We’re looking at one of the biggest players in the Halloween candy game in Hershey as we kick off a fresh trading week. The company reported its Q3 earnings on Thursday, and despite a frosty reception from Wall Street, we are liking the look of this play.
The company asserts that it is on a good path, having had what the CEO calls a game changing year. While the stock did see its biggest daily loss since 2016 on Thursday following the report, it did not turn into a multi-day slide. Coupled with what looks to be another rebound day for the markets at large, and we’re interested in signaling a few HSY Calls.
We’ll place the HSY Weekly $102-104 Calls on watch this morning.
Nutanix, Inc. NTNX 01/18 $42.50 & $45 Calls
SPDR S&P 500 ETF (SPY)
On Tuesday, we noted that with such a sharp and rapid downturn in the markets, that a rebound was certain to be in the cards for the SPY. It led us to signal interest in the SPY 10/31 $275-277 Calls, which will certainly be in play today as the SPY is gapping up big this morning in the premarket.
We’ll be back tomorrow morning with a recap of what is likely to be a cleanup session for these plays today.
We’re seeing a bit of a rebound in the markets this morning after they once again got crushed yesterday. Partially due to a better-than-expected economic report on Durable Orders, we’ll look for the highest profile companies with fresh earnings out that appear set to move this morning.
TSLA and MSFT both dropped their reports in after-market hours yesterday, and look to be our most promising potential targets today.
The tech sector as a whole was among the hardest hit in the recent spate of losses for domestic stocks, with many, if not most of its players being beaten back to unsustainably low levels, so the timing is actually quite good for some solid movement off of these earnings reports.
We expect a market recovery to provide us with plenty of chances to take advantage of all of these underpriced stocks as they rebound in the days and weeks ahead.
TSLA Weekly $310-317.50 Calls
MSFT Weekly $104-107 Calls
Late last week, we selected a few contracts in the Facebook and Twitter options chains for longer-term ideas. The FB 10/12 $182.50-190 Calls, and the TWTR 10/12 $35 & 37.50 Calls. While they haven’t blown their lids quite yet, we wanted to reiterate our interest in tracking these over a longer time period.
The somewhat nominal gains achieved so far are as follows: FB 10/12 $182.50′s: .53-.80 (+51%) | $185′s: 40-.54 (+35%) TWTR 10/12 $35′s: .33-.52 (+56%) | $37.50′s: .28-.40 (43%)
We’ll continue to track these ranges, as there is still plenty of time for them to begin realizing their full potential. What we’ve seen to this point may be just the beginning.
To add to our social media related options ideas, we also see SNAP coming off of a recent bottom, and will signal the SNAP 10/05 $9 & 9.50 Calls for observation as the stock attempts to mount a recovery of recent losses.
With a major category-4 hurricane currently inbound for the Carolina coastline this week, we’re also going to highlight some plays in Home Depot and Lowes Home Improvement, which tend to see surges in the wake of storms big enough to require extensive cleanup and repairs. According to all predictive models, Hurricane Florence definitely fits that bill.
We’re heading into another patch of earnings releases, and we’re going to make our main focus today center around the formulation of some options ideas. We’ve got three chains targeted, two of which having just reported their quarterly earnings (CSX Corp. CSX and Morgan Stanley MS), and one with huge Form-4 buys coming this week in Walgreens Boots Alliance, Inc. WBA.
As we usually do for options ideas on the heels of an earnings report, we’ll go short term for CSX and MS, and for WBA, select some with an expiration a little further out.
It was just yesterday morning that we were patting ourselves on the back for our February 22nd alert on RXMD, which gave us and our readers a chance at getting into this one as low as .0663.
The stock continued on to see an increase of just under 100% as of yesterday’s premarket report, and then trading activity during the session allowed the stock to cross that double-bagger threshold.
To open up the week,RXMD traded from .1171 up to a new high of .165, marking an intraday rip of 41% and an overall increase of 149% over our initially observed low.
We also have a trio of stocks that have recently reversed off of their relative bottoms, and could be in line for a more sustained recovery. We’re going to want to track a few ideas for extended term options plays in Walmart, GM, and Disney.