Wrapping Up a Solid Short Trading Week

Options Updates:

We have been tracking a number of options ideas with a June 18th expiration over the past week. Yesterday morning, we signaled interest in the ESTC 06/18 $125-135 Calls, and those went on to put up a nice performance on the day.

It was in Monday morning’s premarket report that we added CAN 06/18 $7.50-10.00 Calls, and we added some gains to our observed totals yesterday as the stock set a new high on the day.

ESTC 06/18 $125-135 Calls
$125: 4.95-7.60 (+54%)
$130: 2.90-4.60 (+59%)
$135: 1.20-2.85 (+137%)

CAN 06/18 $7.50-10.00 Calls
1.71-4.15 (+143%)
$10: .60-2.17 (+262%)

We have had some excellent success in our options speculation of late, and will continue to keep watch over all the June 18th targets we have designated, as well as keeping our eyes peeled for further quick-strike opportunities.

Fresh Options Ideas:
LULU Weekly $317.50-322.50 Calls*
DOCU Weekly $205-210 Calls*
MDB Weekly $280-287.50 Calls*

*Please be advised that trading ‘weekly’ options contracts on a Friday carries an elevated risk, and should only be attempted by seasoned traders!

Extended Watchlist:

Blue Horseshoe Stocks: MIK Options & More

SPDR S&P500 ETF (SPY) – Recap

We went bullish on the SPY in our premarket report yesterday, and thanks to two distinct intraday pushes for the markets, there were opportunities across the board for our highlighted contracts throughout the session.

Those targets were the daily SPY 03/18 $281-282 Calls, and we saw significant moves from all three. The $281.50 Calls traded in a range from .34-1.06 for an overall upswing of 212% while the $282’s traded up from .15 to .58, a gain of 287% (We mistakenly lost exact data for the $281 calls, but the gain opportunities were very similar to those of the other two strike points.) 

The Michaels Companies, Inc. MIK

We also want to signal a set of contracts on MIK, which was the one listing on this morning’s earnings calendar that jumped out to us the most. Michaels posted an earnings beat, but also happens to be trading near its annual lows.

We’re going to approach this like we would any other play with bottom-bouncer written all over it, by signaling some longer-term calls to give ourselves some extra time to see the recovery play out. We’re going to radar the MIK 04/18 $12.50 Calls and monitor their activity in the days and weeks ahead.

Bonus Idea:
STNE 04/18 $37.50-39 Calls

Extended Watchlist:

Blue Horseshoe Stocks: ECYT Recap & More

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

Extended Watchlist: