Bottom Line Both SPCX and PURR had big days on Thursday, bolstering their respective bullish cases. Today, Friday, the last trading day before a three-day holiday weekend, both stocks are backing and filling. If not already Long calls on either, any move above Thursday's highs is a pound the table BUY, whether that is later today, or next week, or next month. As per Monday's PRO update, we want to be sure to be long SPCX calls on any close above $150. Since that went out to PRO subscribers, SPCX as risen from $144 on Monday to above $152 yesterday, where it closed just below $150. SPCX Daily Buy on close above $150, "Pound The Table Buy," on move above Thursday high print: above $152.30. That very last line of real resistance comes off of top tick in this stock's young history, $225.64 on June 16th, just three days after its IPO. It subsequently fell to a low of $104.83 on August 3rd, successfully tested on August 6th, then starting its current comeback rally into yesterdays close. I have little doubt it will see $200 again, and sooner rather than later. The Oct $160C is, as I said on Monday, compelling. This call has risen from $475 when first mentioned on Monday, to a best trade @ $770 per call yesterday, around $650 so far today, all in less than a week's price movement and on only about net $7-8 gain on the underlying shares. SPCX 90 MInute SPCX Analysis from AI: The next levels are pretty straightforward: Bullish confirmation: a close above roughly $152–$153. That clears today's high and the major descending resistance line. Above there, I would expect a move toward $160 first, with the possibility of a much larger run if momentum builds. Neutral/healthy: holding $148–$150 and consolidating for a day or two. Warning: back below roughly $145–$146. That would put price back inside the old pattern and make today's surge look more like a failed breakout. So compared with where we were earlier, I'd upgrade SPCX from “approaching resistance” to “breakout underway, confirmation pending.” For your existing Oct $160C, I would be inclined to stay with it. This is exactly the type of setup those calls were purchased for: the underlying is now knocking on the door of the strike with more than a month left. I would not add aggressively at $149–$150, though. The better add, to me, is either a successful retest of $148–$150 or a decisive close above $152–$153. SPCX Oct $160C PURR Daily PURR Oct $13C New purchases ---> Oct $13 and/or Oct $15 lottery ticket - see AI discussion below. PURR Dec AI Notes A 240-minute close above roughly $12.50–$12.60 confirms the breakout. At $12.78, we're above it now. I wouldn't be surprised to see $14.00–$14.15 tested fairly quickly if the breakout sticks. Above the August 27 high of $14.14, the chart essentially has clear air. And today's move isn't occurring in a vacuum. PURR has been trading with unusually strong volume, and recent analyst targets cited by MarketBeat range from $17 to $22.60. Now look at those options This is where it gets particularly interesting. The October $15 calls jump off the page: $1.15 × $1.20, 575 volume, 18,390 OI, delta .419, 43 DTE. That's by far the cleanest October contract shown. The five-cent spread is excellent relative to the option price, OI is enormous, and 42 delta gives substantial participation without paying for intrinsic value. If PURR merely retests $14.14, these should respond nicely. If PURR breaks $14.14 and starts moving toward $16–$17, the gamma effect starts working strongly in our favor. For a shorter-duration/high-leverage trade, the October $15C is my favorite contract on these tables. But look at December. The December $13C has: $2.55 × $2.90, OI 17,646, delta .599, 106 DTE. That's a very different animal. You're paying substantially more, but you're getting nearly 0.60 delta and another 63 days. It is much less dependent upon an immediate explosive move.
