200DMA of .0006 (05/21), and since then it appears as if PVSP is gearing up for another potential upswing. It has been establishing higher lows, and could be ripe for another rip, so we’re keeping our eyes open.
We created a video chart for PVSP as well:
Oncothyreon, Inc. ONTY
We made mention of ONTY as a morning gapper in our report dated May 22nd, and from a low of 2.80 that day, the stock has made quite a bit of forward progress. It hit 3.66 (+31%) two sessions later, followed by only a slight pullback.
We’re watching this morning as the stock is gapping up once again, having already chancged hands for as much as 5.35. That represents a 91% increase from our observed low, and further draws our interest in following the action from here.
Auri, Inc. AURI
Despite a big pullback into the close, AURI did not disappoint in its early performance on Friday. From .0052 the stock surged as high as a penny before tapering off, registering an intraday swing of 92%
We won’t disregard the possibility of a bounceplay once the stock establishes firm support, so we’ll be on the lookout for that.
Extended Watchlist: CTIC, OXGN, CLDN, IMGN, EXEL, ANR, ESI
PBR has continued to perform this week after we caught it coming off its 52-week lows two Thursday’s ago. At that time one of our main areas of interest was the 05/01 $6.50 Calls, which we subsequently observed trading at a low of .22. This week they’ve attained a high of .71, marking off a tidy 222% move.
The last time we touched upon PBR options on Monday morning, it was in the process of pushing even higher, so we suggested the possibility of rolling up our strike price to both the Weekly and May 1st $7 Calls, and that idea turned out to be a good one as well.
We’ve witnessed a trading range on the Weekly $7’s from .06 -.25, a whopping 316%, while the May 1st $7’s enjoyed an 87% run from .30 to .56.
Yesterday morning the company had announced it had been selected as the leader of a $45M DARPA program to develop practical treatments for the Ebola virus. It fueled a continued rise off of recent lows, and this morning’s news could contribute to that as well. >> READ PR
INO heralded positive results from one of its studies, a DNA-based immunotherapy for the treatment of head and neck cancer. According to the CFO, the “initial data set from Inovio’s first cancer study provides encouraging evidence that we are on an important path to better optimized immunotherapy products.” >> READ PR
We’ll continue to keep watch over INO in the wake of these major developments.
Molycorp, Inc. MCP
MCP started showing up on our scanner back on March 23rd and 24th, when it was trading around .38. It retraced back to its 52-week low of .32 on the 27th.
After reappearing on our extended watchlist yesterday, it has traded as high as .62 in the premarket today; from a low of .484 that’s a 28% move up.
At .62, MCP had shown us a 94% overall move from its ultimate low set just the week before last. With gold and other precious metal prices on the rise again, we’ll continue to track MCP for more potential gain opportunities.
Rite-Aid Corp. RAD
We also wanted to make a quick mention of RAD. We tagged the stock for tracking back on December 4th and on that day we observed the lowest price the stock has traded at since then (5.48).
Since that time the stock has crept (and sometimes leaped) its way up the chart; it broke its 50DMA in early March, and managed break the $9-mark last Thursday, and then again yesterday. At Thursday’s high of 9.07, we had witnessed a total gain of 65%
Wall Street analysts are giving RAD high marks, and the stock is also receiving a 96% Overall “Buy” Rating at BARCHART.COM so we’ll certainly want to keep a close watch on RAD moving forward in the event that it sustains the bullish patterns it has been exhibiting over the past several months.
