Valeant Pharmaceuticals International, Inc. VRX- Options Update
We wanted to circle back to touch upon an update for the VRX 04/22 $32 Calls we initially slated for observation on Tuesday. VRX trading activity allowed for us to witness a run from 2.90-3.90 that day, for possible gains of up to 35%
We stated as much in yesterday’s morning report, with the added reminder that we felt certain the scope of those gains would increase, and we were spot-on once again.
For the day we observed a move from 4.25-5.25, a relatively modest 24%, however as measured from the low we saw on Tuesday morning, it marked a two-day swing of 81%, so cheers to those of our readers who were following along with us on this play!
Tesla Motors, Inc. TSLA – New Options Idea
Up until yesterday’s session, TSLA had been enjoying an epic rally which began in early February, however, that began to fizzle out over the past couple of days. The stock now appears very top-heavy, and that was confirmed by a fall below its 200DMA yesterday.
In the event that this is a protracted backsliding event, we’re going to want to be ready with a corresponding options trading idea. We’re going to zero in on contracts in the range of TSLA March 24th $220-215 Puts, which qualify as Weekly contracts*, as the markets are closed tomorrow.
*Please remember, trading weekly options contracts on a Friday is an extreme high risk/high reward proposition, and is recommended for highly experienced traders only.
Celator Pharmaceuticals, Inc. CPXX
CPXX was a point of focus for us last Wednesday, when we caught a hot PR hitting the wires, and despite the stock already being up considerably at that point, we were able to glean a healthy 41% gain out of the stock that first day (from a low of 6.44).
As we’ve kept observing the play over the course of the week, we’ve seen a continual stream of higher highs and higher lows, which culminated in a new high of 12.64 yesterday. In exactly one week’s time, we saw CPXX make an overall swing totaling 96%
Great Basin Scientific, Inc. GBSN
We also want to give ourselves a quick pat on the back for calling GBSN to our readers attention via our extended watchlist yesterday. The stock was experiencing highly abnormal activity due to some FDA News and despite gapping up to the extreme, we still saw a dip-and-rip which carried the stock on an intraday run from .222-.29, a 31% swing.
Extended Watchlist:
PTX, JDST, CNAB, GVSI, MLCG, SIPC, MAXD(Bottom-bouncer)
