Blue Horseshoe Stocks: Bottom-Plays & More

Big Board Bottom Plays

Ra Pharmaceuticals, Inc. RARX – The first of a pair of NASDAQ-listed stocks with nice chart setups, RARX has actually been building a solid recovery trend off of its bottom since last week. A couple of Form-4 filings around the same time show two huge $15M blocks purchase by two separate insiders at the stock’s lows.

Meanwhile, there’s still a fair bit of ground to recover from what it has lost in the past ten weeks or so. RARX flirted with its 50DMA yesterday, so we’ll be looking for a break past that point, with indicators on the chart suggesting a fair chance of that happening.


Liberty Tax, Inc. TAX – We’ve also noted the recent bludgeoning of TAX, which has been in a general downtrend for the better part of five months. In this case, we haven’t reached bottom-bouncer status yet, but more of a bottom-watch. At present, the stock is now heavily oversold, on the heels of the dismissal of its CEO.

With tax season upon us, this is the time of year that we’d expect companies such as TAX to do their highest volume of business, so now seems as good a time as any to track this play for a bottom-bounce.

Advance Auto Parts, Inc. AAP

The last time we talked about AAP was a few months back, and we managed to find some nice gain opportunities within the AAP options chain following the company’s strong quarterly report.

AAP reported quarterly earnings once again this morning, and we thought we’d take another crack at it, by signaling the AAP 03/16 $105-115 Calls for observation.

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Blue Horseshoe Stocks: Continued Options Success

Twitter, Inc. TWTR – Options Recap

Our first order of business in today’s options-heavy report is to go over the second straight session of excellent intraday runs TWTR Weekly $15-16 Calls which we designated as targets in Wednesday morning’s premarket report.

This midweek, Twitter had posted losses that were less than expected in conjunction with rising user numbers. It has provided us with some really good opportunities, which were as follows:

$15 Calls – Range: .84-1.61 – Max Gain: 92%
$15.50 Calls – Range: .39-1.10 – Max Gain: 151%
$16 Calls – Range: .13-.63 – Max Gain: 384%

At this point these contracts owe us nothing. Granted that these are weeklies and it’s Friday, coupled with the fact that the stock has rushed into heavily overbought territory in just a short time, we’re fine moving on to the next thing which we’ll get to in a moment.

United Parcel Service, Inc. UPS

First we want to go over our UPS options idea that we formulated fresh for yesterday’s premarket report. This was another earnings-related idea, as a great deal of our options calls tend to be, and it worked like an absolute charm.

We signaled the UPS 05/05 $108-111 Calls and every single contract in that range produced chances for spectacular multi-bag gains on the day, with the $111′s stealing the show on a seven-bagger!

$108 Calls – Range: .48-1.70 – Max Gain: 254%
$109 Calls – Range: .23-.99 – Max Gain: 330%
$110 Calls – Range: .21-.52 – Max Gain: 148%
$111 Calls – Range: .04-.33 – Max Gain: 725%

These plays, we can leave on our radars as they don’t expire until the end of next week. If UPS manages to convincingly crack through the 200DMA at 109.00, things could get very interesting.

Western Digital Corp. WDC – Fresh Idea

As for the play that’s catching our attention on this morning’s scan, we’ve got yet another post-earnings target with WDC. The stock has been trading in an upward channel for the better part of a year now, and the company just put out a solid beat for Q3 while issuing a bolstered Q4 outlook.

We’ll try to take advantage of the commotion it’s causing on the chart with the WDC Weekly $90-92.50 Calls, but please remember the warning we always give in these situations: Never attempt to trade weekly options on a Friday unless you are a highly experienced trader- it’s an exceedingly risky proposition.

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Blue Horseshoe Stocks: Fresh News Plays & More

FreeSeas, Inc. FREE

We mentioned FREE in yesterday’s morning report as a bottom-play that was gaining momentum. The stock had begun to show signs of life after recently establishing a new 52-week low, and our focus paid off almost instantly.

We witnessed a slight dip to a low of .1113 shortly before 10AM, after which time FREE proceeded to surge its way to a daily high of .179. It registered as a 61% intraday swing before the stock tapered back to close at .091.

