We formulated two options ideas for yesterday morning’s premarket report, and with the help of a gap-and-go session for the overall markets, we saw appreciable gains in each and every contract we had designated for observation.
SPDR S&P500 (ETF) SPY -The SPY is always our go-to when we have a gut feeling about market sentiments, and the number of times we’ve found success with trading its options is practically uncountable at this point. Yesterday’s idea was no exception.
Our targets, the SPY Weekly 292-293.50 Calls performed admirably, providing ourselves and our readers with the following profit chances:
$292 Calls – Range: .91-2.04 – Max Gain: 124%
$292.50 Calls – Range: .60-1.53 – Max Gain: 155%
$293 Calls – Range: .33-1.07 – Max Gain: 224%
$293.50 Calls – Range: .14-.61 – Max Gain: 336%
PVH Corp. PVH
Following a large Form-4 buy on the part of the CEO, we were interested in a longer-term play on PVH, highlighting the PVH 09/20 $75-85 Calls and those were able to get some traction on our first day of observation.
With an expiration still two weeks away, we’ll have plenty of time to realize any further gains, but the first day performance is certainly worthy of mentioning.
$75 Calls – Range: 5.10-7.02 – Max Gain: 38%
$80 Calls – Range: 2.00-3.40 – Max Gain: 70%
$85 Calls – Range: .55-1.25 – Max Gain: 127%
Fresh Options Idea:
PANW Weekly $215-222.50 Calls
DSLV, LAIX, CDTX, SINT, INMD, ELTK, PHUN, ZUMZ, CEI
Ardelyx, Inc. ARDX
We selected ARDX yesterday morning for inclusion in our daily extended watchlist, and to be perfectly honest, our timing couldn’t have been much better. The stock exploded out of the gate, and despite a down day for the markets at large, ARDX bucked the trend with its biggest single session move since 2017.
The stock managed an intraday range of 3.77-5.95 which works out to a daily gain of 58% The stock ended the session with a bullish close 5.82, losing very little of its gained ground That puts it in the class of possible momentum mover, so we’ll certainly continue to keep our eyes peeled for further gain opportunities.
PVH Corp. PVH
Following an earnings beat last week for the owner of the once extremely popular Tommy Hilfiger clothing brand, PVH has been making attempts to come up off of its bottom for a few sessions. Today, we’ve spotted a $10M Form-4 buy from the CEO, and coupled with the positioning of the chart, we would like to signal an options idea for the chain.
Taking all of the current circumstances into account, we are going to be tracking the PVH 09/20 $75-85 Calls, in the days and weeks to come.
SPY Weekly 292-293.50 Calls
OPGN, MIK, PFSI, TBLT, RKDA, PFSI, PVH, KMPH,
Shoe Carnival, Inc. SCVL- Fresh for yesterday morning’s premarket report was an idea for the Shoe Carnival options chain, in response to the company’s post-market earnings beat from Tuesday afternoon. We cited the SCVL 04/18 $35-40 Calls as being most attractive to us, and we met with some solid success on day one.
With the help of a move out of the stock from 35.00-37.72, we saw significant movement from each of our designated strike prices. The $35 Calls saw a low of 1.56 and reached a high of 3.50, which represents a max gain possibility of 124% while the $40s impressively ran 233% from .30-1.00.
A strong close for SCVL indicates a very plausible chance at seeing even more gains in the near-term, so we’ll continue to track the activity here.
Centene Corp. CNC – Along with the SCVL idea, we also floated a longer-term one for CNC that produced instantaneous results. We had targeted the CNC 09/20 $50-55 Calls and despite such a lengthy period remaining until expiration, we saw some excellent volatility there in just a single session.
The $50 Calls traded up from 1.80 to 3.50, a gain of 94% while the $55 Calls ripped a big gain from .31-1.05, which works out to an intraday pop of 239%
Lululemon Athletica LULU
We also want to issue a fresh idea for LULU this morning after the company’s own post-market quarterly financials drop, which included a big earnings beat and some enticing guidance for the remainder of the year. The stock is surging to all-time highs in the premarket, and we don’t want to get caught sitting on our hands when the lid blows.
We’re going to radar the LULU Weekly $162.50-170 Calls, which could end up seeing some serious gain activity over the next session or two.
FIVE Weekly $125-127 Calls
JSDA, PVH, URG,