Blue Horseshoe Stocks: APHA, MDCA & More

Aphria, Inc. APHA

Yesterday morning in our premarket report, we said that the unusually high short interest in APHA was one of the factors playing into our decision to designate it as a bottom-watch play. The rebound we were looking for came instantaneously for us with APHA heating up, and the short squeeze was on.

From a low of 3.75, the stock cruised on up to a high of 5.59 for a daily burst amounting to 49% on considerable volume. We’ll be looking for APHA to continue to make up some of the ground it has lost over the past month.



MDC Partners, Inc. MDCA

Another stock we included as a bottom play yesterday, MDCA also experienced a solid performance on the day. It traded from a low of 2.57 on up to 3.29, for a moderate but respectable 28% gain.

It also factored in as the NASDAQ’s fourth largest gainer of the session. The run came to an end right around an area of previous resistance, so we’ll look for it to break that top in the sessions ahead.



Fresh Options Ideas

Cronos Group Inc. CRON Weekly $13-15 Calls* – As we were just mentioning on Tuesday, we first tagged CRON back on Halloween, at which time the stock was trading at a low of 7.10. This morning in the premarket the stock has attained an impressive new high of 14.58, marking a five week run of 105% The above mentioned calls are how we’re going to attempt to take advantage of today’s new movement on the chart.

Lululemon Athletica, Inc. LULU Weekly $130-133 Calls*

SDPR S&P 500 ETF (SPY) Weekly $268-270 Calls*

*Caution: NEVER trade options contracts with a weekly expiration on a Friday unless you are an expert level trader with disposable funds!


Extended Watchlist:
SGSI, DNR, NOG, RIG, OMED, WTI, WLL, CRC, CASI, KTOS

Blue Horseshoe Stocks: DG Recap & More

Dollar General Corp. DG

We selected a wide range of puts in the DG chain on Tuesday morning, the DG Weekly $109-103 Puts following the company’s earnings release, wherein it lowered its outlook for the year. Despite a sales beat, shares slid considerably. With the help of an overall market downtrend in which the Dow took an 800 point hit, every set of contracts we selected made multi-bag gains.

$109 Puts – Range: 2.20-6.80 - Max Gain: 209%
$108 Puts – Range: 1.76-5.80 – Max Gain: 230%
$107 Puts – Range: 1.25-4.40 - Max Gain: 252%
$106 Puts – Range: .88-4.18 - Max Gain: 375%
$105 Puts – Range: .55-3.30 – Max Gain: 500%
$104 Puts – Range: .40-2.53 - Max Gain: 532%
$103 Puts – Range: .30-1.90 – Max Gain: 533%
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Fresh Idea:
MIK Weekly $15 & 17.50 Calls


Aphria, Inc. APHA

We’ve had an eye on Aphria, and indeed the whole Canadian cannabis market, for years.  Having previously been traded under the symbol APHQF on the OTC Markets, the Canadian cannabis company now trades on the NYSE and bills itself as a drug manufacturer in the healthcare industry.

As a result of allegations against the company, the stock has taken a severe beating in recent sessions. We’re going to begin to observe more closely as a potential bottom bounce play in the days and weeks ahead, as it has reached the point of being heavily oversold with a huge short interest. We’ll want to be hanging around when the shorts start to get squeezed.


Extended Watchlist:
SGSI, PSTG, TVIX, OZM, AAC, WKHS, XSPA, DCIX, MDCA