Talk about easy.
On February 14, 2017, we noted:
After falling on earnings, shares of GIMO have become technically undervalued on our momentum indicators, including RSI, MACD and Money Flow. In fact, all three indicators are beginning to reverse higher as we speak. With a likely bearish gap refill at $43 at some point, near-term, we may be able to do well with the GIMO April 2017 35 calls up to $2.65 and, or the March 35 calls up to $1.60.
A week later, we’re already taking gains off the table, as GIMO jumped to $36.40 today. The GIMO April 35 call – which could have been picked up at $1.90 – now trades at $3.20. The GIMO March 35 calls – which could have been picked up at $1.25 now trade at $2.35. Sell to close half of each.
As the underlying stock begins to rebound, we’d eventually like to see a potential bearish gap refill near $45.