We’ll continue to observe the activity on the FREE chart as the week progresses, as there is a fair chance that we will continue to see sizable swings in PPS.

Axion Power International, Inc. AXPW

Speaking of major runners, the call we made on AXPW on Monday continued to extend its gains early in yesterday’s session. We caught this gem at a low of .0421, and watched as it went on to touch .36 before it began its pullback.

The move extended the total range we witnessed over just a two-session span to a whopping 755%

For us to remain interested in AXPW for further opportunities, we’ll need to see it maintain support at or above yesterday’s swing low of .14. Key resistance is sitting between .18-19.

Fresh News Plays

Synergy Pharmaceutical, Inc. SGYP
came with some positive news this morning, and is gapping up heavily in the premarket. We’ll look for a potential dip-and-rip scenario to occur following the opening bell.


Blue Shere Corp. BLSP announced a tentative share buyback program this morning that would allow for the company to acquire up to $500K-worth of its common stock from the open market and/or via privately arranged transactions. Couple that with a chart that has the look of a classic bottom-play, and we’re very interested to include BLSP on our watchlist this midweek.

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Blue Horseshoe Stocks: New Options Idea & More

Vivint Solar, Inc. VSLR – Options Idea

VSLR caught our eye yesterday as the stock made considerable progress in coming off of a recent bottom, aided by Q4 financials announced Wednesday, post-market which came in better-than-expected.

In the midst of this rebound, we’ll be looking to possibly take advantage via the options chain. Currently, we’re interested in following the activity on the April 17th $11 Calls (Last Trade:1.30).

VSLR has a 1-year analyst estimated price target of 19.80, and is presently trading well below that range, thus it could turn out to be a stock that we continue to track over an extended period of time.

AVEO Pharmaceuticals, Inc. AVEO

We’re watching AVEO this morning; the stock broke above its 200DMA earlier this week and has been holding support above that level. Yesterday it underwent a gap-and-fade, ultimately finding support at 1.36. and that’s the level we’ll want to see it maintain on any further pullbacks today.

The main thing drawing our attention toward AVEO is the current chart setup.As you can see on the snapshot below, it is showing a strong RSI, a bullish MACD, and appears to be building toward an elusive Golden Cross; a relatively rare event for which we’re always keeping our eyes peeled.

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Blue Horseshoe Stocks: DDD Update, ISR & Extended Watchlist

3D Systems Corp.  DDD

Our regular readers will recall our initial alert on DDD Options a week ago today- wherein we tagged the $52-53 Calls. In the sessions that followed, we were afforded the chance at some large gains.

The same ideas could have been put to work to kick off this week, so anyone who continued to track DDD along with us, is certainly sitting in a good position now.

For instance, the $52 Calls, which were trading at a low of 2.10, closed at 4.82, a 129% intraday move.

The $53 Calls fared even better, coming very close to yielding a double-bagger as they ran from a low of 1.37 up to 4.10, good for up to 199% in gains.

Some of the other stocks in the 3D Printing sector (Like VJET and SSYS) have also made big moves like DDD, while another play we’ve been monitoring in the space, ONVO, has yet to do so. For this reason, we want to put ONVO on watch as well, in the event that it follows suit with the other stocks in the industry.

IsoRay, Inc. ISR

ISR is one that we are going to add to our watchlist today, and it comes to us as a stock that we feel is in a good spot on its chart. We can see potential value here in the short, medium, or long term, and will begin tracking it from here on out.

As you can observe on the chart below, we’re looking at an ascending wedge on ISR, a pattern which can help to judge its trends. Whichever way it breaks out of the channel is generally where the trend will lead. A dip below support could mean heavy losses, while a breach of resistance could mean a serious breakout.

In premarket trading the stock is currently gapping up above that channel, so we have it on close watch to break out and possibly test its previous swing highs at 3.50 and above. A move past that area on the chart would mean a full-on Blue Sky Breakout, so we definitely want to pay attention.

BARCHART.COM is assigning ISR an 88% Overall “Buy” Rating

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