Blue Horseshoe Stocks: Options Review & More

Walmart, Inc. WMT

At the top of our report yesterday was an idea we formulated for the WMT options chain, the WMT 03/16 $90-93 Calls. WMT stock had been under pressure in the previous two sessions, and we got the start of the rebound we were looking for.

We’ll want to see that trend confirmed today with the registering of higher highs and higher lows, but as it stands, here are the gains that our idea yielded on the first day.

$90 Calls – Range: 2.70-3.90 – Max Gain: 44%
$91 Calls – Range: 2.30-3.20 – Max Gain: 39%
$92 Calls – Range: 1.78-2.56 – Max Gain: 44%
$92.50 Calls – Range: 1.62-2.26 – Max Gain: 40%
$93 Calls – Range:1.39-2.00 – Max Gain: 43%


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Avis Budget Group, Inc. CAR

We also said we were going to look for opportunities in the CAR 03/16 $42-44 Calls yesterday morning, and those got off to a good start as well. After gapping up considerably, the stock continued to run, facilitating the following intraday moves on our first day of observation.

$42 Calls – Range: 2.80-3.90 – Max Gain: 39%
$43 Calls – Range: 2,21-3.11 – Max Gain: 41%
$44 Calls – Range: 1.70-2.60 – Max Gain: 53%

Based on the premarket activity we’re observing this morning, we’d expect CAR to extend its gains, and see further increases in these contracts.



Progressive Care, Inc. RXMD

We also had RXMD in yesterday’s premarket report via our Extended Watchlist, and saw some good first day activity there as well. It caught our eye because of the huge run it had already previously been building up. We thought we could ride the wave, and it worked out nicely.

The stock traded up from a low of .0663, and went as high as .086, for a move of 30% on the day, and being in blue skies at the moment, there’s no telling when this ride will let up.


Extended Watchlist:
MYSZ, CHK, MOMO, COGT, OREX, TTD, LBCC, CORT

Blue Horseshoe Stocks: WMT Calls & More

Walmart, Inc. WMT

After a period of a couple of trading sessions where WMT has taken considerable abuse on the chart. After appearing to be gearing up to make an impressive run, the stock gapped down considerably on Tuesday and the backslide persisted through yesterday.

This major selloff has brought the stock down to its lowest PPS since November, and had us thinking about a range of calls to slate for observation in the days and weeks ahead. We’re going to signal the WMT 03/16 $90-93 Calls, which should be in line for some solid activity if Walmart mounts the recovery that, at this point, looks very possible.


Hertz Global Holdings, Inc. HTZ

We would like to put HTZ on watch as a possible bounce play this morning. As you can see on the included chart snapshot, the stock is giving off a strong double-bottom signal, and just fell below its 200DMA yesterday.

We’re going to monitor the activity here closely, because as you can see, there is a considerable amount of room to run to the upside, and the stock has been approaching heavily oversold territory.

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Avis Budget Group, Inc. CAR

While we’re on the subject of car rental agencies, our eye has also been caught by Avis, whose stock just came down to an area of trendline support, and also posted a Q4 earnings beat.

We’re going to look for opportunities in the CAR 03/16 $42-44 Calls in coming sessions.


Extended Watchlist:
AIMT, SGMO, ETE, PBR, RXMD, STMP, MLNX, MBRX

Blue Horseshoe Stocks: Bottom-Plays & More


Big Board Bottom Plays

Ra Pharmaceuticals, Inc. RARX – The first of a pair of NASDAQ-listed stocks with nice chart setups, RARX has actually been building a solid recovery trend off of its bottom since last week. A couple of Form-4 filings around the same time show two huge $15M blocks purchase by two separate insiders at the stock’s lows.

Meanwhile, there’s still a fair bit of ground to recover from what it has lost in the past ten weeks or so. RARX flirted with its 50DMA yesterday, so we’ll be looking for a break past that point, with indicators on the chart suggesting a fair chance of that happening.


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Liberty Tax, Inc. TAX – We’ve also noted the recent bludgeoning of TAX, which has been in a general downtrend for the better part of five months. In this case, we haven’t reached bottom-bouncer status yet, but more of a bottom-watch. At present, the stock is now heavily oversold, on the heels of the dismissal of its CEO.

With tax season upon us, this is the time of year that we’d expect companies such as TAX to do their highest volume of business, so now seems as good a time as any to track this play for a bottom-bounce.



Advance Auto Parts, Inc. AAP

The last time we talked about AAP was a few months back, and we managed to find some nice gain opportunities within the AAP options chain following the company’s strong quarterly report.

AAP reported quarterly earnings once again this morning, and we thought we’d take another crack at it, by signaling the AAP 03/16 $105-115 Calls for observation.



Extended Watchlist:
NETE, CVRS, LPSN, EQT, KL, CRMD