Blue Horseshoe Stocks: ECYT Recap & More

Endocyte, Inc. ECYT

Our first order of business this morning is to review the recent performance of ECYT, which we initially slated for observation in our report on February 28th. At the time, the stock had been slowly gaining momentum for much of February, and it looked ripe for a more pronounced breakout.

That day, as the stock was trading for as little as 4.51, we witnessed an explosion in volume that has precipitated a very impressive run, persisting for over two weeks up to the present time. Yesterday’s session brought a new high of 11.54 in ECYT, which marks an upswing of 156% in a relatively short time frame.

Valeant Pharma International, Inc. VRX

On Monday morning, we came up with some options ideas for VRX, which we noted was “ready for a bottom bounce”. We also made reference to a huge Form-4 buy of $108.8M came in as well, which led us to postulate that “for now the stock has gone as low as it’s going to go.”

We couldn’t have been any more spot-on in our assessment of VRX, and the result has been a solid performance for the short-term calls we put on watch, the VRX Weekly $15 & $15.50 Calls. The $15′s ran from .65-1.15 for a gain of 77%, while the $15.50′s moved from a low of .30 to .71, an increase of 137%

We had some longer-term ideas as well which we will likely come back to in an upcoming report, as it appears VRX will continue to head up. On that note, we’ll also look to roll up our strike prices on the weekly calls to the $16 & $16.50′s.


Fresh Options Idea:

Walmart, Inc. WMT 04/20 $95-97.50 Calls

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Blue Horseshoe Stocks: Options, RMRK Recaps & More

Options Recap –
We cast a pretty wide net with respect to options ideas in the retail sector in our premarket report yesterday morning, and our efforts didn’t go unrewarded. Both EXPR and AEO provided us with some nice chances.

Express, Inc. EXPR – We were tracking the EXPR 09/15 $6 & $7 Calls. The $6′s traded in a range from .45 -.92 for a gain of 104%, while the $7′s logged an even 100% double-bag run from .15-.30.

American Eagle Outfitters, Inc. AEO –   For American Eagle, we were looking at the AEO Weekly $12 & 12.50 Calls. The $12′s recorded our biggest options gainer of the day with a 212% move from .08-.25, and the $12.50′s were another even 100% push , trading from .05-.10 on the day.

More Ideas -
We’ll keep the post-earnings retail options train rolling today with two fresh sets of ideas using the Abercrombie & Fitch Co. ANF and Dollar Tree, Inc. DLTR chains. We’ll have the ANF Weekly $10 & $11 Calls, and the DLTR Weekly $78-82 Calls on watch as we head into week’s end.

Rimrock Gold Corp . RMRK

We included RMRK in yesterday morning’s premarket report, after noticing some abnormal activity building up in the previous session.

It was a good thing that we did, because yesterday’s performance from the stock was explosive. It traded in a range from .0006 to .0025 on the day, for a fantastic single-session rip of 316%

The move occurred on volume of more than 1.8 billion shares traded; an all-time high for RMRK.

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Blue Horseshoe Stocks: Retail Focus

Retail Focus

Macy’s, Inc. M - With the holiday season fast approaching, we’ll be on the lookout for retail plays with good upside potential, and Macy’s could be a good fit in that regard.

You can take a look at the chart below and see that the stock has just begun to show signs of a rebound after getting absolutely hammered earlier this month. Indicators suggest that the stock is rather oversold.

We’re going to radar a set of longer-term contracts, the M 11/17 $23 Calls, which should see a nice move if the stock can indeed regain the ground it’s lost over the past few weeks. There’s also a gap on the chart to the $28 area, the filling of which would propel those contracts to huge gains.


JC Penney Co. Inc. JCP - Another retailer we’ve talked about many times in the past, particularly leading up to and during the holidays, is JCP.

Similar to the above mentioned play, the stock took a punishing hit to its PPS over the past few weeks, and has shown the beginnings of a rebound. It has an even larger gap on the chart, and a chance to fill it even quicker.

The stock itself could end up being a good recovery play, but we’ll also want to put a couple sets of options contracts on watch as well, with the JCP 11/17 $4 and 4.50 Calls.


More Retail Ideas – Also in the retail sector, and each with premarket earnings beats, are American Eagle Outfitters, Inc. AEO and Express, Inc. EXPR. We’re going to radar the AEO Weekly $12 & 12.50 Calls, and the EXPR 09/15 $6 & $7 Calls.

Zion Oil & Gas, Inc. ZN

We also wanted to quickly update readers on the performance of ZN, after it was a topic of discussion in yesterday’s premarket report. While the stock didn’t break out by any means, it did trade from a low of 2.95 to a high of 3.42 for a modest 16% intraday move.

It did, however, manage to close just two cents below its high of day, so we’ll have it on continued watch this midweek, looking for the recording of higher highs and higher lows.

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