Weight Watchers International, Inc. WTW – Options Update
Mentioning the stock for the first time in our reports after catching yesterday’s news that Oprah is taking up a 10% stake in WTW, turned out to be yet another great feat of intuition on our part. We suspected that the hype-fueled run in the premarket would be subject to a classic dip-and-rip scenario which would allow us substantial opportunities on the options-trading front, and our assumption ultimately proved to be correct.
Just to refresh your memories, our specific target range was the WTW 11/20 $10-13 Calls, and all but one set in that range produced the chances for which we were looking. The $10 Calls were a bit too far out of the money to see any notable increases, but the $11, $12, and $13 Calls were all winning selections as WTW itself traded from 10.76-15.09 (+40%).
$11 Calls – Daily Range: 1.30-3.99 – Max Gain: 207%
$12 Calls – Daily Range: 1.00-3.50 – Max Gain: 250%
$13 Calls – Daily Range: .75-2.70 – Max Gain: 260%
The stock has continued to barrel upward in the premarket today, having once again cracked the $15 mark. By now it should go without saying that we’ll have to take a look at rolling up our strike prices to stay closer to the money in the event that the uptrend is sustained.
TripAdvisor, Inc. TRIP – Options Update
We began taking advantage of the TRIP options chain last week, where we tracked several different sets of contracts to triple-bag gains and better (we even had a 650% single-session mover!). To kick off the new week yesterday, we reiterated our interest in a specific idea, and it took almost no time at all for it to bear fruit.
We mentioned that we’d continue to observe the TRIP 10/30 $85 Calls and they logged a winning session for us once again. From a daily low of 1.50, they managed to run as high as 1.93. That goes down as a respectable intraday move of 29%
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We’ll look for TRIP to maintain support at or above yesterday’s swing low of 82.53 on any pullbacks to stay interested, but we will continue to track these contracts in the days ahead.
Extended Watchlist:
KALO, MAXD, GMET, ILST, WSTI
