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: TSLA, GOOS

Tesla, Inc. TSLA
-
When we left off with TSLA on Wednesday after seeing double bag moves in the calls we had tagged the previous day, we stated that we had “reason to believe that we may see some further opportunities in these ideas before the week is out.”.
Those calls were the TSLA Weekly 337.50-347.50 Calls and our assumption that they would provide another wave of gain opportunities proved to be completely accurate. We did in fact get a bigger round of gains which we’ve listed below. These ranges represent a two-day swing from Wednesday’s lows to yesterday’s highs:

$337.50 Calls – Range: 7.50-21.20 – Max Gain: 183%
$340 Calls – Range: 6.07-18.70 – Max Gain: 208%
$342.50 Calls – Range: 4.90-15.98 – Max Gain: 226%
$345 Calls – Range: 4.00-13.78 – Max Gain: 245%
$347.50 Calls – Range: 3.20-11.48 – Max Gain: 259%


Canada Goose Holdings Inc GOOS – Fresh Idea

Despite already being at its annual highs, GOOS is running like scalded dog this morning in the wake of its quarterly earnings report.

We’ve always got our eyes on the earnings calendar to look out for opportunities such as this, to take quick advantage of a rapid rise in volatility. We’re going to slate the GOOS Weekly $50-60 Calls* for observation, which could provide us with a few chances for gains to close out the week.

*Never trade weekly options on a Friday unless you are an expert trader with disposable funds!


Extended Watchlist:
BAK, TXMD, MTNB, CPST

Blue Horseshoe Stocks: DAL, CPST Recaps & More

Delta Airlines, Inc. DAL

We picked up on Delta’s premarket earnings beat yesterday, and took the opportunity to formulate a set of options ideas to correspond with the activity, and it’s a good thing we did.

We highlighted and began tracking the DAL 04/13 51.50-53 Calls, and unsurprisingly, every single contract within our designated range made solid moves on the day.

$51.50 Calls – Range: .92-2.13  – Max Gain: 132%
$52 Calls – Range: .66-1.70 – Max Gain: 158%
$52.50 Calls – Range: .41-1.25 – Max Gain: 205%
$53 Calls – Range: .15-.68 – Max Gain: 353%

Not only did we already bear witness to these excellent gain opportunities, but it looks as if these figures might be extended even further today as we close out another trading week, so we’ll really want to continue to keep an eye peeled. We’ll also roll up to include the $53.50 Calls on our watchlist.

_____

Fresh Options Idea:
SPDR S&P 500 (SPY) $266.50-268 Calls


Capstone Turbine Corp. CPST

We were just commenting the other morning on how so many of our stock selections so far in 2018 have gone on to mount very steady bull runs, and CPST is another shining example of just that.

We initially flagged the stock for observation a month ago, on March 12th, and the stock has been in a continual uptrend since then, so we wanted to take this chance to update our readers on its progress. From our observed low of .934, CPST has rocketed up to a new high of 1.85, marking a one month move of 98%


Extended Watchlist:
CCIH, GFI, NETE, PXLW, AMPE,

Blue Horseshoe Stocks: CPST Recap & More

SPDR S&P 500 ETF (SPY) – Recap

We were looking to take advantage of the rebounding markets yesterday morning with some SPY calls, and it turned out to be a solid idea for the day.

We told readers to look out for a classic dip-and-rip scenario, which did ultimately come to fruition. We designated the SPY Weekly $264-266 Calls as our targets and saw notable intraday moves out of each and every one.

$264 Calls – Range: 1.83-3.09  – Max Gain: 69%
$264.50 Calls – Range: 1.62-2.72 – Max Gain: 68%
$265 Calls – Range: 1.28-2.37 – Max Gain: 85%
$265.50 Calls – Range: 1.05-2.00 – Max Gain: 90%
$266 Calls – Range: .83-1.70 – Max Gain: 105%
__________

Fresh Options Idea:
Pricesmart, Inc. PSMT 04/20 $80 & $85 Calls


Capstone Turbine Corp. CPST

We’d like to wrap things up this week by coming back to CPST to highlight the excellent performance of the stock since our alert on the morning of March 12th.

In the three weeks since then, CPST has been on a near-continual run up the chart, even as the markets ran into some trouble earlier this week. From its low of .934 subsequent to our alert, to yesterday’s high of 1.53, the stock has produced a move of 64% Volume also picked up drastically yesterday, leaving us anxious to see where the current surge of momentum will take CPST.


Extended Watchlist:
CRSP, SPI, OPTT, RIGL

Blue Horseshoe Stocks: MULE is Kicking & More

MuleSoft, Inc. MULE

We try to include mentions of all sorts of stocks from nano-caps all the way up to the big boards, and there can be no doubt we’ve found success with plays across the entire spectrum.  Generally, when we catch a stock for a large gain over a short time period, it trades for pennies a share or less. However MULE is yet another example of a higher priced stock that we recently put on our radar, making a series of big jumps in just over a month.

When we initially tagged this play back on February 16th, it was trading as low as 28.51. After a very bullish month was followed up by another big spike this week, MULE has kicked its way all the way up to 42.40, an impressive increase of 49%

The move was catalyzed by yesterday’s announcement that the company would be acquired in full by Salesforce. Generally you don’t get a sustained push from a buyout, so we wouldn’t be surprised if the stock didn’t go much higher, but we’ll keep an eye peeled just in case.


Aytu BioScience, Inc. AYTU

We’re going to place AYTU on watch this morning as a potential bottom bounce play. The stock produced abnormally high volume yesterday along with a marginal spike in PPS.

As you can see on the chart below, AYTU saw a precipitous decline in February, and has been oversold all month long, yet still maintaining support in the low to mid .40′s. Indicators suggest the possibility of a recovery on the horizon, so we”ll go ahead and monitor the activity here in the days ahead.


Fresh Options Idea:

General Mills Inc. GIS – General Mills has been in trouble on the chart for quite some time, and despite it already being at 3-year lows, the stock is continuing to get crushed on the heels of a disappointing earnings report. Accordingly, we’re going to be tracking the GIS 04/20 $50-45 Puts.


Extended Watchlist:
AKAO, OHGI, CPST, PTI, CATB, TLGT, TEUM