Option Investor

Daily Newsletter, Thursday, 3/26/2015

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

Seeking Support

by Thomas Hughes

Click here to email Thomas Hughes
The market may have found a bottom.


The market may have found a bottom but with so much data due it may also be too soon to know for sure. Tomorrow is the 3rd estimate of 4th quarter GDP and Michigan Sentiment, next week is the monthly bundle of jobs data and over a dozen other potentially market moving economic releases.

The pre-opening session was marked by a surprise drop in weekly jobless claims, positive earnings surprises and weakness in global equities markets. Asian and European indices were mostly in the red led by declines in the Nikkei and DAX indices. Headlines impacting global trading include yesterday's US equities sell-off, mounting conflict in Yemen, the ongoing possibility of Greece exiting the EU and the details of the Germanwing airplane crash.

Market Statistics

The morning started out pretty bad, futures were indicating an open about a half percent below yesterday's closing prices. Better than expected earnings and jobs data helped to lift the indices but not much. After the opening bell the indices fell pretty hard and looked as if they might match yesterday's declines. Today's bottom was reached around 10:15AM with an average loss near 0.75%. At that point the bulls stepped back onto the scene and began to bid the market back up. By 2PM the indices had reached break even and began to move into the green.

Economic Calendar

The Economy

Initial claims was reported as 282,000, a drop of 9,000 from last weeks unrevised figures. Analysts ha been expecting claims to hold steady around 290,000. The four week moving average also fell, dropping further below 300,000. On a not adjusted basis claims fell by -5% versus the -1.7% projected by seasonal factors. On a state by state basis the largest increases were in Tennessee (+2,976), California (+1,020), Michigan (+457), Mississippi (+355), and Arkansas (+315), while the largest decreases were in Pennsylvania (-2,265), New York (-2,201), Georgia (-1,969), Illinois (-1,961), and Texas (-1,773). Claims remains low after hitting a peak last month, in line with current trends and indicative of a healthy labor market.

Continuing Claims also fell, by -6,000 from an upward revision of 5,000. Continuing claims are now 2.416 million, little changed from last week and stable around the 2.4 million mark. Claims have been stable around 2.4 million for almost two months and also reflect a healthy if not strong labor market.

Total claims for unemployment also fell, by -74,194, to 2.784. This is an 11 week low but also relatively stable relative to the past 8 weeks. This figure, as well as the rest of the jobless claims data, suggest that the labor market is healthy and may have reached a point of equilibrium between job losses and jobs creation.

The Oil Index

Oil prices jumped more than 4% on the news of Saudi air strikes into Yemen and an impending land assault by a coalition including the Saudis and Egypt. This conflict, which includes the Iranians, could spark a larger war in the Middle East but as yet is not impacting production or supply. Elsewhere in the Middle East we've upped our involvement in Iraq by launching our air strikes in support of the Iraqi fight to clear Tikrit of ISIS. Fundamentally there is no sign of oversupply issues easing.

The Oil Index jumped in early trading and made a small gap at the open. From that point on the sector sold off resulting in a net loss for the day. The index only fell about -0.1% and was able to remain above the short term 30 day moving average. The index appears to be moving higher after bouncing from the long term trend line but the move is weak. The indicators are in line with this bounce but are also weak. Prices are currently trapped between the support of the moving average and resistance at a major Fibonacci Retracement level that has acted as support/resistance in the past. This index could go either way, most likely dependent on oil prices, but a break of support or resistance is needed with about a 50 point move expected either way before meeting the next potential target.

The Gold Index

Gold prices continue to climb and may go higher. Today gold gained more than 1% on an intraday basis and climbed above $1,200 for the first time since dropping beneath it at the start of this month. Gold is getting a boost from the weakened dollar, physical buyers and flight-to-safety stimulated by the Yemen crisis. Today's action created a potentially bearish shooting star type candle that could indicate resistance or a top. However, with prices closing above $1200, I reserve judgment on that until later.

The gold miners got a little boost from the rise in gold prices but were not able to hold the gains. The gold miners ETF GDX opened higher but like the Oil Index sold off during the day. The ETF lost over 2% and fell below the short term 30 day moving average but not below the rising support line drawn from the Nov/Dec bottoming action. The indicators are bullish but reflect near term weakness with declining momentum. Today's decline is a little surprising in light of the rise in gold prices but as yet not overly bearish. The ETF still appears to be moving higher from a bottom but could be range bound in the near term while earnings and outlook remain cloudy. Support is along the rising trend line near $18.50-$19 and below that at the long term low near $16.50. Resistance is near $21.

In The News, Story Stocks and Earnings

Sandisk warned on revenue and profits this morning. The chip maker says "it expects its revenue for the first fiscal quarter, which will end on March 29, 2015, to be approximately $1.3 billion, depending on final sell-through results, compared to the previously forecast revenue range of $1.40 billion to $1.45 billion. The change in first quarter revenue estimate is primarily due to certain product qualification delays, lower than expected sales of enterprise products and lower pricing in some areas of the business. The Company expects continued impact to its 2015 financial results from these factors as well as the previously identified supply challenges, and now forecasts 2015 revenue to be lower than the previous guidance. ” The news caused the stock to fall more than 15% and for shareholders to initiate an investigation into executive actions, specifically the announcement and its resulting affect on shareholder value. Sandisk is now trading at a 12 month low.

The Sandisk news caused the entire semiconductor sector to fall but the bulls quickly stepped in. Upon deeper understanding of the news it is apparently not an industry wide phenomenon. The Semiconductor Index fell in the premarket session, as did many of the top chip makers, but quickly regained much of the losses. At the end of the day the index was down about -1.25% but most of the index components were able to make small gains. The index is still above long term support with mixed indicators.

Lululemon was one of today's earnings surprises reporting top and bottom line numbers that beat estimates. The downside is that weak outlook tempered the news but did not stop buyers sending the stock higher. Shares of LULU gained more than 10% on an intraday basis and closed above the short term moving average with a gain of more than 5% . Today's action created a wicked looking upper shadow, indicating bearish activity, but may have help to clear the way for the stock to move higher. It is very possible that, based on the strength in labor markets, LULU will beat earnings later in the year.

ConAgra also posted an earnings surprise but failed to impress investors. The company beat earnings estimates on an adjusted basis and raised guidance but posted an actual loss due to non-cash impairment charges. Shares of the stock tried to moved higher in the pre-opening session but were not able to hold the gains. The stock opened at a recently broken level of support now turned resistance and fell hard from there. Shares of CAG lost about a half percent from yesterday's close but over -4% from the open to the low of the day.

The Indices

Trading was volatile today but volatile in a good way. Today's action took the indices lower but they bounced back and closed with only small losses. The biggest loser was the Dow Jones Industrial Average with a loss of -0.54%. The transports had the additional weight of downgrades aimed at the rail carriers which may have been the cause. Today's action took the index down to the bottom of the 5 month trading range where it bounced. Today's candle has a long lower wick, relative to its body, indicating buyers are present but is not overly strong. The indicators are rolling over but are not strong either and consistent with a range bound index.

The other indices were basically even at the close but exactly. The NASDAQ edged the others out of 2nd place by only a few basis points with a loss of-0.27%. The tech heavy index opened with a loss today, just above support, and after a brief move lower spent the rest of the day moving higher and testing break even levels. The index is now back at support and nearing the long term trend line with indicators setting up for a potential trend following signal. They are indicating near term weakness which could result in further testing of support but unless it and the long term trend line are broken I remain bullish longer term.

The S&P 500 is next up with a loss of only -0.24%. The broad market is now sitting on support at 2,050 but just below the top of the January trading range. This top may prove to be resistance but for now appears to be part of a potential support range. Today's action created both upper and lower shadows with a small body, indicating active buying and selling with a near balance between the too. The indicators are mixed but indicating near term weakness. Momentum is still very weak and the set up is consistent with a possible upcoming trend following entry so any tests of support are likely to be entry points.

