NQ Mobile, Inc. NQ
Yesterday, we pointed out all the reasons why we felt that NQ was in a good position to make a run, and we certainly hope folks took it to heart, because the stock followed it up with an solid session.
We first observed a morning low of 9.40, and NQ subsequently made a healthy move to a high of 10.85 on the afternoon, which was good for an intraday gain of 15%
On the options side of things, the $10 Calls dipped as low as .35, and went on to trade as high as a 1.00. This provides a good example of why we’ve gotten more and more into trading options on big board plays. Even just a modest move on the chart can translate into huge gains on the right contracts.
NQ is gapping up to the tune of another 5% this morning, so we’ll continue to keep an eye on things as we head into week’s end.
So far, from the low we observed following our tag of NQ toward the end of last month (6.25) we’ve seen gains on the order of 77%
Vanda Pharmaceuticals, Inc. VNDA
VNDA was another NASDAQ-listed stock that appeared in yesterday’s report on the Extended Watchlist. It would trade in a range from 11.00-12.99, an 18% increase. Another modest move compared to what we’re accustomed to with the pennies, but coming from a big board play, 18% in a single afternoon is very impressive.
Like NQ, VNDA was trading near a relative bottom when we passed it along to readers, and with this new-found momentum, it will be interesting to see what happens next.
Whether or not VNDA can crack through its 50DMA (13.04) is going to be the deciding factor as to whether there’s more upside here. Yesterday’s high came in just shy of that mark, so we’ve got some resistance to contend with, but we’ll certainly be monitoring very closely for a break of that level on the chart.
Shamika 2 Gold, Inc. SHMX
SHMX is a sub-penny breakout play that we want to add to our radar this morning. Yesterday the stock traded 9x its 3-month average volume, and traded in a range from .0003-.0006. It always a good idea to be cautious when dealing with these triple-zero stocks, but as most of you know, when the potential risk is high, the potential rewards can be even higher.
We’re going to monitor this play for further activity, more specifically, a potential dip-and-rip. Should SHMX taper off and pull back, that’s where we’ll be waiting to strike. Correctly timing the bottom on one of these super–subpenny stocks can treat traders to a heck of a bounceplay as we’ve seen so many times in the past.
Side Note: AAPL Options
AAPL continued to break out yesterday past last week’s swing high of 644.17. Remember, on Monday we reminded everyone that the AAPL options chain was a good candidate to provide us with opportunities over the course of the week, and that has certainly been true thus far. The $640 Calls were as cheap as 1.35 on that day, and by yesterday, they were going for as much as 9.50.
Huge moves like that have almost become commonplace, as we’ve tracked AAPL through a more-than 100-dollar increase in just the past couple of months.
Extended Watchlist:
NEWL, S, HALO, AXAS, GIGA, BBRY