Blue Horseshoe Stocks: GIS, FDX Options

Options Updates

The Michaels Companies, Inc. MIK – One of our fresh ideas for yesterday morning’s premarket report was a post-earnings target of the MIK 04/18 $12.50 Calls combined with a solid technical setup as a bottom-bounce play.

The stock turned in a very solid performance on the day, coming up just shy of its 50DMA, and that produced a significant gain opportunity for the contract set we designated. The $12.50 Calls traded up of a low of .60, and hit 1.35, marking an intraday run of 125% We’ll want to continue to reserve a spot on our radar for this play, and watch for the stock to continue to establish higher lows and higher highs off of its recent 52-week lows.
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StoneCo Inc STNE - We also had the STNE 04/18 $37.50 & $39 Calls highlighted in yesterday’s report, and while we didn’t see quite the same intensity of activity as the above-mentioned play, that pair of contracts did get off to a good start, with nearly a full month remaining until expiration.

The $37.50′s traded in a range from 4.60-6.20 for a 35% move, and the $39′s went from 4.20-5.00 (+19%). We’ll continue tracking these as well.
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Fresh Post-Earnings Ideas:

FedEx Corp. FDX Weekly $172.50-170 Puts
General Mills, Inc. GIS 04/18 $47.50-50 Calls


Extended Watchlist:
SCNA, NAVB, TYHT, NVRO, PIR

Blue Horseshoe Stocks: MIK Options & More

SPDR S&P500 ETF (SPY) – Recap

We went bullish on the SPY in our premarket report yesterday, and thanks to two distinct intraday pushes for the markets, there were opportunities across the board for our highlighted contracts throughout the session.

Those targets were the daily SPY 03/18 $281-282 Calls, and we saw significant moves from all three. The $281.50 Calls traded in a range from .34-1.06 for an overall upswing of 212% while the $282′s traded up from .15 to .58, a gain of 287% (We mistakenly lost exact data for the $281 calls, but the gain opportunities were very similar to those of the other two strike points.) 


The Michaels Companies, Inc. MIK

We also want to signal a set of contracts on MIK, which was the one listing on this morning’s earnings calendar that jumped out to us the most. Michaels posted an earnings beat, but also happens to be trading near its annual lows.

We’re going to approach this like we would any other play with bottom-bouncer written all over it, by signaling some longer-term calls to give ourselves some extra time to see the recovery play out. We’re going to radar the MIK 04/18 $12.50 Calls and monitor their activity in the days and weeks ahead.
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Bonus Idea:
STNE 04/18 $37.50-39 Calls


Extended Watchlist:
FPAY, CPST, INSY, TROX, CPST, NCTY, SDRL, CREG, LGCY, AKER, PIR

Blue Horseshoe Stocks: HSY Options & More

The Hershey Co. HSY

We’re looking at one of the biggest players in the Halloween candy game in Hershey as we kick off a fresh trading week. The company reported its Q3 earnings on Thursday, and despite a frosty reception from Wall Street, we are liking the look of this play.

The company asserts that it is on a good path, having had what the CEO calls a game changing year. While the stock did see its biggest daily loss since 2016 on Thursday following the report, it did not turn into a multi-day slide. Coupled with what looks to be another rebound day for the markets at large, and we’re interested in signaling a few HSY Calls.

We’ll place the HSY Weekly $102-104 Calls on watch this morning.

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Bonus Idea:
Nutanix, Inc. NTNX 01/18 $42.50 & $45 Calls


SPDR S&P 500 ETF (SPY)

On Tuesday, we noted that with such a sharp and rapid downturn in the markets, that a rebound was certain to be in the cards for the SPY. It led us to signal interest in the SPY 10/31 $275-277 Calls, which will certainly be in play today as the SPY is gapping up big this morning in the premarket.

We’ll be back tomorrow morning with a recap of what is likely to be a cleanup session for these plays today.


Extended Watchlist: 
DPW, ESES, XSPA, AKER, SBS, TLRY, AMRN, NXTD, STNE