CPST | Blue Horseshoe Stocks

Blue Horseshoe Stocks: Kicking Off a New Trading Week

Ocean Rig UDW Inc. ORIG

We’ve had ORIG on bottom-watch for just under a month now, as the stock was undergoing a consolidation that appeared unsustainable. It seemed just a matter of time before it began to rebound, so we were monitoring it for a signal and got one in a big way on Friday.

ORIG came off its newly-registered annual low of .12 and traded up as high as .237, a 98% rise which occurred on ten times the monthly average volume. More importantly, the stock managed to crack through its 50DMA at .19, and held above that mark with a closing price of .20.

We’re going to want to continue to track ORIG, looking for the registering of higher lows off of its recent bottom. The RSI is also screaming toward the power zone, so we’ll hope to see ORIG string together a multi-day run.

Camber Energy, Inc. CEI

Speaking of stocks that are gaining strength, CEI has been in a pretty convincing ascending wedge pattern recently, routinely recording higher highs and higher lows off of its annual lows established late June.

We’ve pointed out on the chart below where the next key areas of resistance are, so we’ll want to track CEI to see if it can maintain its current trajectory and make a run at those areas on the chart.

Extended Watchlist:
TEUM, ACRX, MDGS, NPHC, MTBC, CPST, HEAR

Blue Horseshoe Stocks: BAC Options Recap & More

Bank of America Corp. BAC – Fresh Options Idea

We went bullish on BAC yesterday, confident that a rebound after Brexit-related losses could propel a set of options contracts to some sizable intraday gains. We were right on in our assessment, and after both an early morning rip, followed by a pullback and run-up into the close, were presented with multiple quick-strike opportunities.

Each of the two sets of calls we signaled, the BAC Weekly $12.50 and $13 Calls, ultimately provided us with two solid chances each:

$12.50 Calls – 1st Run: .22-.32 (+45%) – 2nd Run: .20-.37 (+85%)
$13 Calls – 1st Run: .08-11 (+37%) – 2nd Run: .05-.12 (+140%)

BAC is gapping up once again [currently trading in the 12.90-range] in the premarket, so it would appear our observed contracts are in line for a chance at another productive session. To reiterate our statement from yesterday’s report, if BAC looks as if it will breach the 13.50-mark, we’ll be looking to roll up our strike price to that level.

Petroleo Brasiliero S.A. (Petrobras) PBR – Options Recap

We recently signaled some longer-term calls in the PBR options chain, and just wanted to take an opportunity to update our readers on the potential gains that have been made possible there.

This past Friday, we signaled the PBR 07/15 $6.50 and $7 Calls and have been pleased with the subsequent activity. Monday’s dip provided an excellent buy opportunity as the $6.50’s traded as low as .30 and the $7’s traded as low as .15. Yesterday, we observed the $6.50’s close at .50, and the $7’s close at .27. That worked out to intraweek gain opportunities of 66% and 80%, respectively.

We’ll want to keep these on our radar, with two weeks yet remaining until their expiration date.

Fresh Options Ideas:

We’re already options-heavy this morning, so we figured why not formulate a couple more ideas to add to our pool of interests:

The Markets are gapping up big again today, and if today’s activity is at all like yesterday’s dip-and-rip scenario, we will want to pay close attention to the SPY Weekly $204-206 Calls. We’ll also be tracking the NKE Weekly $52-54 Calls on the heels of Nike’s post-market earnings beat yesterday.

Extended Watchlist:
USLV, TEF, ORIG, WTW, CPST, WATT

Blue Horseshoe Stocks: NQ Review & More

NQ Mobile, Inc. NQ

Our coverage of NQ stretches all the way back to the Fall of 2013 when the stock made a huge run, and we tracked it to a similar albeit smaller-scale spike in October, so we are quite familiar with this play. We have good reason to re-assess NQ this morning in the wake of an interesting PR, coupled with a good positioning of the chart.

In terms of the NQ chart, there a couple of finer points that we’ll point out on the following snapshot:

This morning’s PR relates to a big open market stock repurchase by management which seems to be fueling NQ in the premarket. >>> VIEW PR

Cannabis Coverage:

A few of the marijuana-related stocks we were mentioning yesterday morning managed to put up some solid numbers over the course of the day.

CBIS traded in a range from .068-.08 (+17%) on roughly 4X its monthly average volume.

MCIG did slightly better as recorded a 19% move from .15 to .178, trading more than twice its average volume.

EAPH also had a heavy volume day to the tune of roughly 3X its average, and made a healthy jump of 21% as it traded from its open at .024 to a high of .029.

As medical and recreational marijuana acceptance continues to spread, we’ll need to keep a close eye on these and many other cannabis plays, as we tend to believe that growth in this arena will be more substantial in 2015 than any previous year.

A few other pot plays to watch this week: WDHR, NRTI, MDCN, LATF, VPOR

Extended Watchlist:
CYTR, NERV, FRO, CPST, DARA, MNK, SNSS, RNN