The last time we were mentioning Bed Bath & Beyond, was back in January when the stock was trading just below $14. It’s been in a solid uptrend more recently, reaching over 19.50 yesterday. However, we’re getting a bearish feeling from the chart now, especially following the company’s earnings report for the 4th quarter yesterday postmarket.
The company came fairly close to analyst expectations on earnings, yet recorded same-store sales declines for the seventh quarter in a row as e-commerce players like Amazon continue to horn in on brick-and-mortar reliant chains.
We are going to track a bearish options idea into the end of the week for this chain, with the BBBY Weekly $17.50-17 Puts, with the stock already being down a couple of dollars from yesterday’s highs here in the premarket.
FRESH OPTIONS IDEA: Fastenal, Inc. FAST 04/18 $62.50-67.50 Calls
Due to the sheer number of winning plays to report on from Friday’s newsletter, we will give only a brief summary including the name of the company, the ideas we submitted, and the total possible gains they had provided by the end of the week.
Nearly everything we’ve had our hands in recently has made some type of the move to the upside, continuing a very promising trend that we have established in the first months of 2019.
AstraZeneca plc AZN -We cited some contracts here earlier in the week (Weekly $39-39.50 Calls), as well as updated that idea on Friday with a couple of new targets at higher strike prices (Weekly $40-40.50 Calls). All contracts involved saw significant moves/new highs.
$39 Calls – Range: .55-1.39 – Max Gain: 153% $39.50 Calls – Range: .19-1.35 – Max Gain: 611% $40 Calls – Range: .23-.95 – Max Gain: 313% $40.50 Calls – Range: .12-.38 – Max Gain: 217%
Electronic Arts, Inc. EA - We had the EA Weekly $107-109 Calls in Friday’s report as a fresh idea, and all three of those plays could have worked out nicely for traders. We saw double bag gain opportunities across the board in this case.$107 Calls – Range: .78-1.60 – Max Gain: 102%
$108 Calls – Range: .50-1.13 – Max Gain: 126% $109 Calls – Range: .33-.66 – Max Gain: 100%
Canopy Growth Corp. CGC – We’ve been watching Canopy since well before the stock uplisted to the NYSE from the OTC, and while what was supposed to be a Canadian cannabis boom has been much more subdued than anticipated, we still like to keep tabs on this one and use its activity to our advantage wherever possible. On Friday we targeted the CGC Weekly $46.50-48 Calls and were met with multi-bag intraday gains there as well.
$39.50 Calls – Range: .83-2.01 – Max Gain: 142% $40 Calls – Range: .62-1.60 – Max Gain: 158% $40.50 Calls – Range: .43-1.20 – Max Gain: 179% $40 Calls – Range: .31-.90 – Max Gain: 190%
SPDR S&P500 ETF (SPY) - Last but not least, we had an idea for the SPY options chain, as we very often do, and all of those contracts provided us with big profit chances as they very often do! All five targets in the range of our SPY Weekly $274.50-276 Calls made big moves.
$274.50 Calls – Range: .85-2.92 – Max Gain: 244% $275 Calls – Range: 1.26-2.62 – Max Gain: 108% $275.50 Calls – Range: .86-2.61 – Max Gain: 203% $276 Calls – Range: .50-1.60 – Max Gain: 220% $276.50 Calls – Range: .22-1.10 – Max Gain: 400%
Walmart, Inc. WMT – Fresh Options Idea
Today we want to keep things rolling with a new idea to kick the week off on, and that is going to be WMT Weekly $101-104 Calls. The stock broke a double-top area of resistance on Friday, and this morning, an across-the-board earnings beat should help create some nice activity in our designated range.
Advance Auto Parts, Inc. AAP Weekly $165-170 Calls
On Friday morning, we closed out our premarket report with a fresh options trading idea for the HOME options chain, with the HOME 04/20 $30 Calls.
The idea paid instant dividends for our readers and ourselves as those calls traded in a very solid range from 1.20-3.75on the day, giving us the chance at intraday gains of up to 213% There’s obviously plenty of time to continue tracking this play, but as it is, we’re extrmely pleased with its single session performance on Friday, which registered as the sixth biggest gainer on the NASDAQ.
Aytu BioScience, Inc. AYTU
Another target we selected last week for a bottom-watch play after noticing the chart setup and a string of insider buys, was AYTU. While it didn’t exactly blast off yet, we wanted to go over the move it did make, and reiterate our interest in tracking this play as we kick off this short trading week.
Subsequent to our alert, the stock traded in a range from .4118 to .51, a modest 24% rise, and still has tons of room to run. In fact, the company will need to promptly reach and maintain a 1.00 PPS or risk having NASDAQ forcibly de-list its stock.
We signaled some options ideas for Boeing on Wednesday morning, the BA Weekly $352.50-360 Calls. We were met with moderate-to-good intraday gains ranging from 74-188%, as we reported yesterday morning.
We have to swing back around and provide yet another update after the opportunities to profit really kicked into gear yesterday. The intraday moves and gains on the table were as follows:
$352.50 Calls – Range: 2.90-8.75 – Max Gain: 202% $355 Calls – Range: 1.70-6.99 – Max Gain: 311% $357.50 Calls – Range: 1.11-5.15 – Max Gain: 364% $360 Calls – Range: .50-4.00 – Max Gain: 700%
Mastercard, Inc. MA
We added ideas for the Mastercard chain as well in yesterday’s premarket report with the MA Weekly $170-175 Calls. Those also turned out to provide the chances for some very nice intraday gains.
After the company beat solidly on earnings with rising revenues, the stock went on a run that was sufficient to create these moves on the day:
$170 Calls – Range: 2.00-5.00 – Max Gain: 150% $172.50 Calls – Range: .80-2.70 – Max Gain: 238% $175 Calls – Range: .24-1.05 – Max Gain: 338%
Fresh for Friday:
Sony Corp. SNE Weekly $51.50-53 Calls*
*Please do not attempt to trade weekly options on a Friday unless you are an expert level trader with disposable funds.
We began to track DPW in Monday’s premarket report, and with the help of a key Bitcoin related PR, the stock has performed quite well since then. We suggested that Monday’s bullish activity could be followed up with more of the same in yesterday’s report, and that’s certainly what occurred.
DPW traded in a daily range from an early low of 2.70, all the way up to an afternoon high of 4.27, marking an intraday burst of 58% As measured from our observed low of 2.15 on Monday, that high represented a two-day swing of 97%
We will once again track this play very closely, with Bitcoin streaking to new all time highs yet again, touching $12,798.78 shortly after 8AM Eastern this morning. The company just released plans to launch a line of Bitcoin mining hardware, and anything related related to the space should continue to be a hot ticket item amid the current crypto-craze.
American Eagle Outfitters, Inc. AEO
We’ve come to rely on going after big options trading opportunities, especially after a company releases its earnings. Despite having fallen short of Q3 expectations for profits and revenue, AEO posted solid same store sales growth, and issued promising guidance.
As a result, the stock has continued its recent bullish run, and we’re going to want to signal the AEO Weekly $16.50-17.50 Calls for observation over the remainder of the week.
Titan Pharmaceuticals, Inc. TTNP
We’re going to place TTNP on watch this morning as a potential bottom play. One look at the chart snapshot below clearly shows that the stock is currently exhibiting a strong double bottom signal. We can also see the nearly 100% move it recorded in recent months. We’ll be looking for similar activity in coming sessions.