ACTION:
Buy to open the TIVO May 12 calls (TIVO150515C00012000, $0.42, up $0.02) at current levels.
Dear Momentum Options Subscriber,
I usually start my weekend homework on Friday as I watch the market into the close. I normally try to refrain from opening new positions ahead of the weekend, but the two trades from last Friday turned out to be nice winners.
On that note, I have noticed a ton of option activity in a stock that I have kept on my Watch List over the years. Traders are loading up on the March options, but they expire in three weeks.
This means that traders are expecting a huge move over the near term. I want to use the May calls to give the trade a little more time to play out.
New Trade
TiVo (TIVO, $11.14, up $0.11)
Buy to open the TIVO May 12 calls (TIVO150515C00012000, $0.42, up $0.02) at current levels.
The TIVO March 11 calls and TIVO March 12 calls have each traded over 5,000 contracts. I like the TIVO May 12 calls at current levels to play a possible run to $13. These are the regular monthly options that expire on May 15.
Earnings are due out next Tuesday, and I will cover the parameters of the trade in Monday’s Pre-Market Update.
Until then, have a great weekend!
All prices given in this update are current as of 2:55 p.m. EST.
Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.
Trade on!
Rick Rouse
Editor and Chief Options Strategist
Momentum Options