Monday’s Watchlist: Options Ideas, Momentum Plays

Options Trading: Lululemon Athletica, Inc. LULU Calls
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Last Monday, we mentioned an Options Trading idea, as we were looking at the LULU $65 Calls. We believed that LULU stock could head up past $67 and push toward the $68-level. On Wednesday, the $65 Calls were trading below .30. By Friday, we got the move that we were looking for out of the stock (hit high of 67.90), pushing those Calls as high as 2.80 as shown on the intraweek chart below.

This play was was a good example of why we like to monitor options contracts as they approach expiration, as they can exhibit some of their most volatile activity during that period. Even those who didn’t catch on until Friday could have walked away with up to 100% in intraday gains.

Celsion Corp. CLSN
&
OXiGENE, Inc. OXGN

Each of these stocks, after appearing in Friday morning’s extended watchlist would go on to perform well for the session:

CLSN traded from a low of 1.35, and spiked 15% to 1.55.

OXGN saw a daily range from a low of 3.31, and touching a high of 3.81 for a possible gain of 16%

TechnoConcepts, Inc. TCPS
&
TheDirectory.com, Inc. SEEK

Both of these stocks qualified as momentum plays last week, thus will be on our list of stocks to monitor as we begin the new trading week:

On Friday, TCPS traded in a big range from .008-.04 on roughly 4X its 3mo. average volume.

SEEK went on a run last week as well, and on Friday traded massive volume, to the tune of more than 10X the 3mo. average.

Options Trading Side Note:
Following tomorrow’s market close Apple earnings will be released, so we are eager to see how AAPL stock reacts to those figures. If they will fail to impress, we should see a dip followed by a bounce- should they exceed the Street’s expectations, we will likely be looking at a gap-up and run on Wednesday morning. Either way it shakes out, we will be looking to take advantage with properly timed Calls placed in the money.

Extended Watchlist:
IWEB, NRBT, BTG, BCRX

CLNO, IWEB & Extended Watchlist

Cleantech Transit, Inc. CLNO

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New subscribers might not be familiar with CLNO, a stock that we rode for gains in excess of 5000% over a four month period this spring to early summer.

On Tuesday, we caught CLNO coming off of its 50DMA, and added it to our extended watchlist. After being as low as .12 at that time, it has managed to make higher highs and higher lows each day since.

Yesterday saw a high of .265 (+121%), and the stock closed strong at .26, just slightly below the HOD. As is usually the case when we see good momentum at the end of a session, we’ll want to keep CLNO on watch this morning for a continuation of the trend. We’ll need to see the stock test and overcome resistance at the previous swing high of .365, and from the look of the chart, there seems a fair chance of that occurring.

We can see the RSI is rumbling toward the power zone, and the MACD appears to be converging for a cross as the blue bars on the histogram prepare to flip up to the bullish side.

IceWEB, Inc. IWEB
We’ve been following IWEB all week long, and yesterday the stock continued to make higher highs and higher lows, closing at the high of day. Similarly to the previously mentioned play, IWEB is currently sporting a chart with several indicators pointing toward bullishness. In addition to breaking above the 100DMA yesterday, the RSI is making its way towards the power zone, and the Accumulation/Distribution has begun to pick up.

The previous swing high of .0355 is going to be an area of significant resistance. Should it break past that point, there’s easily a shot that the stock could find its way back to the 200DMA around the mid-.04 range.

For those who need to refresh their memory, we’ve been following IWEB since Tuesday of last week, when we released a special report on the stock after catching it coming off of its 52-week lows.

Extended Watchlist:
SNDY, AMS, CLSN, OXGN,

BRND, AXLX & Extended Watchlist

Premier Brands, Inc. BRND
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BRND continues to impress, for those of you who might have missed our spot-on coverage, let us break it down for you bit by bit:

We caught this play last Thursday morning. We had dug up a PR which stated that NBA legend Dennis Rodman was endorsing a new line of premium vodka with Premier Brands, as well as a series of post-market tweets from Rodman’s Twitter account. Our initial alert that morning would prove to be perfectly timed, as we witnessed an unbelievable run from a low of .0043 all the way up to.0359 the following day.

That 735% move had us on the lookout for an inevitable pullback and bounce, which we stated in last Friday’s morning report. Sure enough, BRND had receded back to close at .0115 on Friday.

Flash forward to Monday morning: We mentioned that we wanted to see BRND hold support above a penny to stay interested. It certainly did, and we were afforded the chance at several subsequent bounce opportunities, the percentage gains of which totaled nearly 200%

That brings us up to yesterday’s activity. As we can see on the intraday chart below, after dipping as low as .014 in the first 75 minutes of trading, it proceeded to attain a high of .022 by lunchtime (+57%). If one chance at a sizable gain wasn’t enough, the stock would pull back to .0155 before pushing to a late-afternoon high-of-day (.0225) and closing strong at .022.

Axiologix, Inc. AXLX

AXLX is another play we’ll be looking at this morning. It’s been awhile since we ran across a sub-penny stock with bottom-play potential.

AXLX is coming off of its low for 2013, and might be a good one to watch as spikes up to 100% higher the current level of .0004 have been recently observed. An influx of volume could easily cause AXLX to test its 200DMA at .0008 if resistance at the 50DMA of .0005 is broken.

You can also take a look at the video chart we prepared on AXLX:

 

Extended Watchlist:

IWEB, MARA, PPHM, MEET, TSLA($125 Calls if it can continue uptrend)