Blue Horseshoe Stocks: Wrapping Up Big Week for Options

Options Review

We included a pair of options ideas in yesterday’s premarket report, and scored multi-bag hits on both accounts.

We were banking on a third straight bullish day for the markets with our SPY idea, and betting that the huge premarket gap-up on SFIX was unsustainable. In both cases we were correct, and it provided us with the following opportunities:

SPDR S&P500 ETF (SPY) Weekly $283-284 Calls
$283 Calls – Range:
.98-2.81  – Max Gain: 187%
$284 Calls – Range: .57-2.00 – Max Gain: 251%

Today we will be looking to roll up our strike price on the SPY and tracking the SPY Weekly $285-286 Calls*.

Stitch Fix, Inc. SFIX Weekly $31-30 Puts
$30 Puts – Range: 1.40-3.22 – Max Gain: 130%

*Never trade weekly options on Friday, unless you are an advanced level trader with access to disposable funds!

At Home Group, Inc. HOME

HOME just missed on earnings and received an analyst downgrade, but on the hunch that the resultant gap-down was based on overreaction, we’re going to radar a set of contracts in the HOME chain to monitor in the event of a rebound. There is an enormous gap now sitting on the chart just waiting to be filled. We’ll have plenty of time to see that happen with the HOME 09/20 $8-10 Calls.

Extended Watchlist:

IDOI, HAIR & Today’s Extended Watchlist

IDO Security, Inc. IDOI

IDOI has been on fire of late, doubling in value over the past three trading sessions, with four consecutive green days in a row.

Normally at this point, we would consider taking profits off of the table, however, we feel that there is still potential for added gains here. In instances such as this, when our money has doubled yet strength remains, we are likely to sell half of our position, and play the rest with the house’s money. is still currently giving IDOI a 72% Overall Buy Rating


Biostem U.S. Corp HAIR

After a recent 597% run from the .06 area to .46, HAIR has consolidated, and been making higher lows off of support in the low .20′s.

Just in the past week, the stock got above the 20 & 50 day moving averages, leading us to believe that another run is in the making.

There are also several indicators on the chart which suggest that HAIR has some real potential for growth (no pun intended!).



HZNP has appeared in our watchlist recently. Yesterday, the stock was up 7%, and appears as if it may gap up this morning. With the company’s FDA PDUFA date approaching on Friday, we certainly want to keep a close watch over HZNP in the next few sessions.

AMRN’s FDA date is this Thursday, one day prior to HZNP’s. We are watching closely here as well.

TLON’s date is coming up in a couple weeks (08/12/12), so there isn’t as much of a sense of urgency just yet, but we will still be following along as zero-hour approaches.


Extended Watchlist: