Blue Horseshoe Stocks: DMTX Review, Options & More

Dimension Therapeutics, Inc. DMTX

We alerted on DMTX after a sizable gap-up few weeks back on the morning of August 25th. That day we would observe a low of 2.90 in the stock, and it never looked back.

Throughout the month of September the stock has mostly been stair-stepping its way up in steady fashion, but news of an unsolicited buyout offer (@5.50/share) kicked this play into a much higher gear to start things off this week, and yesterday DMTX attained a high of 5.90.

That works out to a three-week double-bag swing of 103% We wouldn’t expect to see the stock travel much higher, certainly not without confirmation or further details on a proposal, but will still keep our eyes open for further activity after a very strong session yesterday.

Fresh Options Ideas

We’ve got a pair of options possibilities  to present this morning. Yesterday’s market sentiment was exceedingly bullish, with more than 65% of NASDAQ quoted stocks trading at or above their 50-day moving averages.

Today, better than expected numbers on Housing Starts and Building Permits were reported, which could assist in keeping the momentum moving.

SPDR S&P500 ETF (SPY) – For a direct market analog, we generally turn to the SPY, having had immense success with it on several separate occasions in the past. We’re going to signal the SPY Weekly $249.50 & $250 Calls for observation as we approach midweek.

The Kroger Co. KR – We’re also noticing a heck of a bottom setup on KR. A strong multiple bottom signal showing the stock at a solid support level, and a couple of gaps to the upside on the chart leaves us looking at a pair of longer-term contracts. We’re going to place the KR 11/17 $23 & $24 Calls on watch in the event of a recovery for Kroger.

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Blue Horseshoe Stocks: ANF Review & More

Abercrombie & Fitch Co. ANF

We’ve been going heavy on the options front all week, and one of the fresh ideas we came up with for our premarket report yesterday morning, were the ANF Weekly $10 & $11 Calls.

Despite posted losses on their earnings report, they still beat the expectation, and the move the stock made facilitated some pretty nice gains in our highlighted contracts. The $10 Calls traded in a range from .60 up to 1.48 for a 146% rip, while the $11 Calls ran hard from .11 to .53, marking a stellar move of 382%

We’re seeing another premarket push this morning, so we’ll definitely want to continue to track the activity* here as we close out another trading week.

* We don’t include mentions of weekly options contracts on a Friday without explicitly warning our readers every single time. Trading weekly options at the end of the week is an exceedingly risky proposition that should never be attempted by beginning or novice traders!

MoSys, Inc. MOSY

We included a mention of MOSY in yesterday morning premarket report, and while it didn’t necessarily produce a blockbuster run, its intraday performance was respectable.

We saw the stock trade up from an early low of 1.06 and reach 1.35, which comes out to a modest 27% rise. It did so on volume to the tune of more than 14X the monthly average.

Extended Watchlist: