Monday’s Watchlist: Options Ideas, Momentum Plays

Options Trading: Lululemon Athletica, Inc. LULU Calls

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, AAPL & Extended Watchlist

Cleantech Transit, Inc. CLNO

CLNO remains on our radars this mid-week. The stock has provided us with the chance at thousands in percentage gains in recent months.

We wanted to be sure to alert everyone about a forthcoming increase in the number of CLNO shares. The company has announced that it will undergo a 5 for 1 forward split, so we want to be cautious moving forward. After the split, we expect the stock price to be roughly 5X cheaper than where it sits now. On the positive side, it gives the company more wiggle room with regard to obtaining financing for business activities, so we are going to want to continue following the storyline on CLNO to see how it all plays out

Click here for a full copy of the filing.


Apple Options
Apple has powered upward so far this week, and this morning is trading up premarket, currently at $419.50. As the market opens, we will gauge the trend, and should it appear as if the upward momentum will continue, we will most likely turn our attention to the $420 Calls.

Yesterday those Calls traded in a range from .80 to 4.70 before falling to as low as 1.10 and closing at 2.60. We’ll look use that volatility to our advantage as we attempt to ride Apple to sizable profits as we have so many times in the past.


Extended Watchlist:
ZNGA, OCZ, FRO,

Blue Horseshoe Stocks: Afternoon Updates

Apple, Inc. AAPL Options

Apple CEO Tim Cook and his associates handled this afternoon’s Senate inquiry as well as could be reasonably expected as committee members pulled back the curtain on Apple’s international tax status. They simply stated that Apple has done nothing seedy (if you’ll forgive the pun) and that any problems lay within the existing corporate tax code.

The stock did dip early in the morning as we suspected it might, for a time there was an opportunity to make a quick profit on the Puts we mentioned as the stock fell below the pre-market low. Once AAPL found support off of the $434 level, and got back above $435, it became clear that the action was moving back to the Calls. All in all, the day’s activity has thus far played out very similarly to our morning predictions.

For now, we are sticking with the $435 and $440 Calls as intraday trading ideas, while still keeping in mind what we said yesterday; that if Apple could break past $445, then we’d be looking to move up to the $445 and possibly $450 Calls. As of the release of this publication, AAPL last traded at $442.80


TechnoConcepts, Inc. TCPS
We put TCPS on Blue Sky Breakout alert this morning, and turned out to be mighty glad that we did. Opening up at .0026, the stock pulled back ever so slightly to .0025, before raging upward to touch a high of .0061, for a rapid intraday gain of up to 144%


Ascent Solar Technologies, Inc. ASTI
ASTI came off of our solar watchlist from this morning, and traded in a range from .96-1.33, which represents a move of 39%

AAPL, AUY, TCPS, EVRM, RSOL & Extended Watchlist

Apple, Inc. AAPL Options
Our coverage of Apple Options just got a whole lot more interesting. At the time of our afternoon updates yesterday, the $440 Calls we were looking at ran from 7.75 to 9.05, adding 17% to our gains. What happened following the market close was quite unexpected.

Most of you will have already heard about the big headline now surrounding Apple- because of the company’s exploitation of foreign tax loopholes, it has avoided paying billions in U.S. taxes on profits that it has moved to three shell companies in Ireland. The bills Apple has avoided through what is being referred to by some as ‘tax gimmickry”, could play a role in the reform of US corporate tax law, but it is yet unclear as to whether Apple will be subject to some form of penalty for this financial sleight-of-hand. CEO Tim Cook is set to appear before a Senate subcommittee to respond to the accusations.

Regardless of the final outcome of this latest development, we are readying ourselves for the possibility that Apple may see an interuption in its recent bullish run. As of this moment, it is uncertain as to how this will affect the overall trajectory of the stock, thus we want to remain extremely vigilant. Should this story not have a great effect, we would still be looking at the $435 and $440 Calls. However, if AAPL doesn’t hold support at this morning’s pre-market low of 438.24, we will need to turn our attention to Puts at the same strike prices of $435 and $440.

The key here will be quickly thinking on our feet once a diagnosis of the current conditions can be made.


Yamana Gold Inc. AUY Options
Also among yesterday’s Options Trading coverage was Yamana Gold. The AUY $11.00 calls we alerted in our afternoon update report (trading at .60 at the time) ended up closing at their high-of-day (.70), for a quick gain of 17%


TechnoConcepts, Inc. TCPS
TCPS is a momentum play that we are putting on watch today for a possible continuation of its recent surge. The stock broke its 3-year high yesterday, and has been seeing an increase in volume over the past few sessions. We’d like to keep a cautious eye on this one moving forward, as it is currently in Blue Sky Breakout mode.


Evermedia Group, Inc. EVRM
EVRM hit a new high of day into the close yesterday. We like the activity we’ve observed since Friday, as the stock has held support off of .0012, and yesterday hit a high of .0018, marking an increase in our possible gains from 33% to 50% We want to continue to watch EVRM moving forward.


Real Goods Solar, Inc. RSOL
RSOL also hit a new high into the close yesterday, trading at 6.43 at the time of our alert, and going on to touch 7.17, increasing our possibility for intraday gains up to 57% (From its low of 4.55) With all the momentum in solar stocks recently, we want to keep an eye on the sector as a whole. Here are a handful of related stocks to watch in the field: ASTI, CSIQ, HSOL, FSLR, SCTY, JKS, LDK.


Extended Watchlist:
CLWR, FNMA, FMMC, SDBT

Blue Horseshoe Stocks: Midday Updates

Apple, Inc. AAPL Options
We sincerely hope folks have been following our coverage of Apple Options. More specifically, the $440 Calls we’ve been looking at: They traded for as little as 2.57 today before going on to hit a high of 8.90, for a possible intraday gain of up to 246%

The $435 Calls also yielded chances to profit big, trading from 4.15 to a subsequent high of almost 12.00.

If Apple can break past $445, we will be looking to the $445 and $450 Calls to continue reaping these kinds of rewards.


Yamana Gold Inc. AUY Options
As we suspected it might, AUY has begun to rebound this morning as Gold Prices are doing the same. In addition to the stock itself looking attractive from this vantage, we are looking at the $11.00 AUY Calls, which have been increasing in value as the AUY attempts to break above eleven dollars, which it did for a brief time this morning.


Real Goods Solar, Inc. RSOL
RSOL came off of this morning’s extended watchlist to make a run from 4.55 to 6.43, gaining as much as 41% intraday. We offer congratulations to anyone who was able to take advantage of this rapid gainer.


Evermedia Group, Inc. EVRM
EVRM dipped to Friday’s low of .0012 before touching a high of .0016, for a 33% move.


 

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