Blue Horseshoe Stocks: Winning Options Plays & More

Options Recap

Both of our options ideas from yesterday’s morning report ended up providing us with a chance at sizable single-session gains.

Canadian Solar, Inc. CSIQ

We caught CSIQ in the unique position of having just registered a new 52-week low in the previous session, and having its earnings beat expectations yesterday, so jumping on CSIQ Weekly $16.50-18 Calls ended up being a sound strategy right from the outset. The impressive intraday moves were as follows:

$16.50 Calls – Trading Range: 1.20-1.76 – Max Gain: 47%
$17 Calls – Trading Range: .87-1.50 – Max Gain: 72%
$17.50 Calls– Trading Range: .30-.97 – Max Gain: 223%
$18 Calls – Trading Range: .27-.82 – Max Gain: 204%

Macy’s Inc. M

We went bearish on Macy’s yesterday, partly due to the overall downtrend the stock has seen in recent weeks, and as a reaction to yesterday morning’s disappointing earnings call. In this case our target range was the M Weekly $36-34 Puts and hefty gains were available across the board, including a big triple-bagger in the $34′s.

$36 Puts – Trading Range: 1.83-4.37  – Max Gain: 139%
$35.50 Puts – Trading Range: 1.40-3.79 – Max Gain: 171%
$35 Puts– Trading Range: 1.00-3.60 – Max Gain: 260%
$34.50 Puts – Trading Range: .83-2.88 – Max Gain: 247%
$34 Puts – Trading Range: .50-2.58 – Max Gain: 347%


Fresh Ideas:  To throw some other options ideas into the mix this morning, we’re going to be adding Monsanto Co. MON Weekly $102-106 Calls and Jack in the Box, Inc. JACK 05/20 $70 and $75 Calls to our track-list.

Cerebain Biotech Corp. CBBT

We put CBBT on our radars last Tuesday after noticing some increased activity in the stock. Since our mention, subsequent to which we observed a low .53, we’ve seen a good bit of progress leading up to yesterday’s high of 1.25. That’s an overall move of 136%

The high came just prior to the closing bell, at which CBBT held a PPS of 1.20 so we’ll continue to monitor the situation carefully. We’ve had success recently with low-float, low-volume plays, and CBBT fits that bill to a tee.

Extended Watchlist:

Blue Horseshoe Stocks: HZNP Options Update & More

Horizon Pharma plc  HZNP

Our first idea of the week in yesterday’s premarket report, which was to track the HZNP Weekly $14 and 15 Calls, ended up paying instant dividends. HZNP was coming off of its earnings call as well as highlighting a new 5M share repurchase program.

Both of our targeted sets of contracts experienced significant intraday swing action which traders could have utilized for solid single-session gains. The $14 Calls ran impressively from a low of .88 to a subsequent high of 2.15, for a 144% rip. The $15′s put up a pleasing performance of similar magnitude, trading in a range from .60-1.33, for total possible profits of up to 122%

We identified 16.15 as an indicating point, the breaching of which would signal us to roll up our strike price to $16. That still remains true as we continue along through the week.

Aperture Health, Inc. APRE – Update

We want to provide an update this morning on the recent progress of APRE, which our regular readers will recollect was a point of focus for us beginning a couple of weeks ago. We’ve tracked it over several swings, commenting on the stock’s ability to make volatile moves to the upside. It continues to demonstrate this ability over recent sessions, wherein we’ve observed quite a rush of momentum.

From last Wednesday’s bounce-point of .0188, we’ve now seen a swing of 165% as of yesterday’s new high of .0499 and the stock recorded its highest volume since November. Presently, indicators on the chart seem to be ripe and ready for the possibility of even higher highs. The next key areas of resistance following a nickel are sitting at .08 and .115.

You may also view the highlights of the chart on the following video presentation:

Extended Watchlist:

Blue Horseshoe Stocks: ODP Update, FRO & More

Frontline, Ltd. FRO

The last time we mentioned FRO was early this month, at which time the stock was trading at a low of 1.33. It has been ramping its way up over the past few sessions, making higher highs and higher lows, and we wanted to flag it once again this morning as it is trading up significantly in the premarket.

This morning’s high of 2.15 represents an increase of 61% over the 1.33-low that we observed as recently as Monday. With the heavy early-morning momentum we’re seeing we’ll want to follow along with this play closely today and into next week.

Talisman Energy, Inc. TLM

We’ll keep an eye on TLM today as well based on some heavy premarket activity and the fact that the stock is coming up off of its 52-week lows. We’ve noticed a break on the chart due to a gapdown from around 5.60 to 4.80, and with the stock currently trading in the 4.40′s, we should be on the lookout for it to possibly make a run at filling that gap.

ChemoCentryx, Inc. CCXI

Also popping up on our morning scan is CCXI, which is currently trading feverishly in the premarket on the heels of a PR early this morning regarding positive top line results on one of its products currently in testing.

