Friday’s Options Ideas
Our closing thoughts in Friday’s premarket report were in regard to the activity we were seeing in the VXX. It was trending several percentage points above its 50DMA and we went ahead and signals our interest in tracking the VXX $20-22 Calls, with an accompanying idea of SPY $206-203 Puts.
For the second Friday in a row, the options chains of this ETN and ETF provided us with the chance to pull down huge single-session gains:
$20 Calls – Trading Range: 1.09-3.74 – Max Gain: 243%
$20.50 Calls – Trading Range: .75-3.20 – Max Gain: 327%
$21 Calls – Trading Range: .44-2.69 – Max Gain: 511%
$21.50 Calls – Trading Range: .11-.2.29 – Max Gain: 1981%
$22 Calls – Trading Range: .11-1.84 – Max Gain: 1572%
The SPY Puts also worked out, although the potential gains weren’t quite as dramatic. For example the $203.50 Puts ran from .54-1.99; a comparatively modest, yet still excellent intraday move of 268%
We did a quick video highlighting these and a few other great calls made last week:
Another Big Chatroom Play
As our regular readers are aware, we’ve been calling more attention to the daily live traders chats that we conduct on Skype (Send contact request to ‘stocksumo‘ to join in!) so folks have a chance to get in on some of the hot plays that get presented to the room. For the third time in the past few weeks, chatroom member ‘DJ’ produced a gem. The following snapshot from Thursday afternoon’s chat contains his signal to the group:
What happened subsequent to that on Friday morning was nothing short of jaw-dropping. RGDXQ simply exploded as it came out of the gate at a low of .0024 and soared an impressive 900% to the high-of-day at .024 early on in the session. That was followed by a few significant swings later on as well. Excellent work by DJ in giving us the early-warning on that one!
Our current trader’s chats are free and open to anyone for a limited time only, so get on Skype and send a contact request to ‘stocksumo‘ to join in!
HydroPhi Technologies Group, Inc. HPTG
We had HPTG tagged in Friday’s morning report as well, and despite a pullback early on in the session the stock did make a nice rebound. After dipping to .0032 it regained ground back to .0048, which amounts to a 50% swing. The close came just a couple of ticks below at .0046, so we’ll definitely leave this stock on our radars for the time being.
The PR that helped fuel Friday’s activity (link below) highlighted a pair of significant acquisitions made by HPTG, so we’ll also be interested to track that aspect of the story.
Extended Watchlist:
CRCO, EFFI, NNRX, SKYF, TDEY