Blue Horseshoe Stocks: Interesting Bottom Play

Chaparral Energy, Inc. CHAP

We noticed CHAP on our routine morning scan today, and wanted to highlight the current situation for the stock as a potential longer-term swing trade idea. We are attracted to the setup of the chart, which is presently exhibiting a classic double bottom. At the start of the calendar year, CHAP came off of the same lows and surged nearly 100% to the $8-range.

We also want to relay the cause of CHAP’s recent analyst upgrade. The company report a slew of operational and financial highlights in its recent 10-K pertaining to the company’s 4th quarter and full year 2018 performance.

CHAP Q4/FY 2018 Highlights

  • Recorded 2018 full year STACK production of 14.5 thousand barrels of oil equivalent per day (MBoe/d), representing a 52% year-over-year increase
  • Achieved 2018 full year total company production of 20.5 MBoe/d
  • Reported full year 2018 net income of $33.4 million, or 73 cents per diluted share
  • Achieved full year 2018 adjusted EBITDA, as defined below, of $125 million
  • Grew 2018 total proved reserves to 94.8 million barrels of oil equivalent (MMBoe), which adjusted for 2018 divestitures marks a 35% year-over-year increase, and represents a PV-10 value of $686 million
    • Increased STACK proved reserves by 50% year-over-year to 74.1 MMBoe, while replacing 519% of STACK production
  • Invested $194.7 million in STACK drilling and completion (D&C) activities in 2018
  • Reduced total company lease operating expense per barrel of oil equivalent (LOE/Boe) almost $4 from $10.96 in 2017 to $7.24 in 2018
  • Strengthened the balance sheet by issuing $300 million of unsecured senior notes and increasing the borrowing base to $325 million in 2018 (>>View Source)

We’re going to be very interested to track the stocks progress on the heels of these revelations, and fully expect to see a sustain rebound attempt in the relatively near future.


Fresh Options Ideas:
DG Weekly $115-113 Puts

DLTR Weekly $103-101 Puts


Extended Watchlist:
INNT, DTCI, ORDO, AKTX, PLUG,

Blue Horseshoe Stocks: DG Recap & More

Dollar General Corp. DG

We selected a wide range of puts in the DG chain on Tuesday morning, the DG Weekly $109-103 Puts following the company’s earnings release, wherein it lowered its outlook for the year. Despite a sales beat, shares slid considerably. With the help of an overall market downtrend in which the Dow took an 800 point hit, every set of contracts we selected made multi-bag gains.

$109 Puts – Range: 2.20-6.80 - Max Gain: 209%
$108 Puts – Range: 1.76-5.80 – Max Gain: 230%
$107 Puts – Range: 1.25-4.40 - Max Gain: 252%
$106 Puts – Range: .88-4.18 - Max Gain: 375%
$105 Puts – Range: .55-3.30 – Max Gain: 500%
$104 Puts – Range: .40-2.53 - Max Gain: 532%
$103 Puts – Range: .30-1.90 – Max Gain: 533%
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Fresh Idea:
MIK Weekly $15 & 17.50 Calls


Aphria, Inc. APHA

We’ve had an eye on Aphria, and indeed the whole Canadian cannabis market, for years.  Having previously been traded under the symbol APHQF on the OTC Markets, the Canadian cannabis company now trades on the NYSE and bills itself as a drug manufacturer in the healthcare industry.

As a result of allegations against the company, the stock has taken a severe beating in recent sessions. We’re going to begin to observe more closely as a potential bottom bounce play in the days and weeks ahead, as it has reached the point of being heavily oversold with a huge short interest. We’ll want to be hanging around when the shorts start to get squeezed.


Extended Watchlist:
SGSI, PSTG, TVIX, OZM, AAC, WKHS, XSPA, DCIX, MDCA

Blue Horseshoe Stocks: Updates, Earnings Play


Cronos Group, Inc. CRON

We alerted CRON initially on Halloween morning and rode several options ideas to multi-bag gains through the early goings of last month. Since that time, the range on the stock itself has been rather impressive, with CRON shooting to new highs yesterday.

On the day of our initial report on CRON, we observed a low of 7.10. Yesterday’s new high came in at 11.89, which represents a gain of 67% in just under five weeks.



Spectrum Global Solutions, Inc. SGSI

We’ve also got another news alert for SGSI this morning, marking the third update since our special report on the company, which we released on the morning of November 19th. We highly suggest our readers check out the SGSI Report if you missed it.

