Blue Horseshoe Stocks: Earnings Season Continues to Yield Results

Sarepta Therapeutics, Inc. SRPT – Update

We caught SRPT yesterday after the stock had just registered a new annual low on Tuesday, and recognized an opportunity to pounce on some short-term gains using the options chain. We said we wanted to see the stock flirt with the swing high from the previous session, and it did just that. Our options idea of tracking the SRPT Weekly $10.50 and $11 Calls worked out immediately.

We witnessed a range on the $10.50′s from .40-1.35 (+237%) and from .39-1.01 on the $11′s, an intraday pop of 159% But those big gains are going to pale in comparison to the new highs we’re going to witness this morning as the stock has gapped up with vigor in the premarket this morning to a new high of 14.40.

In the stock itself, that’s an impressive overnight swing of 38% and as we said, those options contracts are sure to show us new highs as things get going today. All in all we’d have to say that we made a heck of a bottom call on SRPT, and will continue to track its progress.


Options – More Updates, More Ideas

We also want to follow up with the Idea we had from earlier in the week, the BP Weekly $32-33.50 Calls, which already provided us gains ranging from 30-95% on Tuesday. There were intraday profits to be made for the second straight day, which were as follows:

$32 Calls – Trading Range: 1.55-1.88 – Max Gain: 21%
$32.50 Calls – Trading Range: 1.10-1.40 – Max Gain: 27%
$33 Calls– Trading Range: .62-1.06 – Max Gain: 71%
$33.50 Calls – Trading Range: .35-.57 – Max Gain: 63%

We had a good two-day run with BP, but with Q1 earnings season in full swing, its time to turn our attention to the next opportunity.

That’s going to come in the form of Facebook Inc. FB options. The stock is gapping up to new all-time highs at the moment in the wake of its own earning beat, currently trading over $121 in the premarket.

Provided it holds support at the previous all-time high of 117.59 on any pullbacks, we are going to want to pay close attention to the FB Weekly $118-122 Calls. If the momentum appears strong enough, we may even consider rolling up our strike price to the $123-level and higher, as the situation dictates.


Others to Watch

Finally, we have a couple of other plays to add to a watchlist this morning. Aeterna Zentaris, Inc. AEZS, and Immune Pharmaceuticals, Inc. IMNP.

We first began tracking AEZS in 2016 in late January, shortly before witnessing a low of 2.71 (02/11). The stock has made a couple of nice moves in recent months, and is currently gapping up in the premarket to new high 4.87. That represents an 80% over our observed low from a few months back. We’ll have our eye on its activity as things kick off this morning.

In the case of IMNP, we’ve got a stock that has seen a good deal of insider buying, and is trying to maintain an uptrend off of its recent lows over the past few sessions. It’s gapping up slightly this morning to .43, so we’re going to want to watch for a break of the current 50DMA of .46 today.

We also want to pay attention to Dreamworks Animation SKG Inc. DWA which we signaled in yesterday’s report over buyout talks that were occurring. The buyout has been confirmed, so hold on to your hats if you made entry at yesterday’s prices!


Extended Watchlist:
MITK, FIT, DLB, ABKI(Bottom-bouncer)

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