We’ve unearthed a couple of stocks that are trading just above their recent relative lows, and wanted to relegate them to a bottom watchlist this morning. We’re getting strong multiple-bottom signals from each one, and will formulate a couple of corresponding options ideas.
Tenet Healthcare Corp. THC – This stock strung together three sessions of higher lows and higher highs to close out last week, with a ton of room to the upside. We’re going to be signaling our interest in tracking the THC 01/26 $13.50-14.50 Calls as the stock attempts to continue the beginnings of this uptrend.
Key Tronic Corp. KTCC – This play has been attempting a recovery of its own, after a sizable gap-down hit it this past Monday, as pictured on the chart snapshot below. We’ll be waiting in the wings with an options idea in this case as well, with the KTCC 02/16 $5 and $7.50 Calls.
Lululemon Athletica LULU – Update
We also want to give one final update on our Weekly LULU Calls, which provided us with multiple opportunities for swing trades throughout last week. Friday was no exception, with the following moves being made on the day:
$72.50 Calls – Range: .39-1.50 – Max Gain: 285%
$73 Calls – Range: .22-1.00 – Max Gain: 355%
$73.50 Calls – Range: .11-.50 – Max Gain: 355%
RLOG, OSTK, XNET, SSC, SPWR, RIOT, DPW, TCPC, GROW
Wal-Mart Stores, inc. WMT – Options Review
We signaled a wide range of options contracts in the Wal Mart chain yesterday, the WMT Weekly $92-96 Calls, and every single one of them produced the opportunity for huge single session gains. It was a post-earnings beat idea, and those have a tendency to work well in our favor.
WMT made a considerable move which allowed for multi-bag gains regardless of which strike price was selected. Those potential profits were as follows:
$92 Calls – Range: 2.55-7.40 – Max Gain: 190%
$92.50 Calls – Range: 2.13-7.15 – Max Gain: 236%
$93 Calls – Range: 1.42-6.58 – Max Gain: 363%
$94 Calls – Range:1.03-5.53 – Max Gain: 437%
$95 Calls – Range: .60-4.50 – Max Gain: 650%
$96 Calls – Range: .23-3.50 – Max Gain: 1421%
It appears as if WMT could keep this train rolling today, so we may look to roll up to the WMT Weekly $98-100 Calls* to stay close to the money.
Fresh Options Ideas:
We also want to put a few contracts from the Foot Locker and Verizon chains on watch today. Footlocker currently has a ripe bottom-play setup happening on the chart, while Verizon is another post-earnings beat idea.
FL Weekly $38-42 Calls*
VZ 01/19 $45-48 Calls
* Never trade options with a weekly expiration on a Friday unless you’re an expert trader with disposable funds. It’s just about as risky as it gets.
RLOG, DCIX, SINO, TOPS, NTES, HIBB
More Winning Options Trades
We submitted a pair of daytrading ideas for the NVDA and ROKU options chains, and it’s no surprise that both ideas turned out to be winners for us. Our lack of shock stems from the fact that we have been absolutely crushing it when it comes to options. We always have solid success in this arena, but the past few weeks have been more loaded with huge gainers for us more than even we are accustomed to, and Friday continued that trend convincingly.
We had the NVIDIA Corp. – NVDA Weekly $205-212.50 Calls as well as the Roku, Inc. – ROKU Weekly $28-30 Calls on watch for the day, and there wasn’t a single contract contained within either of those ranges that didn’t provide us with some really nice chances for big gains. Those were as follows:
NVDA Weekly $205-212.50 Calls
$205 Calls – Range: 7.50-13.59 – Max Gain: 81%
$207.50 Calls – Range: 5.55-11.06 – Max Gain: 99%
$210 Calls – Range: 3.65-8.60 – Max Gain: 136%
$212.50 Calls – Range: 1.90-7.22 – Max Gain: 280%
ROKU Weekly $28-30 Calls
$28 Calls – Range: 2.60-8.00 – Max Gain: 207%
$29 Calls – Range: 1.90-7.22 – Max Gain: 280%
$30 Calls – Range: 1.10-6.50 – Max Gain: 491%
JB&ZJMY Holding Company, Inc. JBZY
We also want to make note of JBZY, which has a pretty good chart setup at the moment. The stock was trending up off of its 50DMA throughout last week, and is sitting at .08 currently.
With a recent run to .16 showing us what this play is capable of in just a short time, we’ll go ahead and put it on watch as we start off a new trading week. As we’ve pointed out on the snapshot below, another bullish cross looks inevitable for the MACD.
TRXC, GV, RLOG, BIOA, NQ, PRTY, CEI