We included a pair of options ideas in yesterday’s premarket report, and scored multi-bag hits on both accounts.
We were banking on a third straight bullish day for the markets with our SPY idea, and betting that the huge premarket gap-up on SFIX was unsustainable. In both cases we were correct, and it provided us with the following opportunities:
SPDR S&P500 ETF (SPY) Weekly $283-284 Calls
$283 Calls – Range: .98-2.81 – Max Gain: 187%
$284 Calls – Range: .57-2.00 – Max Gain: 251%
Today we will be looking to roll up our strike price on the SPY and tracking the SPY Weekly $285-286 Calls*.
Stitch Fix, Inc. SFIX Weekly $31-30 Puts
$30 Puts – Range: 1.40-3.22 – Max Gain: 130%
*Never trade weekly options on Friday, unless you are an advanced level trader with access to disposable funds!
At Home Group, Inc. HOME
HOME just missed on earnings and received an analyst downgrade, but on the hunch that the resultant gap-down was based on overreaction, we’re going to radar a set of contracts in the HOME chain to monitor in the event of a rebound. There is an enormous gap now sitting on the chart just waiting to be filled. We’ll have plenty of time to see that happen with the HOME 09/20 $8-10 Calls.
AMPG, FTD, SNY, RWLK, LJPC, HAIR
At Home Group, Inc. HOME
On Friday morning, we closed out our premarket report with a fresh options trading idea for the HOME options chain, with the HOME 04/20 $30 Calls.
The idea paid instant dividends for our readers and ourselves as those calls traded in a very solid range from 1.20-3.75 on the day, giving us the chance at intraday gains of up to 213% There’s obviously plenty of time to continue tracking this play, but as it is, we’re extrmely pleased with its single session performance on Friday, which registered as the sixth biggest gainer on the NASDAQ.
Aytu BioScience, Inc. AYTU
Another target we selected last week for a bottom-watch play after noticing the chart setup and a string of insider buys, was AYTU. While it didn’t exactly blast off yet, we wanted to go over the move it did make, and reiterate our interest in tracking this play as we kick off this short trading week.
Subsequent to our alert, the stock traded in a range from .4118 to .51, a modest 24% rise, and still has tons of room to run. In fact, the company will need to promptly reach and maintain a 1.00 PPS or risk having NASDAQ forcibly de-list its stock.
AVID, DBX, GERN, JAGX, SRNE, VII, VKTX
Pareteum Corp. TEUM
Just yesterday, we were commenting on the large number of stocks we’ve recently tracked for large gains despite already trading at more than a dollar per share. We’ve been seeing OTC-type gains from NYSE and NASDAQ plays, and TEUM is another good example of this.
The day after our mention of TEUM in our morning report from February 8th, we observed a low of 1.72 in TEUM, and it hasn’t looked back since. Yesterday, the stock reached a new high of 3.59, representing a six-week double-bag swing of 108%
Geron Corp. GERN
GERN, another of our calls to make a solid six week run, added another new high yesterday, just after our morning report in which we outlined its prior performance. The stock had already showed us a move from 2.025-5.00 (+147%).
Yesterday’s trading range took it from a low of 5.08 to a new high of 6.68. That works out to an intraday pop of 31% and increases our total observed range to an impressive 230%
Nike Inc. NKE – Fresh Options Idea
Nike posted a beat on earning sales and revs yesterday post-market, and is up in early trading today, so we’re definitely going to want to put a range of calls on watch as we close out another trading week.
We’ll be tracking the NKE Weekly $66.50-68 Calls, but remember, NEVER attempt to trade weekly options on a Friday unless you are an expert level trader with disposable funds.
At Home Group, Inc. HOME 04/20 $30 Calls
ITRK, ABBV, CLVS, SGH, GSK
Dollar General Corp. DG
First up this morning is a look at DG, which revealed its Q3 earnings report early this morning, and appears to be gearing up for some continued bullish activity, for which we’ll want to formulate an options trading idea.
The stock has been in a general uptrend for many months, seeing its annual lows in June, and trading in a general upward channel ever since. DG is gapping up roughly 5% in premarket trading, and we’re going to look for action in the DG Weekly $93.50-96 Calls today and possibly tomorrow as well.
This is another stock that has put up a good performance since late spring. After seeing its own annual low at the end of May in the $66 area, LULU has recently breached the $90 mark.
That upward climb could continue on the heels of what was a solid beat on both sales and earnings in the post-market yesterday, as well as boosted sales guidance. When coupled with the $200M share repurchase the company has just authorized, and we have another excellent candidate for some options trading ideas. In this case we’re interested in tracking the LULU Weekly $72.50-74 Calls.
ROX, HOME, VTGN, IGC, MYO, CRSP, TLRD