As promised, we will try and send an update on our text trade ideas sometime after they are sent out. Todays Text Trade Idea Was $TZOO 37.50 calls @ .20 x .30. We spoke about TravelZoo on the Week Ahead Webinar last night, and also had the stock on our watch list with the August $35 calls as a possible entry. The stock broke above $30 in quick fashion and never looked back. With plenty of time until August expiry and with the potential for TravelZoo to really take off, we thought the August 37.50 calls offered the best risk vs reward scenario.
Those calls are now asking .80, as the stock has rallied 7.7% on no news. With a $460 million market cap, this stock has the potential to run 10-20% from here before earnings Thursday Pre-market. A risky trader like myself may hold most or all of the calls into earnings, but it may be a smart move to lock some in before earnings, as TravelZoo has disappointed many times in the past.
If the calls get to $1, I will look to lock some in and hold the rest for earnings.
Will try and have an update on the stock as I missed the update on Mellanox(MLNX), and apologize for that.