Closing Out Another Week of Success
We’ve been hitting on our options ideas left and right this week, as usual. There hasn’t been many ideas that we’ve formulated which didn’t require us to turn right back around the following day and report big gains. This morning is no exception to that pattern.
Yesterday in our premarket report we submitted ideas for the options chains of both RAD and DRI, and in both cases, we had the chance to score multi-bag gains. The potential profits were as follows:
RAD Weekly $9.50-10.50 Calls
$9.50 Calls – 1.78-2.81 – Max Gain: 58%
$10 Calls – 1.12-2.42 – Max Gain: 116%
$10.50 Calls – .99-1.88 – Max Gain: 261%
DRI Weekly $115-110 Puts
$115 Puts – 2.67-5.90 – Max Gain: 122%
$110 Puts – .15-1.07 – Max Gain: 148%
Fresh Options Ideas:
Winnebago Industries, Inc. WGO Weekly $50 Calls*
Scholastic Corp. SCHL Weekly $35-40 Calls*
SPDR S&P500 (ETF) SPY Weekly $319-320.50 Calls*
Tesla Inc. TSLA Weekly $405-412.50 Calls*
*Never trade options with a weekly expiration on Friday unless you are an advanced level trader with access to disposable funds.
MDGL, FCEL, NLNK, IGC, NAK, ALEC, FTFT, AVCO, LXRX, OCGN
Acuity Brands, inc. AYI – Options Update
We took the opportunity to jump on some AYI calls following a poor showing from the company’s Q3 financials. We felt that the blow taken by the stock in the previous session was an overreaction, and decided to radar a couple of sets of contracts in the AYI chain to correspond with what we assumed would be a rebound from this burst of overselling,
Our targets were the AYI 07/19 $125-130 Calls. We banked on a course correction to provide us with a push and things turned out just as we hoped they might. The stock traded in a daily range from a low of 129.90 and cruised as high as 136.74. That allowed for some very respectable intraday gain opportunities for us, and we will want to continue to monitor these in the sessions ahead.
The $125 Calls ran from 6.10-11.55 for a daily rip of 89% while the $130’s went from 2.85-7.20, a gain of 153% A full two weeks remain before these contracts expire.
KB Homes KBH – Recap
We also signaled our interest in some KBH calls last Thursday. Since that time, the stock has been slowly creeping upward, and we’ve realized the potential for some very nice moves in our KBH 07/19 $26-27 Calls, which experienced their lows on the morning of our initial alert, and reached new highs yesterday.
The $26 Calls ran from .35-1.05, for an even 200% burst, while the $27’s fared slightly better. Those produced a move from .15-.47, signifying a run of 213%
ADOM, NAK, HSGX, TSU, CETX
Acuity Brands, inc. AYI – Options Idea
After a lackluster Q3 report, AYI took a gut punch yesterday, but began to recover before the day was through, and appears to want to continue to course-correct today.
We are going to radar the AYI 07/19 $125-130 Calls. Even if this holiday shortened week comes to a predictably quiet close and doesn’t provide a ton of activity, we’ll still have plenty of time to get results before the 19th.
comScore, Inc. SCOR
We’ve found what appears to be a prime bottom-watch candidate in SCOR. The stock is egregiously oversold at the present time, and has managed a couple of positive sessions this week.
The volatility potential on this stock is high. It’s not unreasonable to think that it could return to the $10 level or better over a period of several weeks or perhaps even months. We’ll designate this as a longer-term recovery play.
TBLT, NAK, ZIOP, FCEL, SNSS, OTLK