It was a good week for a move. I spent the first few days in the new place huddled around my laptop and cell phone hotspot waiting to be reconnected to civilization.
Thankfully, it’s been a slow week for the options market as there’s been no definitive trend in the market internals.
Earnings for most of the S&P 500 is behind us, and most of the bets we saw this week were junk meme stocks.
That should turn around next week with several major retailers reporting in the last full trading week before we hit the holiday shopping season.
We saw that flow start to roll in earlier this week, and I couldn’t refuse the opportunity to take a quick trade on a retail name seeing unusual options activity.
Retail Names Seeing Unusual Options Activity as We Head Into Earnings
Two weeks ago, we featured Hasbro Inc. (Nasdaq: HAS) as one of my two top holiday stocks ahead of its Oct. 26 earnings report.
The company’s report beat consensus estimates by more than 13%, and the stock has gained almost 11% since the write-up.
Early Monday during my daily live Daily Profits Challenge War Room session, the Blitz Tracker picked up this retail name seeing some unusual options activity.
Bullish traders dropped in and picked up more than 1,600 contracts of the at-the-money $96 weekly call options for Hasbro ahead of an industry virtual exposition hosted by Jefferies.
With shares trading around $96.50, the alert went out to buy calls at a cost of $1.70…
By Tuesday’s open, HAS shares were trading just under the $98 mark while the options opened around $2.20. I promptly sent an alert to close for a quick 29.41% one-day gain — BOOM!
If there’s one trend the market can’t seem to shake, it’s that I sold too early again. Shares continued to rally over the next two days before the call peaked at $3.
I’ll take those meat and potatoes any day, especially with a quick win like this one. And if Daily Profits Challenge members continue to get better fills than I do when these retail names see unusual options activity, it’s a fantastic problem to have.
Check out the quick video below to find out my thoughts on the trade during Tuesday’s War Room.
P.S., This one tiny EV stock could be one of the biggest benefactors of the upcoming infrastructure plan.
Forget Beryl’s $25+ million dollar stake…
Or that Goldman Sachs, Citadel and Millennial Management — some of the biggest heavyweights in the world — have thrown their hats in on this stock…
A large cash injection into EV coming from President Joe Biden’s administration could be the biggest boost this stock ever sees.