This is a new type of post that I will try to make each week (usually weekends, but sometimes during the week) where I share some stocks to watch, or at least that I’ll be watching based on recent Unusual Options Activity as well as some other market factors.
For full disclosure, I will let you know which ones I have positions in already. The names on this list that I don’t have positions in are names that I’ll be eyeing for opening positions in.
Stocks To Watch Early On In The Week of August 21st, 2017
$BC – Brunswick Corporation
The name saw some heavy call buying in the SEP17 $55 Cs and the DEC17 $55 Cs on Friday, both traded above ask or towards the bid side and were not part of a spread trade.
The stock just took a dip on their earnings report (from around $61 to $48.72), but these buyers may believe that it has put in a bottom. The early morning sweepers (the DEC17 $55 Cs mostly) helped to drive the stock up off that low with some speed. Then as volume faded and the stock started to pull back a little bit, the September action came in and pushed the stock back towards upwards momentum.
I’ll be watching the DEC17 $55 Cs for an entry. The 52-week high is $63.82.
$HXL – Hexcel Corporation
This one also took a beating after earnings; dropping from $54.89 before earnings to a low the next day of $50.5.
It started to move back up after the low but then started to pull back again mid-last week until Friday.
An aggressive call sweeper came in and bought the SEP17 $55 Cs at ask and also above ask (.40, the spread was .30 x .35). That trader clearly sees the name continuing to move up and with the stock trading near $55 just three weeks ago, a move back to $55 isn’t too far-fetched.
The 52-week range is $41.03-$55.91 and ex-div has already passed, so this is an interesting one I’ll be watching. No current position.
$RRC – Range Resources Corporation
This one I do have a position in (DEC17 $20 Cs). Friday saw an unusual buyer of the SEP17 $17 Calls. Two weeks ago before earnings, it was trading at $22.71 and also tanked on earnings, hitting a low of $16.5 Friday before last. This past Friday, after an intra-day low of $17.42 the stock climbed to $18.1, drifted down on low volume to $17.81, then had a spike near the end of the day to $18.09.
The move up from the morning’s low was (at least partially) driven by that September $17 call sweeper. While he may have caught most of this move, I don’t think he did. The stock has a 52-week range of $16.50-$43.60, so it has plenty of time for more upside. The bounce from the pullback was lead by some buying in the SEP17 $18 and $20 Cs as well as some DEC17 $21 positions.
I like my current position and will be looking to possibly average down on any move lower (I’m down .10 on my Cs right now).
Some of the other names I’ll be looking at are
- $OSTK – Seems to be popping back up on higher volume after a low volume dip – I own the
- $COT – Same scenario as $OSTK – I own the $NOV17 $20 Cs
- $SLCA – I own the DEC17 $35 Cs … definitely safer to buy closer to ATM though. 52-week range $24.26-$61.49 – currently trading at $26.10.
- $MSFT – This might be weighed down a bit by volatility in the Nasdaq 100, but it’s still a strong name and is currently trading around $2 off its’ 52-week high. I own the 8SEP17 $76.5 Cs, which I’ll be looking to average down and most likely roll next week. Nice buying on Friday of the OCT17 $77.5 Cs and selling of the OCT17 $67.5 Ps (some of that was part of a bullish spread, but not all of it).
- $RMBS – Pop on volume after their E.R. and has been drifting down on low volume ever since. I think this one has legs. Eyeballs on the SEP17 $13 Cs.
- $ITCI – I own some of the NOV17 $15 Cs. – The 52-week range is $7.85-$45.20 and this is another one moving on low-volume since an earnings drop. Consider a similar position over $12.50-$12.75 if it can get there with volume.