Blue Horseshoe Stocks: BP Options Review & More

BP plc (BP) – Options Review

Our fresh options idea from yesterday morning’s premarket report was was to track the BP Weekly $32-33.50 Calls for possible daytrade opportunities and we got just what we were looking for.

The strength of the company Q1 earnings report kicked the PPS up high enough to produce some solid moves out of each play in our highlighted range of contracts:

$32 Calls – Trading Range: 1.20-1.56 – Max Gain: 30%
$32.50 Calls – Trading Range:  .79-1.10 – Max Gain: 39%
$33 Calls– Trading Range:  .49-.73  – Max Gain: 49%
$33.50 Calls – Trading Range: .20-.39 – Max Gain: 95%

BP closed at its highs and traded even higher in the post-market, and we’re seeing a gap-up in the premarket this morning as well. We’ll look for a continuation of momentum into today’s session, wherein those options could be in line for further gains. In addition to watching those contracts, we may look to roll our strike price up in the event BP can surge past the $34-mark.


Sarepta Therapeutics, Inc. SRPT – Fresh Idea

SRPT caught our eye this morning as were searching for bottom-bounce candidates, as the stock fits the bill to a tee. After being beaten back to new 52-week lows this week, the stock posted a strong recovery session yesterday that has us thinking about potential options plays.

We’re going to monitor SRPT to see if it can test yesterday’s swing high of 11.50. We’re going to be tracking the activity in the SRPT Weekly $10.50 and $11 Calls.

Bonus Bottom-Watchlist:

That same search yielded a couple of other stocks trading at or near their own 52-week lows. We always like a good bounce-play and these are the types of stocks that most often produce them.

Active Power, Inc. ACPW took a pounding into heavily oversold territory yesterday after a sizable gap-down, so we’ll be watching that over the next few sessions for a possible snap-back.

First Acceptance,Inc FAC rebounded a little after setting a new annual low yesterday as well, so we’ll look for possible signs of a continued recovery there.


Extended Watchlist:
WRES, GEVO, UNXL, CRC, DWA(Buyout talks)

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