Blue Horseshoe Stocks: More Big Options Calls

Options Review

Once again we were able to score some good quick-strike options trading opportunities with the fresh ideas included with yesterday morning’s premarket report. It continued an extremely solid run of options ideas this week.

In three separate options chains, we selected a total of 12 options contracts to monitor, and solid chances for significant intraday gains were produced by 10 of those:

The Kroger Co. KR Weekly $28-29.50 Calls
$28 Calls
– Range: .41-1.04 – Max Gain: 154%
$28.50 Calls – Range: 21-.68 – Max Gain: 224%
$29 Calls – Range: .08-.41 – Max Gain: 413%

Darden Restaurants Inc. DRI 07/20 $100-115 Calls
$100 Calls
– Range: 3.00-8.20 – Max Gain: 173%
$105 Calls – Range: .90-4.10 – Max Gain: 355%
$110 Calls – Range: .30-1.50 – Max Gain: 400%
$115 Calls – Range: .05-.45 – Max Gain: 900%

Micron Technology, Inc. MU Weekly $61-62.50 Calls
$61 Calls – Range: .22-.57 – Max Gain: 159%
$61.50 Calls – Range: .17-.37 – Max Gain: 118%
$62 Calls – Range: .10-.24 – Max Gain: 140%
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More Fresh Ideas

We had an excellent day with yesterday’s fresh trio of options ideas*, so why not formulate another three to close out what has been a fantastic trading week. 

SPDRA S&P 500 ETF (SPY) Weekly $274-275.50 Calls*

BlackBerry Ltd. BB Weekly $11-12 Calls*

CarMax, Inc. KMX Weekly $75-78 Calls*

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


Extended Watchlist:
FCEL, FTI, INPX, TS, TNTR, BPMX, CRC, OAS

Blue Horseshoe Stocks: Cannabis Commentary & More

NeoPhotonics Corp. NPTN

We’re always bargain hunting for stocks that have been recently beaten back to what appear to be unsustainably low levels, and we’re observing one heck of a double bottom setup on NPTN at the present time.

Twice now the stock has touched and rebounded off of the mid-$4 range, with the annual low coming in at 4.56. We’re going to want to place NPTN on watch in sessions to come and look for the stock to establish higher levels of support.



Valeant Pharmaceuticals International, Inc. VRX

It’s been awhile since we had a look at VRX, and as it turns out, this is another stock that looks ready to start a trend off of a recent relative low.

VRX is gapping up considerably into the $14-range this morning on the heels of a solid earnings beat. We’re going to signal a range of options contracts to watch for some possible dip-and-rip activity. This is just the type of setup we routinely look for, and we’ll be tracking the VRX Weekly $13-14 Calls for the remainder of the week.



Cannabis Commentary

It has been a slow year in general for many domestic cannabis stocks, due, at least in part, to a DOJ led by outspoken marijuana opponent Jeff Sessions. It has created an environment of uncertainty pertaining to the federal government’s likelihood of creating problems for marijuana businesses, even in states where voters have officially spoken and legalized the plant. The marijuana movement is here to stay, but at present, is dealing with this roadblock of sorts.

That doesn’t mean our interest in the sector has diminished. In fact, we’re as exuberant about the future of the cannabis industry as we ever were. North of the Border, Canadians will enact a nationwide end to prohibition just 8 months from now.

The World Anti-Doping Agency, which was formed by the International Olympic Committee to police the use of performance enhancing drugs in athletics, also recently removed Cannabidiol (CBD) from its list of banned substances, opening up a huge market for the hemp-derived product.

Here are just a few of the cannabis plays that we track on a regular basis, and will continue to do so as we head into 2018, which we feel is going to be a big year for the industry and all of its subsectors. Maybe the biggest one yet!

MJNA, TRTC, MJTK, AGTK, GRNH, HEMP, ACBFF, APHQF,  TWMJF, CBIS, XXII,


Extended Watchlist:
TXMD, EVEP, DXTR, COLL, CRC

Blue Horseshoe Stocks: Bottom-Plays, Options & More

Celadon Group, Inc. CGI

We’ve been seeing a fair bit of bottom-bouncers running across our desks this week, and CGI is the latest to grab our attention. What we’ve got here is a very enticing chart with just about everything we look for in a potential bottom play.

The stock is beginning to come off of being massively oversold, has set higher lows and higher highs for each of the last three sessions, and has a sizable gap to fill to the upside. We also have a MACD that appears as if a bullish cross could be forthcoming, so we’ll definitely want to keep an eye on CGI this week.


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Two other stocks on our bottom watchlist, California Resources Corp. and CRC Uni-Pixel, Inc. UNXL will remain there. We signaled these two just yesterday, and despite recording only marginal gains on the day, we still want to leave them a spot on our radar as well.



