As a result of this development, KRFT is gapping up monstrously in the premarket to the tune of more than 30% Generally when we see a stock soar on news like this, our first instinct is to continually scan for a dip-and-rip scenario once the session commences. When the rip does occur, we’re going to be looking to April $75-85 Calls for intraday options trading possibilities.
Kraft Foods, H.J. Heinz to Merge (Wed 8:18AM EDT)
Social Media Sector on Watch
Despite uncertainly over whether interest rates will be raised this year causing a general downturn in the markets, social media stocks appeared to be an exception yesterday.
We’re always looking for trends to exploit for options trading, and should Facebook, Inc. FB, Twitter, Inc. TWTR, and LinkedIn Corp. LNKD continue their hot hand this week, we could see some nice action in the following contracts:
FB Weekly $84-86 Calls
TWTR Weekly $50-52 Calls
LNKD Weekly $260-265 Calls
Vascular Biogenics, Inc. VBLT
VBLT is another gapper this morning that has surged in the premarket following the company Q4 earnings release. The stock briefly spiked to its 50DMA of 8.65 in early trading, and appears as if it will open in the 6.50’s.
We will look to see VBLT re-break the $7-mark once the session kicks off, as there is a large gap on the chart as we point out below, the filling of which would make for some highly notable gains. It’s definitely a stock we want to keep on our radar as we cruise through mid-week.
Extended Watchlist:
KFX, FXCM, ONCY, BLRX, MRNS, GRPN