We picked up on Delta’s premarket earnings beat yesterday, and took the opportunity to formulate a set of options ideas to correspond with the activity, and it’s a good thing we did.
We highlighted and began tracking the DAL 04/13 51.50-53 Calls, and unsurprisingly, every single contract within our designated range made solid moves on the day.
$51.50 Calls – Range: .92-2.13 – Max Gain: 132% $52 Calls – Range: .66-1.70 – Max Gain: 158% $52.50 Calls – Range: .41-1.25 – Max Gain: 205% $53 Calls – Range: .15-.68 – Max Gain: 353%
Not only did we already bear witness to these excellent gain opportunities, but it looks as if these figures might be extended even further today as we close out another trading week, so we’ll really want to continue to keep an eye peeled. We’ll also roll up to include the $53.50 Calls on our watchlist.
We were just commenting the other morning on how so many of our stock selections so far in 2018 have gone on to mount very steady bull runs, and CPST is another shining example of just that.
We initially flagged the stock for observation a month ago, on March 12th, and the stock has been in a continual uptrend since then, so we wanted to take this chance to update our readers on its progress. From our observed low of .934, CPST has rocketed up to a new high of 1.85, marking a one month move of 98%
We were looking to take advantage of the rebounding markets yesterday morning with some SPY calls, and it turned out to be a solid idea for the day.
We told readers to look out for a classic dip-and-rip scenario, which did ultimately come to fruition. We designated the SPY Weekly $264-266 Calls as our targets and saw notable intraday moves out of each and every one.
$264 Calls – Range: 1.83-3.09 – Max Gain: 69% $264.50 Calls – Range: 1.62-2.72 – Max Gain: 68% $265 Calls – Range: 1.28-2.37 – Max Gain: 85% $265.50 Calls – Range: 1.05-2.00 – Max Gain: 90% $266 Calls – Range: .83-1.70 – Max Gain: 105%
We’d like to wrap things up this week by coming back to CPST to highlight the excellent performance of the stock since our alert on the morning of March 12th.
In the three weeks since then, CPST has been on a near-continual run up the chart, even as the markets ran into some trouble earlier this week. From its low of .934 subsequent to our alert, to yesterday’s high of 1.53, the stock has produced a move of 64% Volume also picked up drastically yesterday, leaving us anxious to see where the current surge of momentum will take CPST.
We want to start things off today by looking to take advantage of the big rebound in the markets yesterday. When we want to play the markets as a whole, we generally look to the SPY options chain, and that’s what we’re going to do today as well.
We are seeing a significant gap up this morning, and are going to be looking for a classic dip-and-rip scenario due to profit taking. Our targets are going to be the SPY Weekly $264-266 Calls provided that support can hold above this morning’s premarket low of 263.56 on any pullbacks in order to remain interested.
CHF Solutions Inc. CHFS
We also want to highlight CHFS this morning as a possible bottom play. The stock is gapping up in the premarket past its 50DMA, and there is a massive gap on the chart to the upside from just under $5 to just under $8.
We’re going to put CHFS, which prior to today had already been approaching heavily oversold territory, on watch over the next few sessions for the possibility of a more sustained rebound.
Cronos Group, Inc. CRON
We’re getting a strong bottom bouncer signal from CRON as well this morning, and we wanted to highlight this chart also.
CRON is currently exhibiting most of the things we look for in a bottom play, and we’re excited to see where it could go in the near term, as it looks like there could be some serious upside here.
Our options calls we made for the SPY on Friday morning were very good to us, and were an excellent way to close out what was ultimately a very successful trading week.
We put a flag up on the SPY Weekly $274.50-277 Calls after seeing the markets stabilize last midweek, following a couple of turbulent sessions as a result of Trump administrations newly announced tariffs. Things looked ripe for a rebound on Friday and that’s just what we got, with the SPY turning in a bullish performance from start to finish.
There were six sets of contracts contained in our designated range, and regardless of which strike price was chosen, intraday gains were on the table, ranging from very good to absolutely fantastic.
$272 Calls – Range: 1.30-4.31 – Max Gain: 232% $272.50 Calls – Range: .80-3.90 – Max Gain: 387% $273 Calls – Range: .68-3.25 – Max Gain: 378% $273.50 Calls – Range: .46-2.90 – Max Gain: 530% $273 Calls – Range: .26-2.45 – Max Gain: 842% $273.50 Calls – Range: .10-1.90 – Max Gain: 1800%
Burlington Stores, Inc. BURL – Speaking of multi-bag options winners, we slated the BURL 03/16 $120 & $125 Calls for observation on Thursday morning, and those finished out the week with stregth as well. The $120 Calls ran from 4.04-8.50, for an intraday rip of 110%, while the $125 nearly doubled that performance with a 212% run from 1.35-4.21.
Lumentum Holdings, Inc. LITE
We want to swing back around to recap the recent performance of LITE as well. Since our alert on the stock on February 7th, at which time the stock was trading for as little as 52.20/share, LITE has made considerable and steady upward progress.
On Friday it hit a new high of 69.25, marking a move of 33% in less than five weeks. That is quite a feat for a stock that started out above $50!
Fresh Options Idea:
Valeant Pharma International, Inc. VRX -We’re going to formulate a short and longer-term options idea for VRX, which is looking like it could be ready for a bottom bounce. Last week, an insider buy to the tune of more than $108.8M came in as well, which just reinforces our assumption that for now the stock has gone as low as it’s going to go.
We’ll be looking at the VRX Weekly $15 & $15.50 Calls, as well as the 04/13 $16 & $16.50 Calls.