Snap, Inc. SNAP – Update
Even as the markets got crushed yet again yesterday despite it appearing as if the worst of the downturn was over, SNAP still managed to produce gains in our updated options trading targets.
It was in our premarket report yesterday that we were updating readers on the previous idea we had with the SNAP $16-17.50 Calls, which made moves ranging from 335-700% the day prior.
The stock had risen by such a large margin that we rolled up our potential strike prices to the $21-22.50 levels, and we got very nice activity out of half of those calls to keep our success with the SNAP options chain rolling.
The $21 Calls ran from .04-.32, for a fantastic 700% rip, while the 21.50′s made a 400% from .03-.15.
Fresh Options Idea:
Provided the SPY holds above 259.50 we’ll be interested in the SPY Weekly $260.50-262 Calls*
*Please do not attempt to trade weekly options on a Friday unless you are an expert level trader with disposable funds.
LendingClub Corp. LC
With turmoil in the markets persisting, this is a time when we want to stick to our technicals, and look for stocks that are currently boasting the type of chart setups we routinely scan for, and LC currently matches the profile.
The stock has come down to double-bottom with a gap to fill to the upside, as you can see on the included snapshot. We feel that over the next few weeks, LC could be in line for a solid recovery.
In addition to the stock itself, we’re going to radar a pair of options contracts to track over a more extended period of time, with the LC 03/16 $3.50 & $4 Calls.
Seattle Genetics, Inc. SGEN – Form-4 Alert
While we’re on the subject of bottom-plays, we’ve got SGEN hitting our scanner this morning. We’ll include a chart snapshot of this one as well, so you can see what we find so attractive about it. We’ve got a triple-bottom formation happening with the stock coming down to he $50-range, and a recent track record of the type of volatility we’re after.
To sweeten the pot, a major Form-4 buy came in the last week at $52, to the tune of $200M (View EDGAR Filing) in addition to a multi-program immuno-oncology collaboration with Pieris Pharmaceuticals announced this morning.
We’re going to track the SGEN 03-16 $50 Calls in the days and weeks ahead.
PIRS, AVIN, CTRL, CFMS, CNET, INPX