Weekend Trader Series
July 14, 2024
Open Positions Update
- Please extend the scheduled time-stop date on the Celestica (CLS) September 20, 2024, 50-strike call to Monday, July 22
- The Walmart (WMT) August 16, 2024, 65-strike call reaches its time-stop this Monday, July 15. Close the position at a limit price within range of the current market price when you place the order.
The following is this week's recommendation:
GoDaddy (GDDY)Place a limit order to buy the GoDaddy (GDDY) October 18, 2024 145-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, July 12, this option was offered at $9.60. GDDY closed at $145.33 on Friday, July 12.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, July 29, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
GoDaddy (GDDY) stock is trading at all-time highs after joining the S&P 500 Index (SPX) last month, and recently bounced off the $140 level following a late-June breakout. That level is also seven times the equity’s initial public offering (IPO) price and coincides with its 20-day moving average, with shares now behaving in a similar way as they did in April.
Short interest increased 50% from February to the first half of June, before a small dip in the second half. Nevertheless, the security has rallied, and could extend those gains if shorts remain in covering mode. Over the last two weeks, short interest fell 13.5%.
Our recommended October 145 call has a leverage ratio of 8.8, and will double on a 13% rise in the underlying security.
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