Blue Horseshoe Stocks: New Options Ideas & More

Bon-Ton Stores, Inc. BONT

The markets as a whole have been beaten back this week, but in some cases, that can provide opportunities for stock bargains. One potential candidate that we’re going radar today is BONT, for numerous reasons.

First of which, the stock has just recorded a new 52-week low on the heels of some marginally disappointing Q2 figures, and all of our regular readers are quite aware of our affinity for a good recovery play. BONT also has a relatively low market cap for a company with its assets and revenues, thus it currently has the appearance of being undervalued in our opinion
Lastly we are heading into retail season, a time when department stores such as Bon-Ton generally experience increased sales, with school shopping in full swing and the holidays rapidly approaching. This and other retail stocks have traditionally been a boon to us as fall approaches, often offering a reprieve from the dog days of summer.

Direxion Daily Jr Gld Mnrs Bull (JNUG)

When the markets undergo the kind of distress we’ve been experiencing recently, many investors seek shelter in precious metals. We’ve turned to JNUG in the past in situations like these, so we’re going to be monitoring this fund for as long as stocks continue to struggle.

We’ve formulated the following options ideas for the JNUG chain:

To take advantage of the possibility of a protracted rebound, we’re going track the JNUG Weekly $12-13 Calls for chances at intraday flip opportunities, and in the event of a continued uptrend, we’ll flag the 08/28 $12-13 Calls for a longer-term idea.

Deere & Co. DE

On decreased Q4 guidance and a 40% drop in  quarterly profits, DE is taking a pounding in premarket trading today. The stock is trending below the 200DMA of 89.54, having gone as low as 85.72. If the stock doesn’t manage to rebound above to that 200DMA, we’ll look for it to continue its tumble. As a related options idea, we’re going to tag DE 09/04 $87-84 Puts for observation.

Extended Watchlist:
BTU(Momentum), COSI(Bottom-Watch)