Blue Horseshoe Stocks: Options Review & More

Options Review

Bed Bath & Beyond, Inc. BBBY – Yesterday morning’s premarket report contained an options idea for Bed Bath & Beyond following the company’s quarterly earnings report, the BBBY Weekly $13 & $13.50 Calls, and those plays both turned in fantastic intraday performances.

Regardless of which strike point was chosen, traders could have secured multi-bag profits on the day. The $13 Calls traded up from a low of .30 to a high of 1.30, for an increase of 333%, while the $13.50′s also crushed it with a huge 431% rip from .16-.85!
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Constellation Brands Inc. STZ -Just as Constellation stock got crushed to new lows in the premarket on Wednesday, we formulated a couple of longer-term options ideas, and wanted to provide updates on the activity there as well.

We were banking on STZ reversing off of those lows and beginning a recovery, and so far, it’s going quite well. Our targets were the  the STZ 02/01 $150-157.50 Calls and the 04/18 $160-170 Calls, and all seven sets of contracts in those ranges have been good for significant gain opportunities. These remain in play, and will remain on our watchlist going forward.

02/01 $150-157.50 Calls
$150 Calls – Range: 8.80-11.50 – Max Gain: 31%
$152.50 Calls – Range: 3.80-6.70 – Max Gain: 76%
$155 Calls – Range: 2.90-8.00 – Max Gain: 176%
$157.50 Calls – Range: 3.00-6.65 – Max Gain: 122%

04/18 $160-170 Calls

$160 Calls – Range: 5.50-10.83 – Max Gain: 97%
$165 Calls – Range: 4.00-8.01 – Max Gain: 101%
$170 Calls – Range: 2.78-6.07 – Max Gain: 118%
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Fresh Ideas:
GM Weekly $36-37.50 Calls
TLRY Weekly $92.50-95 Calls  


China SXT Pharma Inc SXTC

To wrap things up we wanted to go over the call we made on Monday morning in SXTC, which at the time had registered a low of 5.684. After steadily ramping up all week, yesterday the stock reached a new high of 23.35. That worked out to an incredible four-day swing of 311%

Cheers to anyone who caught this mover in Monday morning’s premarket report. It adds to an already impressive start for us here in 2019.


Extended Watchlist:
FTK, AQMS, MGEN, NAVB, SNSS, CFRX, TEUM

Blue Horseshoe Stocks: Form-4 Bottom Play

La Jolla Pharma Co. LJPC – Form-4 Bottom Play

One of the top scenarios we routinely scan for on a regular basis, is a Form-4 Bottom Play. Whenever we witness a stock trading at or near its annual lows being purchased in large amounts on the open market by its own directors, we can feel fairly certain that their confidence in a potential recovery is high.

LJPC is a fantastic example of this at the present time. We’ve just noticed more than 12M shares being purchased by a director in three separate transactions over the past few days, amounting to roughly $6.8M, or nearly five percent of LJPC’s total market cap. (>>View Transactions)

We’ll now treat this as any other bottom watch play, and monitor the stock for a recovery in coming sessions.


Kandi Technologies, Inc. KNDI

We signaled KNDI in yesterday morning’s extended watchlist, and the stock managed a solid move on the day for our first session of observation on the stock since early in the fall.

KNDI traded in a daily range from a low of 4.60 to 5.63, a modest but solid 22% intraday rise, and a good start on a more significant push. We’ll look for KNDI to test its previous resistance in the mid-$6 area going forward.


Fresh Options Ideas:
KBH 01/18 $22 & $23 Calls
BBBY Weekly $13 & $13.50 Calls

Blue Horseshoe Stocks: Multiple Winners & More

Marathon Patent Group, Inc. MARA

We initially brought MARA into the fold on Thursday morning, when we highlighted it in our premarket report as a bottom-bouncer. The stock had just made a considerable move of off its recent relative lows the session prior, and looked set to continue into a multi-day run.

That certainly came to pass, with a solid performance on Thursday leading into yet another for Friday. On Thursday we observed a low of .22 and a moderate run into the .30′s but Friday, things ramped up to another level with MARA running from .24-.48 for an even 100% move on the day and a total rise of 118% over a two-day span.

That’s certainly a heck of a bottom-bouncer call. If things were to progress in a similar fashion to kick off the new trading week, today MARA could be looking at the fifty-cent range or better.


Defense Technologies International, Corp. DTII

We tagged DTII in Friday morning’s extended watchlist, and were very pleased with the solid intraday performance yielded by the play. The stock ran from a low of .0042 to as high as .0075 on the day, marking a move of 79%

The PPS pop was accompanied by a considerable influx of volume, on the order of more than six times the monthly average of shares changing hands. The past two sessions, in terms of price action and liquidity, have blown all others of the past few months out of the water, so we’re interested in seeing whether the stock can sustain this level of activity moving forward.


AVEO Pharmaceuticals, Inc. AVEO

We also tagged AVEO on Friday morning for the first time in a couple years, and the stock promptly turned around and set a new 52-week high on the day.  While the move itself was relatively modest, running 31% from 1.05 to 1.38, it did occur on mammoth volume, just a hair shy of 22X times the monthly average volume.

