Endocyte, Inc. ECYT
Our first order of business this morning is to review the recent performance of ECYT, which we initially slated for observation in our report on February 28th. At the time, the stock had been slowly gaining momentum for much of February, and it looked ripe for a more pronounced breakout.
That day, as the stock was trading for as little as 4.51, we witnessed an explosion in volume that has precipitated a very impressive run, persisting for over two weeks up to the present time. Yesterday’s session brought a new high of 11.54 in ECYT, which marks an upswing of 156% in a relatively short time frame.
Valeant Pharma International, Inc. VRX
On Monday morning, we came up with some options ideas for VRX, which we noted was “ready for a bottom bounce”. We also made reference to a huge Form-4 buy of $108.8M came in as well, which led us to postulate that “for now the stock has gone as low as it’s going to go.”
We couldn’t have been any more spot-on in our assessment of VRX, and the result has been a solid performance for the short-term calls we put on watch, the VRX Weekly $15 & $15.50 Calls. The $15′s ran from .65-1.15 for a gain of 77%, while the $15.50′s moved from a low of .30 to .71, an increase of 137%
We had some longer-term ideas as well which we will likely come back to in an upcoming report, as it appears VRX will continue to head up. On that note, we’ll also look to roll up our strike prices on the weekly calls to the $16 & $16.50′s.
Fresh Options Idea:
Walmart, Inc. WMT 04/20 $95-97.50 Calls
RKDA, EXPR, NCTY, VYGR, TYME, MARA