Blue Horseshoe Stocks: Post-Earnings Options

Spectrum Global Solutions, Inc. SGSI

The first thing we want to do this morning is to go over the performance of SGSI following our detailed report published in the premarket. If you didn’t catch it, we urge you to read it over now (>>View Report).

Aside from going over some of the attractive features of the company, we indicated that the stock had reached a double-bottom area of support, and the activity unfolded as a classic bottom bounce play, complete with some excellent volatility. The stock traded from a low of .265 and hit a daily high of .45. That’s a 70% intraday swing which came on more than four times the monthly average volume.

We’ll be very interested to continue tracking this play in the days and weeks ahead. We’ll look for it to establish higher highs and higher lows, and potentially make a run at the current 50DMA of .6275.

Fresh Ideas

We’ve also got a pair of post-earnings options ideas to add into the mix this morning.

Campbell Soup Co. CPB – Campbell’s beat on earnings even as quarterly profit slid by nearly a third. Along with the help of solid guidance, the stock is up in the premarket. We’ll be tracking the CPB Weekly $38.50-40.50 Calls.

Lowes Companies, Inc. LOW - Lowes had a mixed release as well, but looks bearish even after its own earnings beat, and the news that the company would pull back Mexico operations to focus more on the US Market. At the present time, we’re looking at the LOW Weekly $87-85 Puts.

Spectrum Global Solutions, Inc. (OTCMKTS: SGSI) Special Report

Good Morning Traders! Our primary order of business today is to provide a more detailed overview of SGSI, a stock that we have already mentioned, and had quite a bit of success with, in 2018. SGSI appeared in our premarket report back on April 25th, and we would subsequently observe a huge 135% run from a low of .005 to .0129.

The stock has since undergone a 1-for-200 reverse split (09/10/18), which resulted in an ultra-tight share structure with just over a million shares in the float as of October 18th (>>View Security Details). But before we get into the chart and the stock itself, we wanted to highlight the developments for the company which have us even more interested in SGSI this time around.

Spectrum Global, through its AW Solutions and ADEX Corp. subsidiaries provides telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. With the help of these businesses, Spectrum recorded a monster Third Quarter, receiving more than $5.7 million in new contract awards.

On the subject of increased business, CEO Roger Ponder had this to say: “We continue to see an increase in client orders, both here and in the Caribbean, for the pre-construction and construction services necessary to support future small cell densification, distributed antennas systems (DAS), fiber network expansions and 5G wireless technology projects … With these latest contract awards, we are now tracking well over $35 million in annual revenue and moving closer to profitability.” (Source: Globe Newswire)

The CEO also noted the expectation for even further increased demand for SGSI services due ongoing recovery efforts from an active 2018 hurricane season. The company also recently received a large credit facility which will enable it to more actively pursue these business opportunities.

It is indeed the show of rapid growth in 2018 that has us interested in Spectrum Global at the present time. Recently reported financial results for the period ended September 30, 2018 showed a 300% rise in revenues from the same period in 2017. It also nearly doubled its net income attributable to common shareholders, year-over-year, and reported Earnings Per Share of .04, on a fully diluted basis. (>>View Quarterly Results)

Overall, we see SGSI as a company on the rise, with all indications pointing to a continuation of this impressive recent growth. Now, for a closer look at the chart itself.


SGSI has consolidated in recent sessions, providing us with a potential buy-in opportunity as the RSI begins to indicate that the stock is oversold. We’ve seen two marked uptrends in as many months, and it appears as if SGSI is preparing for another leg-up.  A theoretical return to highs established last month, would mean gains of over 300% from current pricing.


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Blue Horseshoe Stocks: The Week’s Top Winners

The Week’s Top Winners

Cisco Systems, Inc. CSCO – Among our fresh options ideas that we provided readers in yesterday’s premarket report, was a range of calls in the CSCO chain after the company issued much better Q1 figures than were expected.

Our targets were the CSCO Weekly $45-50-47.50 Calls and not only did they all produce instant opportunities for single-session profits, but those gains ended up being absolutely huge multi-bag intraday runs:

$45.50 Calls – Range: .40-1.33 – Max Gain: 232%
$46 Calls – Range: .20-.91 - Max Gain: 355%
$46.50 Calls – Range: .10-.54 – Max Gain: 440%
$47 Calls – Range: .03-.30 - Max Gain: 900%
$47.50 Calls – Range: .03-.11 – Max Gain: 266%

We also had signled the Amarin Corp AMRN Weekly $15.50-17 Calls  and those too produced multi-bag rips across the board:

$15.50 Calls – Range: 1.22-3.90 – Max Gain: 220%
$16 Calls – Range: 1.00-3.00 - Max Gain: 200%
$16.50 Calls – Range: .69-2.90 – Max Gain: 320%
$17 Calls – Range: .52-2.00 - Max Gain: 285%

Today, we’ll look to potentially roll up our strike prices on AMRN to the Weekly $17 & $18 Calls*.

Bonus Idea:
PCG Weekly $24-26.50 Calls*

*NEVER trade weekly options on a Friday unless you are expert-level trader with disposable funds

Extended Watchlist:

Blue Horseshoe Stocks: WMT, CSCO & More

 Options Ideas

We’re sticking with options as we head into the end of what has been quite a difficult week for stocks in general. All things considered, we still feel it’s the most probable way of coming by short term gain opportunities, even amid less-than-ideal conditions.

Walmart, Inc. WMT – Walmart reported its Q3 earnings this morning, and looks like our top target for the day as a result. Heightened sales, both brick and mortar and via, was the name of the game, as the company jacked up guidance on profits for the 2019 full year.

These developments are definitely moving the needle this morning, so we’re going to want to track the WMT Weekly $101-104 Calls.

Cisco Systems, Inc. CSCO – In its own Q1 report in the post-market yesterday, we have an untraded-upon earnings and revenue beat for CSCO, so we’re also going to formulate an idea here.

In conjunction with a solid multiple bottom formation on the chart, the present conditions may favor our chances for a quick strike trade on the CSCO Weekly $45-50-47.50 Calls.

Bonus Idea:

AMRN Weekly $15.50-17 Calls

Extended Watchlist:

Blue Horseshoe Stocks: Big Options Winners

Successful Options Ideas

We formulated some quick-strike, post-earnings options ideas for Home Depot and Advanced Auto Parts in yesterday morning ‘s premarket report. Even with shaky market performance like we’ve seen this week, a good earnings play can go a long way, and we proved it yet again.

Both ideas we submitted produced instant results, with the HD contracts we signaled providing the biggest potential profit by far. Those gains were as follows:

Home Depot, Inc. HD Weekly $180 Calls
.40-3.00 -  Max Gain: 650%

AAP Weekly $170 & $175 Calls
$170′s Range: 9.89-14.83 -  Max Gain: 50%
$175′s Range: 5.80-9.90 -  Max Gain: 71%

More Fresh Options Ideas

We’ll keep the post-earnings options train rolling with another pair of ideas this morning. Especially during times of high market uncertainty, earnings related options plays are our go-to targets.

Canada Goose Holdings, Inc. GOOS Weekly $66-69 Calls
Macy’s Inc. M 12/07 $37 & 37.50 Calls

Bonus Idea:
We’ll also signal some SPY calls that will be in play provided it holds above $270 upon the open. In that event, we’ll be looking at the SPY Weekly $272-274 Calls.

Extended Watchlist: