Blue Horseshoe Stocks: BABA Review & More

Alibaba Group Holding Ltd BABA – Options Review

We saw the contracts we highlighted yesterday morning in the BABA chain make solid multi-bag moves. The BABA Weekly $162.50-170 Calls were our targets, and each one took off for the following moves starting at around 10AM.

$244.50 Calls – Range: 2.58-5.65 – Max Gain: 119%
$245 Calls – Range: 1.26-3.50 – Max Gain: 171%
$245.50 Calls – Range: .52-1.79 – Max Gain: 244%
$246 Calls – Range: .18-.74 – Max Gain: 311%

We also want to continue to keep our eye on these plays to close out the week*, as further increases are a possibility. While BABA’s PPS tapered back into the close, we’re seeing yet another gap up in the premarket this morning.


Wal-Mart Stores, Inc  WMT

Despite seeing a pullback following its earnings report yesterday, WMT rebounded off of support and managed to close near its high of day and is up slightly in early trading this morning.

There may be an opportunity in the WMT Weekly $79.50 & $80 Calls* so we’ll have those on our radars as we wrap up another trading week.

*We don’t include mentions of weekly options contracts on a Friday without explicitly warning our readers every single time. Trading weekly options at the end of the week is an exceedingly risky proposition that should never be attempted by beginning or novice traders!


Extended Watchlist:
DCTH, MNGA, SPWH, CTIC, CBAY, TOPS, THC,
DEWM (Cannabis News)

Blue Horseshoe Stocks: IDXG Keeps Rolling & More

Interpace Diagnostics Group, Inc. IDXG

Yesterday morning, we were mentioning our call of IDXG from last Thursday, and subsequent run from a low of .72 to more than a dollar. It had reached a new high at 1.28 in the premarket and we said we wanted to see it register higher highs and higher lows en route to a more sustained rebound.

So far we’ve gotten just what we were looking for from IDXG, with the stock posting an intraday run of 24% from 1.17-1.54 for yesterday’s session. It pushed the overall move we’ve observed in under a week’s worth of trading into double-bag territory, having risen 114% thus far.

It was helped along by yesterday’s announcement that a large healthcare provider would be covering the company’s thyroid cancer screening tests, which is now covered for up to 250 million Americans. We’ll continue to keep a spot on our radars for IDXG, which was trading over the $2-mark as recently as May.


Alibaba Group Holding Ltd - Options Idea

Shares of BABA are streaking to new highs this morning as the company posted a solid beat on profits and revenue in its premarket earnings report.

The last time we visited an idea in the BABA chain was back on June 8th, when we signaled $140-145 Calls and saw them register single-session gains ranging from 1167-3160% so we are definitely familiar with what can happen in an ideal situation.

Today, given the fact of another similar scenario where earnings lead to a large gap up into blue skies, we’re going to be tracking contracts in the range of the BABA Weekly $162.50-170 Calls.


Extended Watchlist:
BTSC, BTCS, GAHC, IDDR, SDLP, GST, SSI

Blue Horseshoe Stocks: BABA, ABIL Recaps & More

Options Recap

Alibaba Group Holding Ltd. BABA- There was quite a to-do yesterday morning after BABA went rocketing up in the premarket on raised revenue guidance, and we jumped at the chance to signal some options ideas to correspond with the activity.

In our premarket report we highlighted the BABA Weekly $140-145 Calls  with the explicit warning that “Whenever a stock has gapped up this hard, we must be on the lookout for an early pullback into a dip-and-rip pattern” and we really couldn’t have been more spot-on with how we approached this play if we had a working crystal ball.

We don’t have that, but we do have loads of experience identifying winning options plays, and not only did the stock behave exactly as we said it would, selling off before exploding to new highs, but every single contract we highlighted went bananas as a result.  Regardless of which of our four highlighted contracts was chosen as the strike price, gains ranging from the 1100% to the 3100% range. Not bad for a day’s work!

$140 Calls – Range: .34-4.40 – Max Gain: 1167%
$141 Calls – Range: .25-3.65 – Max Gain: 1360%
$142 Calls – Range: .16-2.87 – Max Gain: 1694%
$143 Calls – Range: .12-2.41 – Max Gain: 1908%
$145 Calls – Range: .05-1.63 – Max Gain: 3160%

We’re going to look for similar chart activity today to lead to further gains in these plays, but as we always do when discussing weekly options on a Friday, we feel obligated to warn our readers that trading such contracts is for EXPERT traders only!
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Yahoo! YHOO – We were also looking at some YHOO contracts yesterday, although they didn’t have much open interest with the exception of the Weekly $55 Calls. Those ran from .10 to 1.01 for a 910% rip on the day.


Ability, Inc. ABIL

On Wednesday morning we flagged ABIL as a possible bottom-play and the subsequent activity over the ensuing two sessions has been excellent.

The first day it ran from .6298-.91, for a solid 44% rise, and yesterday, it one-upped its performancde with an intraday run from .80 to a new high of 1.69. It was good for a daily pop of 111% and a total two-session upswing over our observed low amounting to 168%


Delcath Systems, Inc. DCTH

We also want to mention DCTH this morning, a stock that had been in a continual downtrend for months on end. It just began to show life yesterday and is gapping up in premarket trading this morning, so we’ll just want to keep an eye peeled.

As we said, this stock has been ridiculously oversold for a long while, so the resulting snapback could turn out to be pretty impressive. .


Extended Watchlist:
ADHD, CAMT, GMO, OPTT, RADA

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Blue Horseshoe Stocks: Options, Updates & More

Options Ideas

Alibaba Group Holding Ltd. BABA- After raising revenue guidance by nearly 50%, there has been a mad scramble for shares of BABA in the premarket this morning with the stock shooting up over $15. Whenever we see a feeding frenzy like this, we like to set up camp with some options ideas in an attempt to take advantage of the bullish commotion.

In this case, we’re going to signal the BABA Weekly $140-145 Calls which should do pretty well if the current trajectory is any indicator. Whenever a stock has gapped up this hard, we must be on the lookout for an early pullback into a dip-and-rip pattern, which can happen in these sorts of situations.
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Yahoo! YHOO – Also gapping up in the premarket considerably is YHOO, and we’re going to keep an eye on a range of contracts here as well. We’ll have the YHOO Weekly $53-56 Calls on watch today.


Bottom-Watchlist Updates

Dragonwave, Inc. DRWI -  We had DRWI on yesterday’s bottom-bouncer watchlist and it’s looking like a really solid play so far. DRWI traded in an intraday range from .94 to 1.24 for a solid 32% move on 9X the 30-day average volume. Not too bad for our first day of observation. We’ll continue to watch DRWI for a continuation of this rebound pattern.
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Ability, Inc. ABIL- We caught ABIL gapping up slightly off of its own bottom yesterday and it made a very nice move for us. The stock traded in a range from .6298-.91, for a solid 44% pop on 20X the monthly average volume.



Side Note – Caravana Co. CVNA
- We’ll also want to keep a continued eye on CVNA, which we tagged in yesterday’s extended watchlist. It traded up from 10.50-12.83 on the day, and hit 13.03 in the premarket this morning. That’s an increase of 24% and it came on more than four times the three-month average volume.


Extended Watchlist:
NXTD, VSTM, CVM, ONCS, COOL, CASC, KIM

Blue Horseshoe Stocks: SNDX Recap, Options & More

Syndax Pharmaceuticals, Inc. SNDX

Despite the markets getting crushed yesterday we managed to find and tag in our premarket report, what would ultimately be the NASDAQ’s top gainer of the day. SNDX had been gradually coming up off a bottom in the few sessions prior, but yesterday things really kicked into gear.

It traded in a range from 10.76 to 15.335, a fantastic intraday move of 43% which is really impressive for a $10+ stock. That move inside of the first 90 minutes of the session. That was followed by a dip-and-rip pattern from 12.16 and back to 13.62; a 12% rebound into a strong close at 13.58

The stock traded 56x its 30-day average volume yesterday, and held more than half of its daily advance, so we’ll be treating this as a potential momentum play as we head into week’s end, looking out for higher highs and higher lows out of SNDX.


Fresh Options Ideas

Speaking of the markets getting crushed, it appears as if we may see a continuation of that pattern today, so we want to have a few sets of options ideas to fall back on in the event of a continued slide.

Alibaba Group Holding Ltd. BABA – BABA had been on an incredible bullish run for the better of part of 2017 thus far as you can plainly see on the chart snapshot we’ve included here. You can also see that the strength index is sharply declining after having recently been indicating the stock was extremely overbought.  We can also see the MACD pinching toward a bearish cross.

That’s why, along with an earnings miss in the premarket and the overall current of the markets as a whole, we’re looking at the BABA Weekly $120-117 Puts for potential quick-strike swing trades.


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SPDR S&P 500 ETF Trust (SPY)  – Also in the vein of our general bearish view of today’s overall conditions, we want to line up a set of SPY Puts for observation. Our regular readers know that the SPY is one of our favorite market analogs, and has been a wellspring of gains for us on the options front when we correctly gauge investor sentiment.

Today we want to put the SPY Weekly $237-235 Puts on watch, as a sustained tumultuous period for stocks would likely produce some good chances for us there.


Extended Watchlist:
P, GLYC, CYTR, ETRM, XGTI, VSLR