The Dow Jones Industrial Average made the smallest loss today, -0.22%. The blue chips also created a candle with long lower shadow and tested support. Today's action brought it down to the 17,600 level before it bounced and set a new one month intra-day low. The indicators are mixed but weak, indicating a possible further testing of support, but also consistent with a trading range. The bottom could be near 17,600 but if this does not hold next target is near 17,250.

The markets have sold off on end of month and end of quarter portfolio shuffling, earnings fears and geopolitics. At least two of these reasons are fleeting and likely not to reverse the market; end of quarter portfolio shuffling and geopolitics. The third, earnings fears, may be unfounded, particularly if earnings trends can be believed, and may be setting us up for another season or two of positive surprises.

There is no doubt that the energy companies are going to see earnings declines but others may not see the weakness they are expecting. According to the data more and more Americans are working all the time. They may not be getting rich or working in the field in which they earned a degree but they are earning money and that's what counts. This is expected to help lead the market back to earnings growth later in the year and why I am still bullish. I'm still keeping a sharp eye on the labor data more than anything else and eagerly awaiting next weeks reports.

Until then, remember the trend!

Thomas Hughes

New Option Plays

Small Caps & Athletic Wear

by James Brown

Click here to email James Brown


iShares Russell 2000 ETF - IWM - close: 122.32 change: -0.15

Stop Loss: 119.65
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 32.7 million
Entry on March -- at $---.--
Listed on March 26, 2015
Time Frame: Exit prior to May option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
The IWM is the exchange traded fund (ETF) that mimics the small cap Russell 2000 index ($RUT). Last year we saw the Russell 2000 underperform its large cap rivals. The S&P 500 delivered a +11.5% gain in 2014 while the $RUT only rose +3.6%. The situation has changed this year. As of last week's high the $RUT was up +5.3% compared to a +2.3% gain in the S&P 500.

Investors have been drawn to small cap companies because they will endure the impact of a strong dollar better than the large caps. Many of the large cap S&P 500 companies are big multi-national firms. Almost 50% of revenues for S&P 500 components are overseas. Yet only 20% of revenues for Russell 2000 companies are outside the U.S. At the same time the U.S. economy, while growing slowly, is still growing faster than Europe.

Technically the IWM was holding up pretty well until Wednesday's market-wide plunge. Traders bought the dip today near its trend of higher lows. The point & figure chart for the IWM is still bullish and forecasting a long-term target of $154.00. We think stocks could see a bounce soon and the IWM could be a great way to play it. Tonight we are suggesting a trigger to buy calls at $123.05. We'll start this trade with a stop at $119.65.

Trigger @ $123.05

- Suggested Positions -

Buy the MAY $125 CALL (IWM150515C125) current ask $1.64
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Nike, Inc. - NKE - close: 99.33 change: +0.34

Stop Loss: 97.40
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 3.6 million
Entry on March -- at $---.--
Listed on March 26, 2015
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
In the athletic footwear and apparel industry Nike is the 800-pound gorilla with annual sales of more than $30 billion. According to the company, "NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE, Inc. subsidiaries include Converse Inc., which designs, markets and distributes athletic lifestyle footwear, apparel and accessories, and Hurley International LLC, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories."

The company's most recent earnings report was March 19th, after the closing bell. NKE reported its Q3 2015 results. Analysts were expecting a profit of $0.84 a share on revenues of $7.62 billion. NKE delivered a profit of +0.89 a share or +16% from a year ago. Revenues were up +7% to $7.46 billion. However, if you back out the currency headwinds, their revenues were up +13%.

The company reported sales growth across every geographical region. Their gross margins improved 140 basis points to 45.9 percent. Management said their online sales are soaring. Nike.com saw its revenues jump +42% last quarter.

The current quarter is NKE's 2015 Q4 (March-July) and the company said orders for Q4 in North America are up +15%, which is above analysts' estimates of +11.6%. Orders from China are up +11%, also above estimates. In the company's earnings release NKE said, "As of the end of the quarter, worldwide futures orders for NIKE Brand athletic footwear and apparel scheduled for delivery from March 2015 through July 2015 were 2 percent higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 11 percent."

