Starbucks Corp. SBUX - Recap
We formulated some options ideas for Friday morning’s premarket report, and among them were the SBUX Weekly $66-67.50 Calls. Continuing a trend that we carried throughout the week, we once again struck upon multi-bag gains off of an earnings related play. This type of trade has become one of our go-to moves for this very good reason. We urge any skeptics to rifle through our blog and check our record on this. We believe our success rate is unparalleled.
$66 Calls – Range:.65-1.65 – Max Gain: 154%
$66.50 Calls – Range: .40-1.35 – Max Gain: 238%
$67 Calls – Range: .22-.80 – Max Gain: 264%
$67.50 Calls – Range: .10-.49 – Max Gain: 390%
We also had the WDC Weekly $43.50-45 Calls in Friday’s report, and despite the fact that only the $43.50′s ended up being in play, the potential gains they afforded traders were exceptional. They traded up from a low of .03 all the way up to .26- a move of 767% on the day.
Caterpillar, Inc. CAT
We’ll once again look to a premarket earnings release to provide us with the impetus for a fresh idea this morning. Caterpillar missed on profits and issued unimpressive guidance, as the company reported disappointingly low demand, specifically in the Chinese market.
We are going to take a bearish view on this for the near-term, and put the CAT Weekly $132-128 Puts on watch to kick off the fresh trading week.
AVCO, TEUM, SUPN, OGEN, RBZ, BLPH, BW, IAG