Blue Horseshoe Stocks: FB, TWTR, POWR, ONVO & More

Facebook, Inc.  FB
& Twitter, Inc. TWTR

After we included FB and TWTR in our extended watchlist yesterday, the two social media giants both made positive moves on the day. The uptrends made trading in the options chains of each of these plays a lucrative venture for the session.

For example, looking at some of the options contracts that were relatively close to the money, FB $66 calls went from .48-1.64, and $67 Calls were as low as .21 and closed at .86. TWTR $39 Calls were also moving, trading in a range from  .24 to .90. No matter what big-board stock you’re looking at options in, the heaviest action will usually be close to the money (i.e. Current market price as it relates to the “strike-price” of a given contract)


PowerSecure International, Inc. POWR

POWR was a feature in yesterday’s report, wherein we tagged the stock for its potential to fill in a huge gap on its chart that goes all the way to the $18-range. We began to see the gap beginning to fill as POWR would make a modest intraday run to a high of 9.79.

We’re going to leave this play on our watchlist as we head into the week’s end and beyond, as it still has much ground to recover. A return to pre-gap levels on the chart would still equate to gains in excess of 100% from here, and there isn’t a whole lot in the way of obvious resistance until we hit the 50DMA (12.27).

On the options side of things, we’re particularly interested in the August $10 Calls (Closed at .75 yesterday), because if POWR can test that 50DMA by 08/16, we could be looking at triple-bag gains from those contracts.


Organovo Holdings, Inc. ONVO

We placed ONVO on watch in Tuesday’s report, as we noticed that unlike some of the other players in the 3D printing industry, it had yet to show a significant uptrend on the chart, and we thought it might be due to make a move.

It appears that alert was quite timely, as the stock is beginning to rear its head,  gapping up today to the tune of 13% in premarket trading. Key resistance at the 200DMA (8.07) has been broken, and if we can hold above that mark, the next areas of resistance crop up at 8.65, and 9.35.


Comments on Today’s GoPro IPO

A large portion of the buzz on the Street today is emanating from the highly-anticipated GoPro Initial Price Offering, and we’re going to take the same stance we always take in these situations.

Our M/O when a big IPO comes out has always been to wait in the wings until we can gauge the price action. Once we get a good feel for the nature of the beast, it’s then that we’ll step in and utilize the trends to our best advantage in the options chain. This strategy served us well on both the FB and TWTR IPO’s, so we’ll continue to use it here.


Extended Watchlist:
AA, ROYL, DRWI, AGEN, UNXL