Options Recaps
Our closing thoughts in Friday’s premarket report included some options ideas pertaining to our bullish feelings on AAPL and the SPY.
Specifically, we targeted SPY Weekly $193-194.50 Calls, and AAPL Weekly $115 and $116 Calls and included the following warning: “Trading options with a weekly expiration on a Friday carries an inherently elevated risk-reward factor, and is certainly not for the faint-of-heart, or beginning traders.” That would have been an important thing to remember, because the markets did pull back toward the end of the day, eventually rendering those contracts worthless, but not before opportunities for some big intraday gains were presented.
Early trading ranges in our SPY Calls rendered the chance at gains between 70-130% while the AAPL Calls did considerably better. The $115’s made a 293% move from .27-1.06, and the $116’s took the cake with a 520% surge from a nickel up to .31!
Heron Therapeutics, Inc. HRTX Puts
We also had some successful ideas going in the opposite direction; our bearish sentiment on HRTX paid some excellent dividends via the options chain last week, as we were mentioning on Friday. The stock continued to backslide into the close, reaching the $30-range with a daily low of 30.06. From our observed high of 42.25 at the time of our initial alert last Wednesday that’s roughly a 30% loss.
It will be interesting to see if this morning’s PR from HRTX affects the dynamics of the chart.
Clean Coal Technologies, Inc. CCTC
We also want to make another quick mention of CCTC, which has continually set new highs for us in the month of September.
We tracked the stock to some more nice gains last week, as it made a healthy intraday move of 21% from .72 to .87. That extends the total range we’ve observed following our initial alerts earlier this month from a low of .36 to Friday’s high; a total move of 142% in just two weeks’ time.
Totally Hemp Crazy, Inc. THCZ
We tagged this old familiar play on Friday for the first time since spring, and it turned out to be fortuitous timing as the stock made a noteworthy intraday jump. THCZ traded from a low of .09 up as high as .1189, a 32% spike.
We’ll begin to pay closer attention to this and other cannabis-related stocks as election time draws nearer and the issue of marijuana is once again tested on ballots. We’ll be open to the possibility of new waves of attention for the sector as a whole, and be sure to keep our ear to the tracks for relevant developments.
Pier 1 Imports, Inc. PIR
A failure to beat Wall Street’s expectations on both guidance and earnings led PIR to gap down on Friday, though the dip wasn’t sustained. After seeing a low of 6.84 the stock did manage to recover quite a bit of ground into a 7.61 close. This transpired at a time when the chart was already fairly oversold, and that effect has been magnified as we point out on the chart snapshot below.
We’re going to have PIR on an extended-term recovery watch. A return to even the 50DMA would spell significant gains from the current juncture.
Extended Watchlist:
GEQU, COTE, EQLB, IMUN, NESV, PBMD
