Blue Horseshoe Stocks: PSID Update, Options Recap & More

PositiveID Corp. PSID

We want to look at PSID from another angle this morning as we’re noticing a situation cropping up in international media that has the potential to affect the stock and its perceived value greatly.

For the better part of four months now, there has been a rising biological threat occurring in our own hemisphere. The Zika Virus is native to sub-Saharan Africa but is currently spreading across North, Central and South America at an alarming rate, according to the World Health Organization (WHO).

Some estimates have pinned the number of potential cases as high as four million, and thus far there have been reported cases in 21 countries from Mexica to the Caribbean to Brazil, where it appears to be the greatest threat at the moment (>>View Article)

. There is no cure, no treatment, and the disease is currently thought to spread exclusively via one particular species of mosquito. The ability to detect the virus quickly and without the need for brick-and-mortar lab testing could obviously be a useful tool in eventually bringing it and its effects under control, which are admittedly terrifying. Enter PositiveID and the Firefly Dx. We witnessed a monumental run from PSID back in 2014 when the Ebola scare reached global proportions (>>View Article) and we could be seeing the beginnings of a new scare with Zika.

While Zika is a relatively mild affliction by comparison, it’s one of its main side effects that is the reason for such concern. The infected person doesn’t feel much more than flu-like symptoms, and it clears itself up without treatment in a matter of days or weeks. However, the virus has been linked to a particularly horrific birth defect known as microcephaly, wherein pregnant women are contracting the virus and subsequently giving birth to infants with malformed skulls due to lack of cerebral development. Since October, there have been at roughly 4000 reported cases in Brazil alone. The link between the virus and microcephaly isn’t yet fully understood, adding to the potential for panic.

The Zika Virus story is now making headlines worldwide, and is likely to soon become a “household name” as experts are preparing for the possibility of an actual pandemic. Given that PSID’s Firefly Dx is rapidly approaching completed development, and the fact that once released it would be the only such device that could be configured to detect Zika in a matter of minutes instead of hours, it could offer medical professionals a real edge in combating this growing health emergency.

Stay tuned for future updates on PSID. If you didn’t catch Monday’s PSID Report  we suggest checking that out now.

Options Updates

We also want to congratulate any of our subscribers who caught our excellent options ideas in yesterday’s premarket report. We’ve been striking gold on the options front all week long, and yesterday served to continue that trend.

Facebook, Inc. FB – Our idea to track FB Weekly $105-110 Calls worked out incredibly well. Regardless of which of the six strike points was chosen, enormous single-session profits were there for the taking as FB stock itself traded up from the $104 to the $110-range.

$105 Calls – Trading Range: 1.07-5.45  – Max Gain: 409%
$106 Calls – Trading Range: .78-4.55 – Max Gain: 483%
$107 Calls – Trading Range: .47-3.61 – Max Gain: 668%
$108 Calls – Trading Range: .27-2.79  – Max Gain: 933%
$109 Calls – Trading Range: .15-2.13 – Max Gain: 1320%
$110 Calls – Trading Range: .07-1.40 – Max Gain: 1900%


Under Armour, Inc. UA – Our UA ideas were good as well, though they didn’t trade with quite the same liquidity and intensity as the FB options. Still, each of our monitored contracts in the range of UA Weekly $75-79.50 Calls did make appreciable intraday swings to the upside ranging from 118% ($75’s from 4.30-9.36) to 1700% in the case of the $79.50 Calls which ran from .25 to 4.62.

Extended Watchlist:

Blue Horseshoe Stocks: Cleaning Up on Options Trading

Options Winners

We’ve been firing on all cylinders with regard to our short term options ideas recently. Yesterday we offered up some ideas for AAPL and BIIB and in both cases, multi-bag intraday returns were attainable no matter which set of contracts were chosen from our target ranges.

Apple, Inc. AAPL

We went bearish on AAPL for a number of reasons, chief among them being a disappointing earnings release, and negative statements by CEO Tim Cook. We were looking for activity in the range of the AAPL Weekly $97-95.50 Puts provided the stock continued to backslide, and were duly rewarded for the idea.

