Kirkland’s, Inc. stock trades under the ticker KIRK & has recently been showing strong technical strength.
KIRK stock closed at $11.80 on 10/13/20, after taking off from May 2020.
Their in-the-money call options are $10 calls (10/16 expiration), with $12.50 being the next higher level, requiring a 6% increase in price by Friday in order to finish in-the-money.
With an implied volatility of 128%, the $12.50 calls look more appealing to sell than to buy, whereas the $10 calls provide for some added cushion from market volatility.
The Delta of the KIRK $10 call option is 0.946, making it worth considering outright buying the shares for a trade instead.
KIRK Price: $11.80
10 Day Moving-Average: $9.38
50 Day Moving-Average: $8.21
200 Day Moving-Average: $3.20
For a hedge on KIRK stock or call options, their $12.50 puts are in-the-money, and look much more appealing than their $10 out-of-the-money puts
With the gap between the 10 Day & 50 Day Moving-Averages narrowing & getting closer to the price/share, when buying Kirkland’s, Inc. stock or calls, I would make sure to be mindful of having a smart hedge on the table as well.
Seres Therapeutics, Inc. stock trades under the ticker MCRB & has recently shown technical strength.
MCRB stock is currently $31.80/share, and their calls at this level are at a $30 and a $35 strike price.
While the Delta of the in-the-money $30 call is already 0.72, I may be more inclined to buy this than the out-of-the-money $35 call, as it needs 10% growth in order to become in-the-money (using the 10/16 expiration date).
MCRB Stock Price: $31.80
10 Day Moving-Average: $29.09
50 Day Moving-Average: $23.48
200 Day Moving-Average: $8.85
The other advantage of the MCRB $30 calls to the $35 calls is that their time decay will be slightly more forgiving; as the $30 call’s Theta is -0.083, and the $35 call’s Theta is -0.091.
The $30 strike price call option also has a more advantageous implied volatility, and although it is over 50%, selling the $35 call while owning the $30 call could be a good trade idea.
JinkoSolar Holding Co. Ltd. stock trades under the ticker JKS & has recently shown very strong technicals.
Closing at $54.96 on 10/8/2020 after a slight price pullback, there look to be opportunities trading JKS stock options.
In anticipation of more of a price pullback, the slightly in-the-money $55 puts look attractive, as the next lowest level is $50, which would require a ~7% drop to become in-the-money.
The $55 puts expiring on 10/16 have a delta of -.047, while the $60 put’s delta is -0.67 & the $65 put’s delta is -0.82.
For Calls, I would be looking out to the December 18 expiration, at either the $50 calls which are already in-the-money and or the $55 calls, as once they become in-the-money the stock should have some decent momentum for growth.
In this instance, I would buy them separately based on the charts, as the call option decay may be exaggerated by election uncertainty and volatility.
JKS Stock Price: $54.96
10 Day Moving-Average: $42.41
50 Day Moving-Average: $26.27
200 Day Moving-Average: $20.77
The RSI of 92 is high, and should even itself out as JinkoSolar Holding Co LTD’s stock establishes a new trading range, at which time entering the call options outlined above would be beneficial.
I’ll be looking at the options outlined above in the coming days & weeks.
Westwater Resources Inc. stock trades under the ticker WWR & has recently displayed technical strength, making it worth examining for trade opportunities.
WWR stock does not have options, but is a member of the NASDAQ, so while you have to buy the shares long, you can hedge against the position by using an inverse-NASDAQ Index ETF/ETN, or by buying options for or against the NASDAQ products.
An example, buying the SQQQ ETF, and or calls in it could be a means of hedging against the long WWR trade.
WWR Price: $11.80
10 Day Moving-Average: $2.84
50 Day Moving-Average: $2.19
200 Day Moving-Average: $1.96
While WWR’s RSI is high at 94, showing signs of being very overbought, after such a strong takeoff that is to be expected, and will go down to a more normal level as it establishes its new range.
WWR shows potential for being a good short-to-medium term trade.
Cassava Sciences Inc. trades under the ticker SAVA and has recently displayed technical strength that makes it worth looking a little closer at for a trade opportunity.
SAVA currently trades at $11.16 per the close of 9/28, and are currently down ~3% in the pre-market today as the futures trade mostly flat/slightly lower (per 7:30 am).
SAVA options that are closest to at-the-money are at $10 or $12.50 for calls and puts.
Given the breadth of that spread, I am going to look to be buying the slightly in-the-money options, as their Deltas are higher, and they offer some cushion for safety on a day like today which promises to be relatively uncertain.
SAVA Price: $11.16
10 Day Moving-Average: $9.36
50 Day Moving-Average: $4.55
200 Day Moving-Average: $5.02
Their RSI is currently high, although that should begin to shake out as they establish a new price range.
I may start the day buying puts, and then as the price starts to settle down sell them and look to buy some calls & perhaps set up a straddle based around where the price is settled.
VivoPower International PLC stock trades under the ticker VVPR, and has recently displayed some noteworthy technical strength.
Overall, VVPR’s chart shows upward momentum, with eyes looking at their resistance level of $9.50, ~12% above where the current price is trading, making them worth considering for a trade, and perhaps a longer-term investment long shot idea.
VVPR Stock does not have options to trade, so for hedging purposes, if you were to buy shares, it would be wise to look at ETFs like SQQQ for days where a hedge is required.
VVPR Price: $8.50
10 Day Moving-Average: $7.99
50 Day Moving-Average: $4.81
200 Day Moving-Average: $2.01
I will be looking at VVPR for a short-term trade opportunity within the coming days.
Sunworks, Inc. trades under the ticker SUNW & has recently experienced a bullish surge in price. Yesterday alone SUNW stock climbed by ~239%, and as of 8:05 am it is down 16% from yesterday’s price amid mixed signals in the futures markets.
While it looks to establish its new trading range there should be many opportunities for traders to make some money.
Sunworks, Inc.’s stock does not have options, so a trader would be looking for an entry into common shares as it begins to readjust to its new price range.
A trader in this name will have to be vigilant though, as there are no puts to use to hedge against volatility, and using SQQQ calls or shares may be a bit too aggressive, despite SUNW’s high Beta of 2.96 (5 year monthly).
SUNW Price: $3.28 (pre-market)
10 Day Moving-Average: $0.93
50 Day Moving-Average: $1.16
200 Day Moving-Average: $0.77
While today may not be the best day to hop into them as it may be a risk off Friday for many folks, there should be some appealing entry points, particularly as the 10 Day Moving-Average prepares to cross the 50 Day Moving-Average in the coming trading sessions.