One big concern is the U.S. dollar. Sales in Europe were up +21% but when you factor in euro weakness and dollar strength that sales growth drops to +10%. The strength in the U.S. dollar is a major headwind but after NKE's Q3 results Wall Street feels that the company is managing the currency impact very well. The company is forecasting low double digit sales growth in the current quarter.

Wall Street applauded the results and shares of NKE gapped open higher on March 20th to hit all-time highs. There was a parade of bullish analyst comments. Several firms raised their price target on NKE. Here's a brief list of new price target: $106, $110, $115, $116.00. The point & figure chart is more optimistic as it is forecasting at $125.00 target.

Shares of NKE have seen some profit taking, which isn't a surprise considering the market's four-day decline. However, now that NKE has filled the gap, traders bought the dip. This could be an entry point. We are suggesting a trigger to buy calls at $100.25.

Trigger @ $100.25

- Suggested Positions -

Buy the MAY $100 CALL (NKE150515C100) current ask $2.28
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Weekly Chart:

In Play Updates and Reviews

Fourth Decline In A Row

by James Brown

Click here to email James Brown

Editor's Note:

The S&P 500 index declined for a fourth day in a row. All the major indices posted declines. Fortunately, losses today were minor. Commodities continued to rally even through the U.S. dollar bounced.

We have updated our entry strategy on JACK.

NOC was stopped out.

Current Portfolio:

CALL Play Updates

Jack in the Box, Inc. - JACK - close: 95.25 change: -0.48

Stop Loss: 93.85
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 616 thousand
Entry on March -- at $---.--
Listed on March 24, 2015
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

03/26/15: After a really ugly day yesterday JACK didn't see much follow through today. Although relatively speaking shares did lose -0.5% versus a -0.23% decline for the S&P 500 index on Thursday.

The $94.00 level has been support in the past and odds are decent that JACK will bounce from the $94-96 area. Tonight we're adjusting our entry point strategy. We'll use a trigger to buy calls at $96.25 and move our stop loss down to $93.85. Move the option strike down to the 2015 June $100 call.

Trade Description: March 24, 2015:
It's a burger-eat-burger world out there in the fast-food business. Jack in the Box is small fries compared to its larger rivals like McDonalds (36,258 locations) and Wendy's (6,515 locations). Let's not forget heavy weights like Taco Bell, Burger King, Subway, Dairy Queen, and a handful of pizza chains. JACK only has about 2,200 restaurants but it also has a secret weapon and that is the Qdoba Mexican Grill restaurant with about 600 locations. Chipotle Mexican Grill has almost 1,800 locations.

Some of that intense competition being felt by McDonalds and Chipotle Mexican Grill is coming from Jack in the Box and its Qdoba brand, which is growing sharply. A majority of their Qdoba franchisees own multiple stores with 10, 20 even 40 stores common. Enterprising business owners don't open additional stores if the original stores are not working. To have so many owners with high numbers of stores suggests the franchise is consistently profitable.

To be profitable they need solid customer traffic, good food and decent margins. Shares of JACK have been one of the best performers on the S&P over the last year because the company has been posting solid earnings and growth.

With analysts cutting earnings estimates for McDonalds and Chipotle because of competition in the sector it makes sense to look at what has happened at JACK. Over the last quarter and the last year not a single analyst has lowered their earnings estimates for JACK. According to Zacks there has been a noticeable trend of raising estimates. JACK is expected to grow +16% to +20% this year and in 2016. JACK has beaten earnings by an average of 6% over the last four quarters.

Because of the drop in gasoline prices consumers have more money in their pocket. Some of that money is going to end up in the cash registers at these fast food outlets. Customers are also trending towards healthier foods and away from the mass produced burgers and fries at McDonalds. Did you know there are 19 ingredients in McDonalds fries? Surely you didn't think they were just potatoes and grease? Restaurants like JACK and Chipotle are capitalizing on the healthy food craze. JACK store sales rose an average of 5.7% over the last three quarters but Qdoba sales rose +13% for the year and +7.7% in Q4. Zacks rates JACK as a strong buy.