Valeant Pharmaceuticals, Inc. VRX – Options Idea

Speaking of bottom-bouncers, VRX recently rebounded off of new 52-week lows, and is hitting our scanners this morning.  With a pleasing Q1 earnings call which included solid boosts in profits for the quarter as well as reinforced guidance for the remainder of the year, VRX is gapping up considerably in the premarket.

We want to formulate an options idea to coincide with the increased activity and expected price action in a stock in this position. We’ve seen this sort of pattern many times before, and if things play out similarly here, the VRX Weekly $10.50-12 Calls could be in line to see considerable gains.


Extended Watchlist:
AMRS, ARLZ, CLNT, MTBC, XXII, ORRV(News)

Blue Horseshoe Stocks: Huge Options Calls & More

SPDR S&P 500 ETF (SPY) – Options Recap

If any of our readers had ever been in any doubt as to why we occasionally try to “shoot the moon” with a risky options idea containing weekly expiration contracts on a Friday, then this past Friday’s session answered their questions for good. We try to shoot the moon, because occasionally you can actually hit it! That was certainly the case with the SPY Weekly $238-50-239.50 Calls that we highlighted in Friday morning’s premarket report.

We stated our reasoning behind the idea as having noticed a “promising jobs numbers release, and what seems like it could be a bullish day for the markets as a whole.”  It really worked out exactly as we hoped, and because the SPY can be traded 15 minutes into post-market hours we got an extra boost to the monster moves we saw, which were as follows:

$238.50 Calls – Range: .33-1.41 – Max Gain: 327%
$239 Calls – Range: .07-1.00 – Max Gain: 1328%
$239.50 Calls – Range: .01-.47 – Max Gain: 4600%

As you can see, those gain opportunities ranged from really good, to ridiculously good, to full on eye-popping! Cheers to anyone who was along for the ride!


Uni-Pixel, Inc. UNXL

We’ve taken notice of what could be a prime rebound opportunity in UNXL. As you can see plainly on the chart below, the stock bottomed out at the end of last month, and has thus far been building a higher base of support in the month of May.

We’re eager to track this play to see if the trend will continue because if you’ll notice two of our favorite technical indicators on this chart, the RSI and the MACD, both are exhibiting an extremely bullish look at the moment. We’re going to place UNXL on intensive watch, because the party could just be getting started.


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Extra Note: For an added bottom-bounce possibility, we’ll also have California Resources Corp. CRC on our radar, as it just underwent a bullish reversal on Friday, and maintained more than half of its daily gains.


Extended Watchlist:
AMFE, BLDV, FCEL, AXSM, DRRX,
GST, DDR(Potential Bottom-Bouncers)

Blue Horseshoe Stocks: BP Options Review & More

BP plc (BP) – Options Review

Our fresh options idea from yesterday morning’s premarket report was was to track the BP Weekly $32-33.50 Calls for possible daytrade opportunities and we got just what we were looking for.

The strength of the company Q1 earnings report kicked the PPS up high enough to produce some solid moves out of each play in our highlighted range of contracts:

$32 Calls – Trading Range: 1.20-1.56 – Max Gain: 30%
$32.50 Calls – Trading Range:  .79-1.10 – Max Gain: 39%
$33 Calls– Trading Range:  .49-.73  – Max Gain: 49%
$33.50 Calls – Trading Range: .20-.39 – Max Gain: 95%

BP closed at its highs and traded even higher in the post-market, and we’re seeing a gap-up in the premarket this morning as well. We’ll look for a continuation of momentum into today’s session, wherein those options could be in line for further gains. In addition to watching those contracts, we may look to roll our strike price up in the event BP can surge past the $34-mark.


Sarepta Therapeutics, Inc. SRPT – Fresh Idea

SRPT caught our eye this morning as were searching for bottom-bounce candidates, as the stock fits the bill to a tee. After being beaten back to new 52-week lows this week, the stock posted a strong recovery session yesterday that has us thinking about potential options plays.

We’re going to monitor SRPT to see if it can test yesterday’s swing high of 11.50. We’re going to be tracking the activity in the SRPT Weekly $10.50 and $11 Calls.

Bonus Bottom-Watchlist:

That same search yielded a couple of other stocks trading at or near their own 52-week lows. We always like a good bounce-play and these are the types of stocks that most often produce them.

Active Power, Inc. ACPW took a pounding into heavily oversold territory yesterday after a sizable gap-down, so we’ll be watching that over the next few sessions for a possible snap-back.

First Acceptance,Inc FAC rebounded a little after setting a new annual low yesterday as well, so we’ll look for possible signs of a continued recovery there.


Extended Watchlist:
WRES, GEVO, UNXL, CRC, DWA(Buyout talks)