$97 Puts – Trading Range: 1.58-3.72  – Max Gain: 135%
$96.50 Puts – Trading Range: 1.27-3.27 – Max Gain: 157%
$96 Puts – Trading Range: 1.05-2.85 – Max Gain: 171%
$95.50 Puts – Trading Range: .83-2.45  – Max Gain: 195%
$95 Puts – Trading Range: .65-2.10 – Max Gain: 223%

Biogen, Inc. BIIB

On the other side of the fence, BIIB was gapping up hard in the premarket and we liked the chances of seeing some more upside. We highlighted BIIB Weekly $267.50 through $280 Calls and it worked out in spades.

$267.50 Calls – Trading Range: 6.30-17.50  – Max Gain: 178%
$270 Calls – Trading Range: 4.70-15.30 – Max Gain: 226%
$272.50 Calls – Trading Range: 3.45-12.30 – Max Gain: 257%
$275 Calls – Trading Range: 2.45-10.50  – Max Gain: 329%
$277.50 Calls – Trading Range: 1.74-8.45 – Max Gain: 386%
$280 Calls – Trading Range: .99-7.00 – Max Gain: 607%


Fresh Ideas*

Under Armour, Inc. UA – We’ll go ahead and signal some new options ideas this morning as the opportunity has presented itself in the form of an impressive Under Armour earnings beat. Wildly exceeded expectations are fueling a premarket gap-up, and we’re going to be taking a look at UA Weekly $75-79.50 Calls provided UA holds that $75-mark on any early dips.

Facebook, Inc. FB –  FB is also cruising in early trading today on the strength of a well-received earnings release of its own. We’re going to respond by tagging FB Weekly $105-110 Calls for observation as we head into week’s end.

*Pertaining to both of the preceding ideas, remember to always consider the inherent elevating risk associated with trading weekly options contracts as the end of the week approaches!

Extended Watchlist:

Blue Horseshoe Stocks: Options Review, Fresh Ideas & More

Speed Commerce, Inc. SPDC

We were just reminding our readers about SPDC yesterday, which we’ve now tracked for three sessions since  our premarket report on Friday. We observed a low of .018 that day, and the stock hasn’t looked back since.

After another excellent PPS-enhancing performance on Monday, we suggested our subscribers continue to watch yesterday for the possibility of a protracted uptrend, and what followed was the biggest single-session move yet, and new highs for SPDC.

From an early low of .038, the stock rushed to .057 in the closing minutes. That represented a 50% intraday pop, and an overall three-day increase above our observed low of .018 amounting to 217%

Options Ideas

Rambus, Inc. RMBS – Recap

RMBS was the subject of an options trading idea we submitted yesterday morning, after noticing the stock gapping up in the premarket on a post-market earnings beat from the prior day. We targeted the RMBS 02/19 $12 Calls, and those contracts traded in a range from .37-.59; good for intraday gains of up 59%

Apple, Inc. AAPL

It’s been awhile since we signaled any AAPL options, but we’re presented with an opportunity this morning as the stock is down considerably in early trading on deflated sales forecasts, amongst other things. We’ll look for chances on the bearish side of things, namely the AAPL Weekly $97-95.50 Puts to try to take advantage of the consequences of shaken investor confidence.

Biogen, Inc. BIIB

An impressive beat on revenues and EPS is leading BIIB to a notable gap-up this morning,  we’ll definitely want to look for the possibility of a nice intraday upswing from the stock. To ensure we catch the heaviest action we’ll begin by monitoring every set of contracts in the range of BIIB Weekly $267.50 through $280 Calls.

Extended Watchlist:

Blue Horseshoe Stocks: SPDC Update, Options Ideas & More

Speed Commerce, Inc. SPDC

We tagged SPDC for observation in our premarket report on Friday, and what has followed is two consecutive days of upward momentum.