The company plans to open 15 new Jack in the Box stores in 2015. They're also cashing in on Qdoba's success and planning to open 50 to 60 new Qdoba locations. That compares to just 12 new Jacks and 38 new Qdobas in 2014.

It's also worth noting that JACK has an active share buyback program and they reduced the share count by 10% over the last four quarters. Earnings growth rose +20% in Q3 after three years of consecutive earnings growth of more than 30%.

JACK's most recent earnings report was February 17th, when they reported their 2015 Q1 results. Analysts were expecting a profit of $0.87 a share on revenues of $461.2 million. JACK delivered earnings of $0.93 a share. That's a +24% improvement from a year ago. Revenues were up +4.1% to $468.6 million, above estimates. Their operating margins improved 1% to 19.3%.

Management expects same-store sales at Jack in the Box to surge from +0.9% a year ago to +5% to +7% in Q2. Qdoba same-store sales are forecasted to be in the +7% to +9% range. The company raised full-year 2015 guidance to $2.85-2.97 a share compared to Wall Street estimates of $2.84.

Shares of JACK surged on the earnings news and bullish guidance. Since the report that has been almost no profit taking. Now, after more than four weeks of consolidation, the stock looks poised to breakout past major, psychological resistance at the $100.00 mark. Tonight we're suggesting a trigger to buy calls at $100.25.

Trigger @ $96.25

- Suggested Positions -

Buy the JUN $100 CALL (JACK150619C100)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

03/26/15 strategy update: Move the entry trigger from $100.25 to $96.25, move the stop loss from $95.75 to $93.85
We will adjust the option strike to the 2015 June $100 call
Option Format: symbol-year-month-day-call-strike

Lennox International - LII - close: 109.77 change: +0.57

Stop Loss: 106.75
Target(s): To Be Determined
Current Option Gain/Loss: -29.4%
Average Daily Volume = 417 thousand
Entry on March 23 at $110.96
Listed on March 19, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

03/26/15: Traders bought the dip in LII at $108.57 this morning. Shares bounced and managed to outperform the major indices with a +0.5% gain. If both the S&P 500 and LII are positive tomorrow I would consider new positions on a move above $110.25.

Trade Description: March 19, 2015:
LII has been in business for over one hundred years. Lennox Intl. is part of the industrial goods sector. They offer residential cooling and heating products as well as commercial cooling and heating equipment. They are considered a global leader in the heating, air conditioning, and refrigeration markets. The residential business generates just over half of their annual sales.

The last couple of quarters have seen steady growth for LII. You can see the big gap higher in the stock price back in October 2014. That was a reaction to its Q3 earnings results. Their most recent report was February 2nd, 2015 where LII delivered its Q4 results.

Analysts were expecting a profit of $0.99 a share on revenues of $790 million. LII reported earnings per shares grew +32% to $1.02. Revenues were up +8.4% to $812.8 million, led by +13% sales growth in their residential segment.

Chairman and CEO Todd Bluedorn commented on his company's results,

"2014 was a year of strong growth and record profitability for Lennox International, led by 10% revenue growth at constant currency and 31% profit growth in our Residential business. In the fourth quarter, the company's momentum continued, with revenue up 10% at constant currency and total segment profit up 24%. Growth in the quarter continued to be led by Residential, with revenue up 14% at constant currency and profit up 57% from the prior-year quarter. In Commercial, revenue rose 8% at constant currency. Commercial profit was essentially flat with the prior-year quarter on headwinds from customer mix, foreign exchange, and investments related to our entrance in the VRF market. In Refrigeration, revenue was up 8% at constant currency. As expected, Refrigeration profit was down from the prior-year quarter by 45% due to the repeal of the carbon tax in Australia, North America product mix, and a negative impact from foreign exchange. We continue to expect Refrigeration revenue, margin and profit to be up in 2015 on continued growth in North America and improvement in Australia in the second half of the year. For the company overall in 2015, we expect another strong year of growth and record profitability, with strong cash generation for investments to drive growth as well as to return cash to shareholders."
Last year LII earnings rose more than +20% to $4.23 a share. They are forecasting $5.20-5.60 per shares in 2015 (+22.9% to +32.3%) versus Wall Street estimates of $5.42 per share.

Shares have been a steady performer the last few months with a bullish trend of higher lows and higher highs. The point & figure chart is bullish with a $140 target. Today shares of LII are hovering just below round-number resistance at $110. We are suggesting a trigger to buy calls at $110.25.

- Suggested Positions -

Long JUN $115 CALL (LII150619C115) entry $2.55

03/23/15 triggered on gap open at $110.96, suggested entry was $110.25
Option Format: symbol-year-month-day-call-strike

PUT Play Updates

Alkermes plc - ALKS - close: 62.94 change: +0.48

Stop Loss: 69.05
Target(s): To Be Determined
Current Option Gain/Loss: +20.9%
Average Daily Volume = 1.26 million
Entry on March 25 at $64.90
Listed on March 23, 2015
Time Frame: exit PRIOR to May option expiration
New Positions: see below

03/26/15: ALKS hit new two-month lows near $61.25 before bouncing back into positive territory. Broken support near $65.00 should be new overhead resistance.

Trade Description: March 23, 2015:
Biotech stocks have been some of the market's best performers, especially off the October 2014 lows. The group may have gotten ahead of itself with significant gains in recent weeks. The last couple of days the biotech ETFs are flashing what might signal a potential top. Meanwhile one stock that has been underperforming its peers is ALKS.

You might not be familiar with ALKS. The company is part of the healthcare sector. According to their marketing materials, "Alkermes plc is a fully integrated, global biopharmaceutical company developing innovative medicines for the treatment of central nervous system (CNS) diseases. The company has a diversified commercial product portfolio and a substantial clinical pipeline of product candidates for chronic diseases that include schizophrenia, depression, addiction and multiple sclerosis. Headquartered in Dublin, Ireland, Alkermes plc has an R&D center in Waltham, Massachusetts; a research and manufacturing facility in Athlone, Ireland; and manufacturing facilities in Gainesville, Georgia and Wilmington, Ohio."

The company's most recent earnings report was February 24th. They beat expectations on both the top and bottom line. Unfortunate for shareholders management lowered their 2015 revenue guidance. Since its report shares have broken down. The stock has seen a couple of analyst downgrades (or lowered price targets). The point & figure chart has turned bearish and is currently forecasting at $54.00 target.

You can see the gap down on the earnings news. ALKS struggled to rebound and when it did traders immediately sold the stock at resistance. Now it's on the verge of breaking down bellow support near $65.00. The $60.00 level is potential support but there is a chance shares drop toward their 200-dma closer to $55. Tonight we are suggesting a trigger to buy puts at $64.90.

I want to remind readers that biotech stocks can be volatile. We should consider this a more aggressive, higher-risk trade.

- Suggested Positions -

Long MAY $60 PUT (ALKS150515P60) entry $2.15

03/25/15 triggered @ 64.90
Option Format: symbol-year-month-day-call-strike


Northrop Grumman Corp. - NOC - close: 159.31 change: +0.12

Stop Loss: 158.45
Target(s): To Be Determined
Current Option Gain/Loss: -65.3%
Average Daily Volume = 1.4 million
Entry on March 19 at $163.50
Listed on March 18, 2015
Time Frame: Exit prior to May option expiration
New Positions: see below

03/26/15: NOC eked out a very minor gain on Thursday. Unfortunately shares gapped open lower this morning. Our stop was $158.45 and NOC opened at $158.06, immediately closing our play.

- Suggested Positions -

MAY $170 CALL (NOC150515C170) entry $2.25 exit $0.78 (-65.3%)

03/26/15 stopped out on gap down at $158.06
03/19/15 triggered @ 163.50
Option Format: symbol-year-month-day-call-strike