Blue Horseshoe Stocks: PBR, RSH & Extended Watchlist

Petroleo Brasiliero S.A. (Petrobras) PBR – Options

Our continuous tracking of the PBR option chain never seems to go very long without offering up significant opportunities.  Beginning on August 20th, we placed the Jan.17th $19 Calls on watch for a longer-term trading idea. Following that tag, we would observe those contracts trading at a low 1.23.

This week PBR has pushed to new highs, breaking the $19-mark and maintaining it into its close at 19.21, which landed our $19 Calls at 2.25. That represents a one-week increase of 83% and that figure could stand to inflate even further.

Those who have been following PBR with us since March, when we spied a low of 11.25 will be pleased to know that as of yesterday’s new high of 19.32, the overall increase we’ve seen in the stock amounts to 72%


RadioShack Corp. RSH

We reminded readers of our recent bottom call of RSH yesterday morning, having seen the stock touch its 52-week low at .55. Over the last several sessions it had been regaining some ground, and that pattern continued into yesterday as well.

RSH would trade as low as .91 before pushing through a dollar and closing at its high of day at 1.09. That’s an increase of 20% on approximately 7x its 1-month average volume; a strong move. With a close like that, we’ll be looking for some of the momentum to carry over.

Yesterday’s closing price represents an increase of 98% over our observed low of .55.


Extended Watchlist:
LAS, SGOC, ETRM, CREG, OIBR, SCOK, COBR

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