Dec. 03, 2018 (GLOBE NEWSWIRE) — Spectrum Global Solutions, Inc. (OTC: SGSI) (the “Company”), a single-source provider of end-to-end, next-generation wireless and wireline network infrastructure services and solutions to the service provider (carrier) and corporate enterprise markets, provides the following update to its shareholders and investors from its CEO, Roger Ponder. (>>View Full PR)


Zillow Group, Inc. Z – Update

A couple of Wednesday’s ago, on the 21st, we highlighted some options ideas on Zillow, which caught our eye when we noticed some insider buying at relative lows. The insider buying trend has continued, as has Zillow’s filling of the gap we had identified on the chart.

Yesterday the stock hit a new high of 37.75, which from our observed low of 27.92 marks a move of 35% in just over a week’s time. That allowed new highs in the Z 01/18 $30-40 Calls on our watchlist.

Our signaled options ideas have thus far provided us with the following gain opportunities:

$30 Calls – Range: 1.57-6.66 - Max Gain: 324%
$35 Calls – Range: .57-3.83 – Max Gain: 572%
$40 Calls – Range: .10-1.42 - Max Gain: 1320%
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Fresh Options Idea:
Dollar General Corp. DG Weekly $109-103 Puts


Extended Watchlist:
LIQT, RHE, GTHX, ADMP, AMPE, UPL, USLV

Blue Horseshoe Stocks: Options Updates & More


Dollar General Corp. DG

We highlighted a wide range of calls in the DG chain yesterday morning on the heels of the company’s earnings release, the DG Weekly $94-96.50 Calls

While every contract in the range did see intraday gains, we’ll just focus on the $94-95.50′s, as the $96 & $96.50′s didn’t get pushed deep enough in the money to make similarly large moves.

$94 Calls – Range: .50-1.93 – Max Gain: 286%
$94.50 Calls – Range: .42-1.46 – Max Gain: 248%
$95 Calls – Range: .30-1.40 – Max Gain: 367%
$95.50 Calls – Range:  .30-1.00 – Max Gain: 233%


Burlington Stores, Inc. BURL 

We also had the BURL 03/16 $120 & $125 Calls on watch beginning last Thursday, and between then and now, we ended up witnessing some nice moves from those plays.

Our observed range on the $120′s has been 4.04-9.53 (+136%), and the $125 have run from 1.35-4.73 (+250%) in just a week’s time.


SPDR S&P 500 ETF (SPY)

We’re going to come back to the SPY today after having seen the markets experience four consecutive days of losses this week.

We’ll be looking for a reversal of fortune for the SPY, and will be tracking the Weekly $274-275.50 Calls* today.

*Do NOT trade weekly calls on a Friday unless you are an expert level trader!


Extended Watchlist:
AUPH, KBSF, OPGN, SMRT, ZSAN,

Blue Horseshoe Stocks: RKDA Explodes & More

Arcadia Biosciences, Inc. RKDA

We originally put RKDA on our radars toward the end of January, but in the ensuing weeks, the stock mainly traded sideways.

This week, both Tuesday morning and yesterday, we included it on our watchlist once again as we noticed it was finally building up some momentum. Yesterday that momentum turned into an absolute explosion as RKDA blasted off to an astounding new high.

Just since Tuesday morning it has traded from a low of 11.17 to a new high of 54.9895 yesterday. That’s a two day swing of 370% and a mind numbing increase of 1244% over the 4.09 low we observed subsequent to our initial mention!


Valeant Pharma International, Inc. VRX

On Monday morning, we tagged the VRX Weekly $15 & $15.50 Calls, and after finding success with those as VRX continued to move, yesterday we expanded our target range to include the $16 and $16.50′s  as well. After another bullish session, all of those ideas produced opportunities for big gains.

The $15′s from our observed low on Monday of .65, hit 2.21 for a gain of 240%, while the $15.50′s, from .30 reached 1.73, an increase of 477%

The $16 Calls ran from .35-1.24, for a single sessions rip of 254% and the $16.50′s traded in a range from .13 to .75, a 477% upswing.



Fresh Options Idea:

Dollar General Corp. DG Weekly $94-96.50 Calls


Extended Watchlist:
ABCD, ABEO, APRN, APTO, ONCS, EVEP, RUBI, XXII,