Fresh Options Ideas
As we head into the end of another excitement-filled week, we’ve zeroed in on some options ideas for daytrading that could yield positive results. Friday is always an interesting time to trade weekly options; premiums are lowered significantly due to time decay, creating just the kind of high-risk, high-reward environment for which we are always on the lookout.
We have extensively used the options chains of all of the following high-profile stocks to bank enormous gains in the past (PBR Archive, AAPL Archive, NFLX Archive):
Netflix, Inc. NFLX – When we last touched upon NFLX the stock was trading in the high-$300 to $400 range, and since then it has made a monstrous move to its current base in the high-$500’s.
The stock appears to want to gap up this morning into the $600+ range; we’re going to be on the lookout for a dip-and-rip scenario, and as usual, we’ll provide a range where we think the heaviest action will fall- in this case we’re going to monitor NFLX Weekly $595-612.50 Calls.
Strategies may require adjustment on-the-fly as trading kicks off; we’ll start off with in-the-money calls, keeping in mind that we’ll need to roll up our strike prices, should the stock continue to run.
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Apple, Inc. AAPL – It’s been some time since we ventured into Apple territory. To close out the week, we’re going to be monitoring the Weekly $128 and $129 Calls for potential quick-strike opportunities.
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Petroleo Brasiliero S.A. (Petrobras) PBR – This old-time favorite has been on a steady incline since March, and recently has been flirting with the $10-level. That has made the PBR Weekly $10 Calls good for intraday flips all week long, and we wouldn’t be surprised if the same were true today. We’ll need to see the stock hold support at or above 9.85 on any pullbacks in order to remain interested.
MagneGas Corp. MNGA
We want to keep a sharp watch over MNGA which is gapping up on the heels of this morning’s big announcement of a contract with a branch of the US Military.
The company also launched a new website earlier this week that you can check out here: www.magnegas.com
- US Navy Purchases First Order of MagneGas (Fri 8:00AM EDT)
Banro Corp. BAA
We also want to quickly pat ourselves on the back for the timely tag of BAA that we placed in yesterday’s extended watchlist. It was the first time the stock has appeared in our reports in almost a year, and it produced the chance for a nice intraday gain.
From an early low of .2991, BAA traded up to a high of .353, a respectable 18% jump. We’ll keep our eyes on this one into next week.
Extended Watchlist:
PTX, FRO, OSUR, QKLS, BSQR