ITG Call Option Trade Alert

  • Sprouts Farmers Market Inc. (SFM)
    • Current Price: $22.44
    • Trade: Buy September Week 3 (expires September 20, 2019) $20 Call.
    • Trade Type: Market Current Ask: $3.50

SFM posted an earnings beat yesterday, along with upbeat forward guidance that gave the market reason to start buying, pushing the stock almost 5.5% higher in a single day. That move pushed the stock above downward trend resistance and looks like it could provide momentum for a reversal of the stock’s intermediate-term trend. The next most likely resistance is around $25 per share. Total upside: $2.56 per share.

  • Major support is around $21.60.
  • Total distance from stock’s current price: $.84 per share.
  • Set stop loss at break below $21.60.
  • Option Delta is .762. Estimated stock move from current price is $2.56, so the estimated positive option price move is $1.95. Return: 55%
  • Estimated negative option price move is $.64. Loss: -18%

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