Whole Foods Market, Inc. WFM – Options Update
Our primary focus for yesterday morning’s premarket report was our running options idea from last week. We were mentioning that the WFM 02/17 $30 and 30.50 Calls had begun to heat up, and we didn’t want to miss out on the activity that seemed ready to kick our idea into effect.
Our assumptions turned out to be accurate, with WFM stringing on another good session performance. The $30 Calls traded up from a low of .54 to .90 (+66%), while the $30.50′s made their way from .20-.42 (+110%).
We also mentioned that a break of the 50DMA at 30.76 for WFM would prompt us to look at contracts with a higher strike price and later expiration, the WFM 02/24 $31 Calls. We did indeed witness a breach of that price point toward the end of the session, and those calls came into play as well, running from 20-.35 for a chance at a nice 75% gain.
Should the solid uptrend WFM has been putting together continue into future sessions, these could be an ongoing item of interest for us.
Zosano Pharma Corp. ZSAN
ZSAN is a play we highlighted on Monday after the company reported that in its ZOTRIP pivotal efficacy study, its M207 transdermal migraine therapy patch met both primary, as well as secondary endpoints.
We mentioned that not only were we going to experience the effect of positive study data, but a technically ripening chart as well, leading us to put the stock on high alert in coming sessions.
It was a good decision, as the stock has really gained momentum this week, putting together some solid sessions. In fact, yesterday the stock closed as the NASDAQ’s top gainer of the day. We’ve watched as ZSAN has traded up from a low of 1.65 to yesterday’s new high of 3.49, representing an intraweek upswing of 112% Cheers to those of our readers who came along for the ride!
Opko Health, Inc. OPK
We put OPK on bottom watch earlier this month, and after a few sessions of further consolidation, the past four trading days have shown some convincing bottom-bounce action.
The stock ultimately found support at the 7.99-level last week, from which it has logged five straight sessions of higher highs and higher lows, reaching 8.66 yesterday. While that action only equates to an 8% increase, it’s the massive gap on the chart to the upside from just under $10 to just over $11.50. We’ll look for the stock to continue to build gradually and maintain the current trend in hopes of seeing a run toward a gap-fill.
FRESH OPTIONS IDEA:
Kate Spade & Co. KATE Weekly $20 and $21 Calls
RSII, MAXD, SRMX, CLSN, TPX