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
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.
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.