There is a potential bottom in place here after it recently broke through a little wedge it had been forming since October. BBG closed at $27.66 up .58% on the day.

Currently the 20 ma is coming down which will act as resistance and try to push the stock lower again. However, I see BBG breaking above it and heading for the $30 price level again. There is also resistance between $28.50 and $28.70 which it may stall out at, but eventually should break through.

I’m looking at the March 30x calls on BBG as the best strike. It has the most volume and the best spread. Plus with February’s expiring next week we’ll have some extra time on our hands. The options aren’t that liquid on this stock, but as long as there’s a good spread then it shouldn’t be a problem. The March 30x calls closed today at .60 (.60 x .70). Assuming we don’t see a gap up tomorrow I will try to grab some calls around .60 as well and will tweet about if and when I do @optionrunners.

Here’s the chart for BBG via Finviz:

I’m looking at the March 16x calls which closed today at 1.30 x 1.50. SPRD is sitting on major support at the moment in a wedge on the daily. In my opinion the stock is undervalued at this point as it has been beaten down for the past 3 months. Earnings are on February 29th pre market, however SPRD is beginning to look bullish here so it should run up within the next few weeks. With March calls that gives this play plenty of time.

Just something worth noting, there was unusually high call volume on the February 16x strikes today with over 1,100 contracts being traded. This is pretty high compared to any other strikes (calls or puts). Here’s the chart for SPRD: