Blue Horseshoe Stocks: New Options Ideas & More

PepsiCo, Inc. PEP

Our first order of business this morning is to pat ourselves on the back for yet another perfectly-timed options idea yesterday. Our hunch that the PEP earnings beat would help us score some nice profits paid off almost instantly.

To refresh your memories on that report, we specifically outlined $99, $99.50, and $100 Weekly Calls for daytrading opportunities, and the 02/20 $102 Calls for a little bit of a longer-term possibility. Each and every one of those contracts made a great move as PEP broke through the $100-mark.

Here’s a breakdown of the gains that were possible on the day:

$99 Calls - Range: .62-1.77 – Max Gain: 185%

$99.50 Calls - Range: .46-1.23 – Max Gain: 167%

$100 Calls - Range: .33-1.00 – Max Gain: 203%

02/20 $102 Calls - Range: .20-.37 – Max Gain: 85%

PEP has a strong outlook as well, remember, they just initiated a three-year $12B share buyback program, so we wouldn’t be surprised to see Pepsi’s name come up in future reports. Stay tuned!

New Options Ideas

The Priceline Group, Inc. PCLN

PCLN is the next company we’re looking at on the heels of an earnings beat. We want to milk this earnings season for all its worth, and think we’ve done an excellent job of it thus far.

The range of contracts that we are interested in on the PCLN options chain are the $1065-$1085 Calls ( Yesterday the $1065′s closed at 6.10, and the $1085′s closed at 1.42)

Expedia, Inc. EXPE Impending Buyout of Orbitz Worldwide, Inc. OWW

With EXPE buying out OWW, we want to float another couple of ideas to take advantage of the excitement.

For EXPE, we’ll be monitoring Calls in the range of $83-86, and as far as OWW goes, our interest lies in the $9-11 Call range.

RadioShack Corp. RSCHQ

Our continual coverage of RSHCQ this week yielded potential gains for the third consecutive session yesterday. We brought the stock to our reader’s attention on Monday, at which point folks could have entered the mix for as low as .1251/share.

The stock has set a new high each day since, with yesterday’s trading range running from .185 up to a high of .25. That marked an intraday gain of 35%, and an overall increase of 100% from Monday’s observed low!

Extended Watchlist:
CSCO, TRIP, IMTV (Potential Bottom Play, Interesting News Out)

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