Blue Horseshoe Stocks: SPY Puts & More

SPDR S&P500 ETF (SPY) – Options Idea

We came up really big with some SPY options ideas just prior to the New Year break, and will look to continue that pattern today. The markets look to be gearing toward another slumping session, so we’re inclined to signal a range of of bearish ideas to correspond with the fund’s current activity.

We’re going to select the SPY 01/02 $248-245 Puts* for observation today, with the possibility of some considerable gain opportunities that would come our way with a bearish correction to last week’s bullish push.

Please note that these expire at the end of the day, and should thus be treated as Weekly options on a Friday. As we always mention in these instances: *Please do not attempt to trade options on the day they expire unless you’re a seasoned veteran trader with money to burn. While the potential rewards are great from this type of trading, the risk is equally grave.


Western Asset Mortgage Capital Corp.  WMC

We want to put WMC on watch as a Form-4 bottom play, after noticing that the CFO picked up a multi-million dollar block of shares toward the end of last week, just as the stock has been coming down to new 52-week lows.

We will put it on our radar and be looking for it to establish itself as a recovery play as we kick off this new trading year.


Extended Watchlist:
GNCA, EBR, AKER, WMC, PLUG, NDRA, FCEL, CPST, CCCL

Blue Horseshoe Stocks: HSY Update & More

The Hershey Co. HSY

Despite the miss on Q3 earnings, we were confident enough in HSY’s setup to submit an idea for its options chain in yesterday morning’s report, and those ideas returned immediate opportunities for single-session profits.

We’re used to bucking the trend when we see a good enough chance, and this was a perfect example. Even as the market itself logged another day of losses, Hershey performed just as we’d hoped. Our targets were the HSY Weekly $102-104 Calls, and they all returned sizable gains on the day:

$102 Calls – Range: 2.79-5.60 - Max Gain: 101%
$103 Calls – Range: 2.25-4.47 – Max Gain: 99%
.$104 Calls – Range: 1.40-3.70 - Max Gain: 164%

We’ll continue to monitor these plays, but as it stands, these were some really good ideas to kick off the trading week amid some touchy conditions overall.
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Fresh Ideas:
Under Armour Inc. UAA $19-20 Calls
Take-Two Interactive Software, Inc. TTWO $122-125 Calls


Extended Watchlist: 
HZO, FAMI, EGO, CCCL, CASI, YECO,