Eleven BioTherapeutics, Inc. EBIO
Out of four focal points for yesterday morning’s premarket report, three of them worked out very nicely. From the stock side of things, we had EBIO, which we designated as a potential momentum play after noticing it picking up steam in prior sessions.
Our hunch was good, as the stock ran from a low of 2.31 to 2.955 (+28%) on roughly nine times its monthly average volume. It was a relatively modest gain, yet we did see a temporary breach of the 50DMA as well as a strong close at 2.78. It was a solid enough performance to warrant further observation.
MannKind Corp. MNKD - We drew attention to MNKD on Wednesday morning and just want to provide an update on its excellent progress so far. In the past two sessions since then it has traded up from a low of .44 to .68 (+55%) in two bullish sessions. We’ll be looking for a possible continuation of that trend.
The other two winners from yesterday were both successful options ideas that we formulated on the heels of strong earnings reports, and the gain opportunities there were quite a bit larger.
We’ve come to routinely expect huge multi-bag intraday runs when we hit on a good post-earnings idea, and that’s just what we got from every single contract we signaled.
Macy’s, Inc. M – Weekly $38-41 Calls
$38 Calls – Range: 1.52-3.85 – Max Gain: 153%
$38.50 Calls – Range: 1.27-2.90 – Max Gain: 128%
$39 Calls – Range: 1.00-2.97 – Max Gain: 191%
$39.50 Calls – Range: .81-2.25 – Max Gain: 178%
$40 Calls – Range: .50-1.90 – Max Gain: 280%
$40.50 Calls – Range: .30-1.47 – Max Gain: 390%
$41 Calls – Range: .15-1.16 – Max Gain: 673%
Shake Shack, Inc. SHAK – Weekly $35.50-37 Calls
$35.50 Calls – Range: .39-2.00 – Max Gain: 413%
$36 Calls – Range: .37-2.62 – Max Gain: 609%
$36.50 Calls – Range: .35-.77 – Max Gain: 120%
$37 Calls – Range: .18-1.90 – Max Gain: 956%
Fresh Idea - Nvidia Corp. NVDA – Nvidia beat on earnings in a post-market release yesterday, and to correspond with the activity we’re observing here in the premarket, we want to highlight the NVDA Weekly $77-80 Calls* for potential daytrades.
*Our regular readers are well aware of the warnings we post every time we issue an alert, but for everyone just joining us, please be aware that trading options contracts with a weekly expiration on a Friday is a highly risky proposition, and should only be undertaken by expert traders!
CHMD, DNRG, FNMA, FMCC, LLEN, SRCH,