With the stock up over 100% in early trading, we’re going to be on the lookout for massive profit-taking to potentially drive the price back down where it may set us up to take advantage of a dip-and-rip opportunity.

MOUNTAIN VIEW, Calif., Dec. 12, 2014 (GLOBE NEWSWIRE) — ChemoCentryx, Inc., (CCXI), a clinical-stage biopharmaceutical company focused on autoimmune diseases, inflammatory disorders and cancer, today announced positive top-line 52-week data from its Phase II clinical trial in diabetic nephropathy with CCX140, an inhibitor of the chemokine receptor known as CCR2. >> FULL PR

Office Depot, Inc. ODP

ODP was a good call for yesterday’s session, as it made a solid 8% move on news that a large activist investor took up a significant position in Office Depot while raising its existing stake in Staple stock to 10% total ownership. It is fueling speculation that there could be pressure for a merger between the two, so this is definitely a story we’ll continuously track going forward.

Extended Watchlist:

TSLA, PLUG, ETRM, OMED & Extended Watchlist

Tesla Motors, Inc. TSLA – Options
Back on November 29th, we were noticing that conditions on the TSLA chart had been exhibiting signs of a coming uptrend, and as a result, we presented a few options trading ideas that we felt had a reasonable chance of success. In particular, the 12/21 $120 Calls, and the 12/27 $130 Calls. We were rewarded for our interest, as the stock did indeed find its legs and begin to run following that report.

Since then we’ve seen some major moves out of those contracts, as the $120 Calls ended up trading from a low of 8.40, all the way up to yesterday’s closing price of 25.46, a monstrous 203% gain. The $130 Calls saw their low at 5.03, and ended up closing at 17.07. That was good for an even larger 239% rip.

Chartwise, it appears as if resistance is sitting at $145.65, $151, and the 50DMA of $159.45, and there is a gap on the chart to fill from $160-176, so a push past those key resistance points could lead to more pronounced increases. We would continue to take advantage of the added gains on these contracts, and in the event of a sustained uptrend, would have to consider rolling our strike price up to higher level that we believe would still be pushed into the money.

Plug Power, Inc. PLUG

PLUG has been an old favorite of ours from last March when we caught it on our scanners coming off its 52-wk lows (.1155) and we’ve mentioned it on multiple occasions since that time. We’ve followed this play all the way up to current levels, which as a result of recent favorable reports on the company’s finances, have reached all the way up to this morning’s pre-market high of 1.41. That represents an increase of 1121% off of lows following our initial alert.

We’ll be continuing to monitor PLUG closely, and will certainly want to take part in today’s conference call/webcast in which the CEO will address the reasoning behind his statement that the company is on pace for a “blowout quarter.”, as well as other issues.

LATHAM, N.Y., Dec 04, 2013 (GLOBE NEWSWIRE via COMTEX) — Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, will today host a conference call and webcast during which CEO Andy Marsh will provide a business update for Plug Power and the Company’s expectations for the remainder of 2013 and for 2014.Since the October 8 business update call, the Company has seen an additional 17.8M USD in bookings. Plug Power is currently in negotiations with several large customers on sales agreements to deploy turn-key GenDrive solutions at multiple distribution centers. The Company believes this will significantly impact the fourth quarter bookings, as well as provide a recurring revenue stream from product, service and hydrogen contracts. Plug Power expects orders to range between 30M and 40M USD for the fourth quarter of 2013.

Plug Power has scheduled its conference call and webcast today at 10:30 am ET to review the Company’s business updates. Participants are encouraged to join the webcast to access the accompanying slide show presentation. The webcast can be accessed by going directly to the Plug Power Web site ( and selecting the webcast link on the home page. You can also call-in by dialing 877.407.8291. Andy Marsh will be joined by COO, Keith Schmid, and Vice President of Sales, Erik Hansen, to answer questions.

EnteroMedics, Inc. ETRM

ETRM was part of yesterday’s Extended Watchlist, and the stock went on to put up quite a performance. After touching a low of 1.48 shortly before 10:30am, ETRM would spend the rest of the day pressing upward to its high of day and closing price at 2.24. This marks an impressive intraday run of 51% on nearly 20x its 3mo. average volume.

We’ll certainly want to keep an eye on a stock with current momentum of this magnitude.

OncoMed Pharmaceuticals, Inc. OMED

Another winner from yesterday’s Extended Watchlist, OMED traded in a range from 22.10-31.99, which marks an intraday move of 45% Quite an impressive feat for a big-board stock in this price range.

Congrats to anyone who caught this, or any of the opportunities for significant profits afforded by the excellent calls in yesterday’s report.

Extended Watchlist:
HEM (Recently coming off 52week lows),
OCLS (FDA Approval news out this am)

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