Blue Horseshoe Stocks: CSX Review & More

CSX Corp. CSX – Options Review

We presented our readers with an options idea concerning CSX yesterday morning in the wake of the company’s solid quarterly earnings report, the CSX Weekly $65-67.50 Calls.

What followed was an exceptionally bullish session for the railroad giant, which facilitated some really nice intraday multi-bag gain opportunities.

Not surprisingly, big moves were exhibited by every single contract in our designated range of six sets:

$65 Calls– Range: 1.64-4.00 – Max Gain: 144%
$65.50 Calls – Range: 1.42-3.54 – Max Gain: 149%
$66 Calls – Range: .91-3.00 – Max Gain: 230%
$66.50 Calls
– Range: .64-2.57 – Max Gain: 301%
$67 Calls – Range: .45-2.02 – Max Gain: 349%
$67.50 Calls – Range: .28-1.65 – Max Gain: 489%


 Walgreens Boots Alliance, Inc. WBA – Recap

Also included in our morning report yesterday were the WBA 08/17 $67.50 & $70 Calls, and those too enjoyed some notable intraday gains for the session.

Despite selecting calls with August expiration, the payoff to this idea was all but instantaneous, with each of our two ideas logging significant intraday runs to the upside. The $67.50′s traded in a range from .93 to 1.45, a gains of 133% while the $70′s went from .40-.65, which works out to a gain of 63%
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Fresh Ideas -  We’ll keep the options train rolling with another pair of fresh ideas this morning:

We’ll track the activity in the EBAY Weekly $36-34.50 Puts after the company fell short on Q2 revs, along with the SPDRA S&P 500 ETF (SPY) 07/23 280.50-281.50 Calls for an idea to watch into next week.


Extended Watchlist:
TCP, DM, RCON, LODE, AVEO, CEI, ACIU

Blue Horseshoe Stocks: Options Roundup & More

Options Roundup

We’re heading into another patch of earnings releases, and we’re going to make our main focus today center around the formulation of some options ideas.
We’ve got three chains targeted, two of which having just reported their quarterly earnings (CSX Corp. CSX and Morgan Stanley MS), and one with huge Form-4 buys coming this week in Walgreens Boots Alliance, Inc. WBA.

As we usually do for options ideas on the heels of an earnings report, we’ll go short term for CSX and MS, and for WBA, select some with an expiration a little further out.

CSX Weekly $65-67.50 Calls
MS Weekly $49-51.50
WBA 08/17 $67.50 & 70 Calls


Extended Watchlist:
CHRS, FWW, NXTD, STRAF, FNKO

Blue Horseshoe Stocks: NFLX Bearish & More

Netflix Inc. NFLX – Options Idea

The main thing hitting our scanners this morning is NFLX, following the company’s post-market earnings report yesterday. Usually when we deal with NFLX, we’re talking about ideas for the stock rising, but today, we’re going bearish on NFLX for a couple of reasons.

First, not only did its Q2 revenues fall short of expectations on the street, but the company’s weak subscriber growth numbers are causing worry as well. While this may only be a temporary lapse for NFLX as the company hasn’t made it a habit of misses on consecutive earnings reports in the past, we do want to form a short term bearish idea for the options chain.

Secondly, from a technical standpoint, the NFLX chart is exhibiting a strong double top formation. This is not a guarantee that a stock will fall, but is generally taken as a bearish indicator as it suggests trouble with breaking a particular area of resistance.

We’re going to tag the NFLX Weekly $365-345 Puts and have them on watch this midweek.


Bottom Watch Plays

Innovate BioPharmaceuticals, Inc. INNT
gapped down hard, and continued to fall even harder yesterday. It may need more than a single session for reversal and rebound, but we’ll definitely want to have it on our radars while it searches out a bottom because the snap-back could be significant.

Just last month, as you can see, the stock made an incredible run from less than $10, to nearly $30/share, so the volatility is definitely there.

SSLJ.com Ltd. SSLJ is the other bottom-play candidate we’ve ID’ed this morning. It too is currently displaying a chart that is pretty self-explanatory. A recent massive gap-down has lead to a bottoming out, while the stock set new lows yesterday before closing slightly higher. Combine that with an RSI that is indicating a stock which is  about as oversold as it gets, and we’re interested in tracking this one for a potential bottom bounce as well.


Blue Horseshoe Stocks: DRI Review & More

Darden Restaurants, Inc. DRI

On occasion, we’ll see an opportunity for a longer term move in a stock, and instead of signaling weekly options, we’ll select a later expiration date. This is what occurred with DRI, when we signaled the DRI 07/20 $100-115 Calls back on the 22nd of last month.

After roughly three weeks, DRI has done little else other than continue to climb, and it has provided some really great chances thus far in these contracts that are set to expire this Friday.

Here are the total gains that have been made possible by this idea to date:

$100 Calls – Range: 3.00-12.30 – Max Gain: 310%
$105 Calls – Range: .90-7.30 – Max Gain: 711%
$110 Calls – Range: .30-2.50 – Max Gain: 733%
$115 Calls – Range: .05-.55 – Max Gain: 1000%


Biocept, Inc. BIOC

We also want to track back to our tag of BIOC from Friday. The stock had been showing the beginnings of some bottom bounce activity earlier in the week, and our hunch that further gains were possible turned out to be correct.

BIOC traded in a daily range from 7.06 on up to a high of 12.15, which represented an intraday pop of 72% on Friday.


Extended Watchlist:
VLRX, RGSE, ATIS, ARNC, PULM, KOOL, SNES

Blue Horseshoe Stocks: DAL Recap & More

Delta Airlines, Inc. DAL

Each day this week, we’ve recapped some options trading success, along with generating a fresh idea. Our streak of success continued yesterday morning, as we brought yet another new set of options ideas to the table, and once again, were met with solid single-session success.

We targeted the DAL Weekly $49.50-51.50 Calls after a solid beat on earnings, and are pleased to report that every single contract contained within that selected range produced multi-bag gains, as it has been with our other earnings related ideas from both this and last week.

$49.50 Calls – Range: .42-1.85 – Max Gain: 340%
$50 Calls – Range: .23-1.40 – Max Gain: 509%
$50.50 Calls – Range: .13-1.00 – Max Gain: 669%
$51 Calls – Range: .08-.67 – Max Gain: 738%
$51.50 Calls – Range: .03-.40 – Max Gain: 1233%
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Fresh Idea :
Wells Fargo & Co. WFC $56.50-54.50 Puts


Genesis Healthcare, Inc. GEN – Bottom Watch

We would like to place GEN on bottom watch this morning, after taking notice of the chart setup on our routine scan this morning.

As you can see from the included snapshot, we have a number of factors contributing to the stock’s attractive bottom setup. The stock has been falling sharply all week, cruising down toward its 200DMA at an alarming rate. Additionally, we have a MACD which is exhibiting unsustainable downward divergence, and an RSI indicating the stock has just entered extremely oversold territory.

This is exactly the sort of setup we look for in potential bottom bounce plays, and we’re going to slot GEN for observation in coming sessions to be ready for that eventuality.


Extended Watchlist:
GLMD, BIOC, MEIP, CPRX, ABIL, ADXS, GOGO BLIN,