CDNL is a stock that we’ve had on our radar since last month, and over the past several sessions it has built itself a heck of a chart, registering higher lows on each of the past six trading days.
We reminded our readers of our interest in CDNL again this week, re-mentioning it on Tuesday, and in the three-session span since that reminder went out, we’ve seen a 146% swing from .0057-.014. Based on a number of factors, we feel that there could be something left in the tank for this play, and we will continue to track its progress provided it can maintain support at or above the current 50DMA of .008 on any upcoming consolidations.
As we’ve highlighted on the following snapshot, the RSI on CDNL just breached into the power zone, while the MACD is giving off a bullish signal as well.
SRPT is gapping up in a big way this morning, and thus we’d like to formulate an options idea to possibly take advantage of the setup we’re seeing.
The stock has already traded as high as $34-range in the premarket, and if it can hold above the 50DMA which we’ve pointed out on the chart below and continue its ascent, we’re going to be very interested in the Weekly $32-35 Calls and their potential for big moves today.
*We always like to remind our subscribers, especially those that have just joined our ranks, of the inherently elevated risk/reward dynamic that comes with trading weekly options contracts on a Friday. As we’ve explained in the past, time-decay starts to become a big factor with expiration coming at the closing bell- premiums evaporate, volatility naturally increases, and some huge opportunities for quick-strike swing trades can present themselves.
We’ve had success with BONT in the past, and recently the stock has taken an epic pounding, culminating in a cliff-diving session yesterday. Whenever we spot activity like this, we go into vulture mode, carefully observing for a bounce signal. A correctly timed bottom here could result in a prime rebound play, so we’ll keep a keen watch over BONT today, and into next week.
BWMG, CHIT, CAPV, DBMM, IDTA,