Options Updates
We offered up a couple of fresh options ideas in yesterday morning’s report, GIS Weekly $37.50 Calls, and the MU Weekly $31-32 Calls. Despite the markets taking yet another hit in the wake of the Fed’s interest rate hike, both of those ideas managed to produce some positive intraday movement prior to the announcement.
The GIS $37.50’s traded up from 1.31 to 1.80, for a modest 37% rise, but the MU calls did considerably better, logging multi-bag gain opportunities:
MU Weekly $31-32 Calls
$31 Puts – Range: 1.03-2.47 – Max Gain: 140%
$31.50 Puts – Range: .70-2.21 – Max Gain: 216%
$32 Puts – Range: .46-1.83 – Max Gain: 298%
Axovant Sciences Ltd. AXON – Form-4 Alert
We routinely keep an eye out for brow-raising insider trading activity, and have run across AXON today. A trio of stakeholders filed Form-4’s on Tuesday alluding to the purchase of a total of $30M in AXON stock in three $10M transactions, at the current relative lows near a dollar. That amounts to over a quarter of the company’s total market value.
To us, this would seem a fairly big indicator that these institutional investors are very confident that the stock will not fall below these levels. We’ll go ahead and place AXON on an extended term bottom-watch into the New Year.
Extended Watchlist:
OHGI, OPTT, YRIV, GMO, PTX, GERN, SBS, NXTD, MARK, HEAR