We observed a low of .018 on Friday morning, and a subsequent high of .0289 for an intraday gain of 61% Then yesterday the stock traded in a range from .0289 to .041, for a 42% intraday rip. All told, SPDC made an total session-over-session swing of 128% since we began tracking the stock.

We’ll continue to do so for the time being- the recovery off of recently recorded annual lows has been rapid, as can be seen on the following chart snapshot. A return to PPS-levels of just a few weeks ago would mean significant gains from the current price, so we’ll have our eyes peeled for the possibility of a continued uptrend.

Fresh Options Ideas

After poring over the earnings calendar from post-market yesterday and this morning, we came across a pair of interesting plays for which we’ll formulate a couple of correlated options ideas.

FirstMerit Corp. FMER

Despite an earnings miss this morning, FMER is flying in premarket trading on concurrent news of a $3.4B buyout/merger with Huntington Bancshares in a deal that will effectively create the state of Ohio’s largest regional bank. We’re going to tag the FMER 02/19 $17.50 and $20 Calls for potential dip-and-rip scenarios.


Rambus, Inc. RMBS

Regarding RMBS, we’re seeing a classic earnings-beat gap up to the tune of 7% in early trading today. Better than expected figures were released post-market yesterday, so we’ll be tracking a set of contracts here as well. Specifically, the RMBS 02/19 $12 Calls.

Extended Watchlist:

Blue Horseshoe Stocks: A Special Report

PositiveID Corp. PSID

As a special point of focus today, we’re going to be talking about PSID, and the reasons for our attraction to this stock are numerous. From fundamentals to technicals, PSID has the look of a high potential play, so this morning we’ll outline what we feel are some of the highlights to provide our readers with a good jumping-off point from which to start their own due diligence.  


One of the first things that strikes us with regard to PSID is the frequency and substance of recent press releases. The company appears to be taking a proactive and multifaceted approach to its growth including two complementary acquisitions, as well as the announcement of other updates regarding its existing technologies (pictured below).

Prior to the end of 2015, PSID‘s two primary products under development were the Firefly Dx handheld point-of-need diagnostic device, and the M-BAND bio-threat detector.

The M-BAND is serious business, detecting potentially harmful biological agents in high-traffic public locales such as airports and subway terminals. It was developed with funds attained via the Department of Homeland Securities next-gen BioWatch program, and PSID has an exclusive licensing and manufacturing agreement with the Boeing Company.

The company’s working prototype Firefly Dx has proven successful at detecting influenza, MRSA, E.coli, and several other harmful pathogens without the help of a brick-and-mortar lab, and according to the company’s projections a fully field-testable unit will be functional later this year. When perfected, it will provide a highly synergistic complement to PSID’s other recent acquisitions.

The first of which was in the beginning of December, when the company acquired Thermomedics, Inc. and its flagship product, the FDA-cleared Caregiver® non-contact infrared thermometer. (>>View PR)

Just prior to the new year PSID announced another exciting acquisition that has the ability to take its business to the next level, as it ties the company’s other technologies together. E-N-G Mobile Systems has been in business for 25 years, and has averaged $4M in revenue annually with its mobile laboratories. With the added facility of ambulatory lab systems, PositiveID’s ability and effectiveness in addressing the ever-growing necessity for rapid biological threat detection in the field should be stronger than ever. (>>View PR)

In addition to the expansion of its portfolio, PSID has also been making fundamental strides, as recent filings clearly indicate. The 2015 fiscal year brought increased revenues and cash flow, and the recent acquisitions should serve to bolster those figures even further in 2016. (>>View Filings)

We also want to look at the PSID chart, which in and of itself would be reason enough for us to track this stock. Over the past three consecutive sessions PSID has recorded higher highs and higher lows, building support off of its recently established 52-week low. This is exactly the type of ripening bounce-play setup that we search for on a daily basis.

As is evident on the snapshot below, the stock also has a documented history of making rapid moves to the upside. We could be catching this play at a prime moment for a continued recovery, so it will be among our top interests in sessions to come.




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