It did lose having held more than half of its daily advance, and is gapping up slightly in the premarket today, so we’ll definitely keep a slot reserved for AVEO on our watchscreens as we kick things off today.


Bed Bath and Beyond, Inc. BBBY – Options Recap

We went bearish on Bed Bath & Beyond on Friday with a set of options contracts to follow in the wake of their disappointing quarterly results, and it turned out to be a fantastic idea.

Our targets were the BBBY Weekly $31.50-30.50 Puts and regardless of which strike point was chosen, sizable gains were there for the taking:

$31.50 Puts – Range: 1.07-2.07 – Max Gain: 93%
$31 Puts – Range: .64-1.58 – Max Gain: 147%
$30.50 Puts – Range: .31-1.05 – Max Gain: 239%


Adobe Systems Inc. ADBE – Options Recap

We signaled some options for the ADBE chain on Wednesday, and the stock finished the week strong, and we witnessed some nice gains there as well. We were looking at the ADBE 06/30 $147 & $148 Calls, and both ideas have worked out nicely thus far.

The $147′s traded up from .35-.62 (+77%) while the $148′s ran from .17-.35 (+106%). Granted the nature of Friday’s session for ADBE, and these contracts not expiring until the end of this week, we wouldn’t be at all surprised to see these gains extended before it’s all said and done.


Extended Watchlist:
IDXG, PTN, SDRL, SPHS, RNVAZ, ZSAN,

Blue Horseshoe Stocks: ANY Review & More

Sphere 3D Corp. ANY

We’ve often said in the past that it’s better to be early to the party than late, and ANY is a perfect example of why. We tagged this play on Wednesday after noticing some unusual activity the previous day, and things didn’t really kick off right away. We observed a low of .15 during that session.

Yesterday is when things really moved into high gear, with the stock having an excellent day, trading in a range from .1941 on up to .29 for a 49% rip, and we’ll definitely want to keep tracking the activity into today, as the premarket high has equaled yesterday’s daily high.

From the low of .15 that we saw on Wednesday, ANY’s total upswing thus far has amounted to 93% Quite a respectable two-day jump.

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Vivint Solar VSLR Recap – Speaking of solid movers, we also wanted to quickly update the total observed range we’ve seen on VSLR, which reached a new high of 5.50 yesterday. From our witnessed low of 2.75 following our report on the morning of May 18th, that comes out to a nice, round 100%


AVEO Pharmaceuticals, Inc. AVEO

We want to radar AVEO in the wake of the announcement that its advanced renal cell carcinoma treatment has been recommended for EU approval by a scientific committee of the European Medicines Agency. The stock has gapped up into Blue Skies this morning as a result, with a new 52-week high of 1.28.

Concerning the chart itself, the 50DMA is rising toward the 200DMA and it appears as if a Golden Cross is imminent.  We’ll want to see AVEO hold at or above recent resistance at .89 on any dips in order to hold our interest.


Bed Bath and Beyond, Inc. BBBY – Options Idea

We’re bearish on BBBY following the company’s post-market earning miss yesterday, which has caused a breach of trend-line support to the low side. We’ll be observing the BBBY Weekly $31.50-30.50 Puts* for possible day trade opportunities.

*We don’t include mentions of weekly options contracts on a Friday without explicitly warning our readers every time. Trading weekly options at the end of the week is a hugely risky proposition that should never be attempted unless you are an expert trader! 


Extended Watchlist:
DTII, IDRA, TROV, AKS, FALC, BDSI, MARA

Blue Horseshoe Stocks: MACK, RITT, BIGG & More


Merrimack Pharmaceuticals, Inc. MACK

We’ve got MACK, a play that has been on our watchlist before, bringing itself to the forefront today as news about a licensing agreement has the stock gapping up to the tune of 20% in the premarket. We’re going to be interested to see how it comes out of the gate this morning in response to the announcement.

Baxter International Inc. (BAX) and Merrimack Pharmaceuticals, Inc. (MACK) today jointly announced an exclusive license and collaboration agreement for the development and commercialization of MM-398 >>> GO TO PR


RiT Technologies, Inc. RITT

Another gapper, RITT is also up significantly in premarket trading this morning. The stock had a strong session yesterday, trading in a range from 1.28 – 1.97 on exceedingly heavy volume; more than ten times the monthly average, so we are looking at it for potential momentum carryover into today.

Given the nature of the yesterday’s activity, we could also be looking at a possible dip-and-rip scenario as inevitable profit-taking pares back the share price.


Big Tree Group, Inc. BIGG

BIGG was actually passed along to us awhile back by one of our subscribers. (Readers should feel encouraged to share any ideas you might have with us!) Since then we’ve had the stock on the back burner, passively following along until it was ripe for the picking. We began to see some positive movement off of the bottom yesterday, so we think now could be a good time to flag this play for more intensive monitoring.


Added Note – Options Trading Idea

GTLS was the subject of a buyout rumor yesterday, which effected some upwad movement in the stock. As a result we just want to radar the October $65 Calls, which last traded at 1.50.


Extended Watchlist:
LPCN, ICLD, BBRY, BBBY, SINO