Blue Horseshoe Stocks: Fresh Options Ideas

Fresh Options Ideas

We’re going to start off the new trading week by identifying a couple of options ideas we’re seeing based on the chart setups of Under Armour Inc. (UAA) and CSX Corp (CSX).

In both cases, the stocks have been on a bit of a backslide, but went on to record bullish sessions on Friday. We’re going to look for confirmed reversals on both of these, and be ready with some options ideas if they can establish more sustained rebounds. On each chart, there are gaps to the upside, which is another thing we look for.

For Under Armour, which is giving off a strong multiple-bottom signal, we’re going to track the UAA 09/01 $17-19 Calls, and for CSX Railroads, we’ll want to look after the CSX 09/01 $51-53 Calls.


ImmunoGen Inc. IMGN

We also want to keep IMGN on our radars as we kick things off this week. We signaled it in Friday’s premarket report and it had a modest yet solid session on the heels of an earnings beat. We saw a low of 6.29, and this morning in early trading the stock has reached a high of 7.41.  While that’s only an 18% rise at the moment, we’ll want to keep an eye peeled for another bullish session.


Extended Watchlist:
ACRX, CDRBQ, DVAX, NVIV, MYO, XXII, NXTD, CYTR,MNGG

Blue Horseshoe Stocks: ACRX Recap & More

AcelRx Pharmaceuticals, Inc. ACRX

We want to circle back around to ACRX this morning to give an update on its recent performance following our most recent tag of the stock on Monday of last week. We observed ACRX shares changing hands for as little as 2.80 that day, and the stock has been on a pretty nice run since then.

ACRX logged a solid session yesterday which allowed it to reach a new high of 3.65, marking an increase of 30% in a span of one week. More importantly, the stock closed at its new high, on heightened volume and is gapping up this morning, so we’ll definitely want to be on the lookout for further activity on this play, which is now trading at its highest PPS since October.


Post-Earnings Options Ideas

We usually have pretty good fortune when using the heightened activity that generally follows an earnings beat to find solid short term options ideas.

Today, Caterpillar and McDonald’s are the two big names making waves in the premarket, so we’ve formulated a range of interesting contracts in each chain to track as we head into midweek.

For Caterpillar, we’ll be looking at the CAT Weekly $111-114 Calls, and for McDonald’s, the MCD Weekly $152.50-155 Calls for potential quick-strike trades.



AK Steel Holding Corp. AKS

We want to put AKS on a longer-term watch after the company’s own solid beat on expectations for its Q2 earnings, as well as a recent upgrade from ‘Neutral’ to ‘Buy’ by Longbow Finance.

The potential for big tariffs on international steel being imposed in coming weeks is also present, and has been adding fuel to the furnace, so to speak, for steel stocks. A confirmation of those tariffs would certainly provide a boost that could send AKS higher.


Extended Watchlist:
GNCA, BKS, GEVO, TNTR, TEUM, DCIX,

Blue Horseshoe Stocks: Kicking Off a New Trading Week

Ocean Rig UDW Inc. ORIG

We’ve had ORIG on bottom-watch for just under a month now, as the stock was undergoing a consolidation that appeared unsustainable. It seemed just a matter of time before it began to rebound, so we were monitoring it for a signal and got one in a big way on Friday.

ORIG came off its newly-registered annual low of .12 and traded up as high as .237, a 98% rise which occurred on ten times the monthly average volume. More importantly, the stock managed to crack through its 50DMA at .19, and held above that mark with a closing price of .20.

We’re going to want to continue to track ORIG, looking for the registering of higher lows off of its recent bottom. The RSI is also screaming toward the power zone, so we’ll hope to see ORIG string together a multi-day run.


Camber Energy, Inc. CEI

Speaking of stocks that are gaining strength, CEI has been in a pretty convincing ascending wedge pattern recently, routinely recording higher highs and higher lows off of its annual lows established late June.

We’ve pointed out on the chart below where the next key areas of resistance are, so we’ll want to track CEI to see if it can maintain its current trajectory and make a run at those areas on the chart.


Extended Watchlist:
TEUM, ACRX, MDGS, NPHC, MTBC, CPST, HEAR

Blue Horseshoe Stocks: ITEK Recap, Options Ideas & More

Inotek Pharmaceutical Corp. ITEK

Our report for yesterday brought a couple of nice opportunities, with ITEK standing out as the most impressive. We caught this play on our routine morning scan, after noticing some abnormally elevated premarket activity. The company had released some information regarding its glaucoma treatment exiting Phase II studies and laying a strategic path for Phase III, and needless to say, it was very well-received.

