To close out the week on Friday, we left off with a bearish idea on Weight Watchers, and with the help of a another down day for the markets, a couple of the plays we were tracking in the range of the WTW Weekly $58.50-56.50 Puts, did quite well for us even as other ideas fell by the wayside. . WTW opened just under its daily high of 56.10, and fell all the way back to the $48 range. That allowed for some nice gain opportunities in a pair of our designated targets:
$57.50 Puts – Range: 2.66-9.11 – Max Gain: 242% $57 Puts – Range: 2.54-9.15- Max Gain: 260%
Thunder Energies Corp. TNRG
It has been quite awhile since we mentioned any penny stocks in our reports, especially when you consider that those were our primary areas of focus many years ago. Lately we have become mainly focused upon big board stocks and options plays, but every now and again a penny will catch our eye.
Such is the case with TNRG, a stock we’re interested in tracking for a couple reasons. Along with a tight share structure, we’ve also observed a recent, significant rise in volume. The company has also just satisfied the conditions on some Convertible Promissory Notes.
We have been exceedingly pleased with the recent performance of ENPH, which, despite recent volatility in the markets at large, has been on an incredible bull run for several weeks. We alerted our readers to ENPH’s momentum on the last day of February, and in the two trading weeks since then, the stock has barely skipped a beat.
From a low of 3.07 on the morning of our initial alert, we’ve seen ENPH steadily rise, leading to a new high of 4.74 on Friday. That works out to a very solid run of 54% In the last week especially , the stock showed little sign of slowing down, so we’ll be interested to see where its fortunes take it this week.
Walmart, Inc. WMT – Options Review
We’ve been tracking a wide range of extended-term WMT Calls since the middle of last week, the WMT 04/20 $95-97.50 Calls. We wanted to provide a quick update on the moves we had witnessed by the end of the week.
At the bottom of the range, the $95 Calls ran from .25 to .51 for a gain of 104% At the top, we saw the $97.50′s rise from .11 to .24, a 118% rip. The four sets of contracts in between those two also produced opportunities at commensurate profits. With plenty of time prior to expiration, we’ll leave these contracts on our radar and continue to monitor them as we kick off a fresh trading week.
We called for caution on TCPS in yesterday’s report, indicating our belief that a pullback was likely to soon be upon us. Fridays are often profit-taking days, and after six straight sessions of gains (420% in total at yesterday’s high, from original alert at .0025) it’s difficult for us not to chalk this up as a win and take our hefty profits.
While there is a chance the momentum could carry over to next week, at the very least, we’ll be looking to sell half of our position to lock in our initial investment, and ride the rest of the way on the house’s money.
Fannie Mae and Freddie Mac – FNMA & FMCC
FNMA and FMCC appeared in the extended watchlist both May 15th and May 16th, and since that time, have each made sizable increases:
Both of these have been trading copious volume, so we want to be on the lookout for a continuation of the recent uptrends. In the event of a pullback, we feel there would be significant bounce opportunity.
Solar Sector Watchlist:
It looks as if the solar plays we mentioned on Tuesday are beginning to heat up. We are going to be paying attention to this group of stocks as we head into the long weekend:
Our coverage of Apple Options just got a whole lot more interesting. At the time of our afternoon updates yesterday, the $440 Calls we were looking at ran from 7.75 to 9.05, adding 17% to our gains. What happened following the market close was quite unexpected.
Most of you will have already heard about the big headline now surrounding Apple- because of the company’s exploitation of foreign tax loopholes, it has avoided paying billions in U.S. taxes on profits that it has moved to three shell companies in Ireland. The bills Apple has avoided through what is being referred to by some as ‘tax gimmickry”, could play a role in the reform of US corporate tax law, but it is yet unclear as to whether Apple will be subject to some form of penalty for this financial sleight-of-hand. CEO Tim Cook is set to appear before a Senate subcommittee to respond to the accusations.
Regardless of the final outcome of this latest development, we are readying ourselves for the possibility that Apple may see an interuption in its recent bullish run. As of this moment, it is uncertain as to how this will affect the overall trajectory of the stock, thus we want to remain extremely vigilant. Should this story not have a great effect, we would still be looking at the $435 and $440 Calls. However, if AAPL doesn’t hold support at this morning’s pre-market low of 438.24, we will need to turn our attention to Puts at the same strike prices of $435 and $440.
The key here will be quickly thinking on our feet once a diagnosis of the current conditions can be made.
Yamana Gold Inc. AUY Options Also among yesterday’s Options Trading coverage was Yamana Gold. The AUY $11.00 calls we alerted in our afternoon update report (trading at .60 at the time) ended up closing at their high-of-day (.70), for a quick gain of 17%
TechnoConcepts, Inc. TCPS
TCPS is a momentum play that we are putting on watch today for a possible continuation of its recent surge. The stock broke its 3-year high yesterday, and has been seeing an increase in volume over the past few sessions. We’d like to keep a cautious eye on this one moving forward, as it is currently in Blue Sky Breakout mode.
Evermedia Group, Inc. EVRM EVRM hit a new high of day into the close yesterday. We like the activity we’ve observed since Friday, as the stock has held support off of .0012, and yesterday hit a high of .0018, marking an increase in our possible gains from 33% to 50% We want to continue to watch EVRM moving forward.
Real Goods Solar, Inc. RSOL RSOL also hit a new high into the close yesterday, trading at 6.43 at the time of our alert, and going on to touch 7.17, increasing our possibility for intraday gains up to 57% (From its low of 4.55) With all the momentum in solar stocks recently, we want to keep an eye on the sector as a whole. Here are a handful of related stocks to watch in the field: ASTI, CSIQ, HSOL, FSLR, SCTY, JKS, LDK.