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Weekly Position Updates / Extreme Trade Updates (5/1/18)

Extreme Trade Updates (5/1/18)

May 2, 2018

On April 10, 2018, we recommended three trades ideas, each of which is already beginning to move.

Facebook (FB) stock at $158.50 — exit the trade
Facebook May 2018 165 calls at $5.25 (exited half on April 17, 2018) — exit the trade.

Shares of Facebook last traded at $173.86 after posting blowout earrings.  And while it’s tempting to hold the FB trades for a bit loner, we have to be smart about it, as the stock becomes aggressively overbought.  We can’t go wrong taking a $15.36 win on the stock, or nearly 100% gains on the FB May 201`8 165 calls, which expire in just a couple weeks. Take your wins and move on.  Congratulations on this trade.

Activision Blizzard (ATVI) at $66.25
ATVI May 2018 65 calls at $3.85 (exited half on April 17, 2018)

ATVI is slowly recovering, last trading gat $67.80.   We’d like to see a near-term test of $69 a share.  The calls now trade at $4.05, handing us a small win so far.  We’re looking for ATVI to breakout of its tight coiled spring to test $70, near-term.  Hold.

PayPal Holdings (PYPL) at $75.90

We already exited the PYPL May 2017 75 calls for solid wins.  Let’s continue to hold the underlying stock.

On April 17, 2018, we recommended the following for trade on April 18, 2018:

Buy the TWLO stock, which opened at $41.41
Buy to open TWLO July 20, 2018 42 calls, which opened at $3.80

Shares of TWLO pushed to $42.55 and remain on hold at this point.  We’re also showing a respectable win on the TWLO July 2018 42 calls, which last traded at $4.20.  Hold both.

Buy the WTW stock, which opened at $67.66
Buy to open the WTW July 20, 2018 70 calls, which opened at $6.50 — exit half

WTW is also pushing higher, last trading at $72.95.  We have a near-term price target of $70.  Sit tight.  The calls now trade at $8.65.  Consider exiting half of the calls here to secure partial wins.

Buy the TWTR stock, which opened at $31.67
Buy to open TWTR June 15, 2018 32 calls, which opened at $2.93

So far, TWTR has been a disappointment, last trading at $30.30.  However, we do anticipate higher highs from this point after the stock caught support at $29 a share.  Hold.

On April 26, 2018, we recommended the following trades:

AMGN June 15, 2018 175 calls — $5.70

After a slight recovery, AMGN took a hit, falling to $169.30 a share.  It’s still aggressively oversold at this point.  Hold with a price target of $177.

JNJ June 15, 2018 125 calls — $4.55

JNJ is also still aggressively oversold at this point. We’re holding with a target price of $129.

Bristol Myers Squibb (BMY) stock — $51.25
BMY May 18, 2018 52 calls – 85 cents
BMY June 15, 2018 52.50 calls – $1.80

So far, so good with BMY.  After a nasty sell off from $65 to less than $52, the stock is finally beginning to rebound from its lows.  We have a near-term price target of $55.  We’re also looking for a bearish gap refill at $65, longer-term.