This wasn’t a blink-and-you’ll-miss-it sort of move either, with just a small move up to start the session, ITEK traded sideways for most of the morning. Just prior to lunchtime is when we started to see the beginnings of an epic intraday run, especially for a stock in this price range.

From a low of  7.66, the stock exploded to reach a daily (and new annual) high of 16.75, standing as a single-session surge of 119%  The overall move as of this morning’s premarket high of 18.20 registers as an overnight increase of 138%  Cheers go out to any of our readers who caught our alert!

Inotek Pharmaceuticals Announces Positive End-of-Phase 2 Meeting with FDA and Phase 3 Development Strategy for Trabodenoson, a Novel Treatment for Glaucoma (Thu, Jul 23)


WindStream Technologies, Inc. WSTI

It was Tuesday’s Letter to Shareholders that caught our eye in the premarket news feed, causing us to raise a flag on WSTI that morning.

We’ve covered it every day since, and have been rewarded with incremental gains throughout, with the stock recording higher highs and higher lows each session. Yesterday, we witnessed an intraday run from .0172-.0244, which yielded the chance at gains of up to 42% on the day.

From our observed low on Tuesday (the 52-week low of .0085) we’ve now seen an overall jump in WSTI amounting to 187% in just three session’s time. Refer to the annotated chart below to evaluate WSTI’s chances of making further advances from this juncture.


Friday Options Ideas

If you recall last Friday, we came up huge with an alert on Weekly GOOG Calls.  We mentioned how time-decay at this point in the week begins to evaporate premiums in contracts with a weekly expiration, and generates a high-octane volatile environment where big gains are often there for the taking for those who can assume a higher-than-average risk.  A 694% intraday run from one of the sets of contracts we highlighted in that report was there to prove our point.

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We’re going to venture a similar set of ideas this morning for Weekly AMZN Calls in the $575-595 range. The stock is gapping up hard this morning to the tune of 20%, thus we will have our eyes peeled for a classic dip-and-rip scenario.

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We’re also going to put a marker flag on Weekly FB Calls from $96-50-97.50. The stock is rebounding off of a pullback over the past couple of days, after performing extremely well for the majority of this month.


Extended Watchlist:
AMDA, ACRX, CALA, ICLD, CRGP(news), HERO(52-wk lows)

Blue Horseshoe Stocks: ACRX, DSCO & More

Tesla Motors, Inc. TSLA – Options

Yesterday, those of our readers following our recent coverage of TSLA were once again presented with opportunities coming out of the 05/22 $230-240 Calls that we’ve been monitoring since Friday. TSLA registered a higher high and a higher low for the fifth consecutive session, topping out at 248.30. As a result, the total possible gains on our initial calls were pushed even further into the green, so we wanted to provide an update on those figures:

$230 Calls  – Friday’s Low: 6.85 – Yesterday’s High: 17.95 – Max Gain: 162%

$232.50 Calls  – Friday’s Low: 5.32 – Yesterday’s High: 16.90 – Max Gain: 217%

$235 Calls  – Friday’s Low: 5.96 – Yesterday’s High: 13.95 – Max Gain: 134%

$237.50 Calls  – Friday’s Low: 3.16 – Yesterday’s High: 12.00  – Max Gain: 280%

$240 Calls  – Friday’s Low: 3.84 – Yesterday’s High: 10.50 – Max Gain: 173%

These moves are a perfect example of what draws us to options trading; with just a 6% increase in TSLA stock, we’ve witnessed huge gains across the board in the options chain. These contracts don’t expire until next Friday, so we’ll keep our fingers on TSLA’s pulse until that time.


AcelRx Pharmaceuticals, Inc. ACRX

Popping up on our scanner this morning is a play that has both an interesting chart as well as a blockbuster PR out today that is leading to a gap-up in premarket trading (3.30-3.80′s).

We’re catching the stock as it comes up off of a relative bottom, and as we point out on the snapshot below, there are several attractive features of the current ACRX chart.

Couple that with this morning’s revelation of a contract the company has struck with the US Dept. of Defense, and ACRX becomes instantly worthy of our attention as the week draws to a close.


Discovery Laboratories, Inc. DSCO

Speaking of pharma stocks with fresh news, DCSO is also cropping up on our scanner this morning. Like the aforementioned play, this morning/s PR is resulting in a gap-up, and we’ll want to have our eyes peeled for potential advantageous activity on the chart once the session commences.

According to the release, Phase II testing of its AEROSURF® product has yielded “encouraging safety and physiological data suggest that aerosolized KL4 surfactant can be delivered to the lung of premature infants with respiratory distress syndrome”


Extended Watchlist:
PTBI, CYRN, BAA, CDTI, WOGI