Blue Horseshoe Stocks: Form-4 Alert & More

Options Updates 

We offered up a couple of fresh options ideas in yesterday morning’s report, GIS Weekly $37.50 Calls, and the MU Weekly $31-32 Calls. Despite the markets taking yet another hit in the wake of the Fed’s interest rate hike, both of those ideas managed to produce some positive intraday movement prior to the announcement.

The GIS $37.50′s traded up from 1.31 to 1.80, for a modest 37% rise, but the MU calls did considerably better, logging multi-bag gain opportunities:

MU Weekly $31-32 Calls
$31 Puts – Range: 1.03-2.47 – Max Gain: 140%
$31.50 Puts – Range: .70-2.21 - Max Gain: 216%
$32 Puts – Range: .46-1.83 - Max Gain: 298%


Axovant Sciences Ltd. AXON – Form-4 Alert

We routinely keep an eye out for brow-raising insider trading activity, and have run across AXON today. A trio of stakeholders filed Form-4′s on Tuesday alluding to the purchase of a total of $30M in AXON stock in three $10M transactions, at the current relative lows near a dollar. That amounts to over a quarter of the company’s total market value.

To us, this would seem a fairly big indicator that these institutional investors are very confident that the stock will not fall below these levels. We’ll go ahead and place AXON on an extended term bottom-watch into the New Year.


Extended Watchlist:
OHGI, OPTT, YRIV, GMO, PTX, GERN, SBS, NXTD, MARK, HEAR

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Blue Horseshoe Stocks: DRI Recap & More

General Mills, Inc. GS

First up today, we are taking a look at General Mills following the company’s solid quarterly figures on earnings and profits released here in the premarket.

The stock itself has gotten badly beaten up recently, as have most stocks in what is shaping up to be a very turbulent finish to 2018. However, the strong numbers reported could be just the catalyst to effect a convincing reversal. We’re going to be waiting in the wings with our eye on the GIS Weekly $37.50 Calls to try to take advantage of the situation.


Darden Restaurants, Inc. DRI

We highlighted some calls in the DRI chain yesterday, the DRI Weekly $95-105 Calls. Of those three sets of contracts, we got some very nice activity from two out of the three. While the $95′s were too far in the money, the $100′s and the $105′s fared quite well.

The $100 Calls traded up from a low of 2.85 and hit an even 5.00 for a gain of 75% and the  $105′s surged from .65-1.60, producing a gain opportunity of up to 146%


Extended Watchlist:
DFFN, OHRP, ADIL, HEAR, YUMA, CCJ, TROV, ZYNE, RIOT,
MU($31-32 Calls)

Blue Horseshoe Stocks: SGSI News Alert

Spectrum Global Solutions, Inc. SGSI – Update

In our initial report on SGSI, one of the things we commented on liking most about SGSI is the rapidity with which the company has been pulling down new clients and growing its business in 2018. This morning, we’re going to start things off by relaying a new PR to that effect on to our readers.

(GLOBE NEWSWIRE) — Spectrum Global Solutions, Inc. (OTC:SGSI) (the “Company”), a single-source provider of end-to-end next-generation wireless and wireline network services and staffing solutions to the service provider (carrier) and corporate enterprise markets, today announces that it has received over $500,000 in new contract awards to support carrier network upgrades across the United States. (>>View Full PR)

Did you miss our special report on SGSI last Monday? Check it out now at the following link:

>>View SGSI Report<<



Fresh Options Ideas:

Those readers who are familiar with our mode of operation know that a good post-earnings options play is something we’re always on the lookout for, and we’ve got a couple of those for you this morning. It has been a crowded 24-hours of earnings releases and the two that are sticking out to us this morning are Dick’s Sporting Goods (Bull) and Tiffany’s (Bear).

We’ll submit a set of ideas for each of these chains to track into the end of the week:

Dick’s Sporting Goods, Inc. DKS Weekly $36-38 Calls
Tiffany & Co. TIF Weekly $95-92 Puts



Extended Watchlist:
ASX, NSPR, MARA, ACAD, HEAR, IPCI, SLS

Blue Horseshoe Stocks: Quick Strike Ideas

India Globalization Capital, Inc. IGCC

First up this morning is a recap of IGCC following its inclusion in our premarket extended watchlist yesterday. The stock didn’t blow its lid, but it did continue the solid run of intraday performances off of its lows from earlier this week which were precipitated by the company’s recent delisting from the NASDAQ down to the OTC Markets.

The stock traded in a range from 1.22-1.84 before tapering back off, which stood as an intraday gain of 51% We’re going to look for IGCC to continue to fill the remaining gap on the chart. As you can see on the included snapshot, the MACD is also beginning to converge toward a bullish cross.




Fresh Options Ideas*:

Alibaba Group Holding Ltd. BABA - After beating on earnings and missing on revenues, BABA surged this morning, making it our prime bullish target among companies that reported their quarterly earnings today. We’re going to focus on the BABA Weekly 152.50-160 Calls*.
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SPDR S&P 500 ETF (SPY) – We’ve had some good luck with the SPY this week, which isn’t all that surprising when considering the fact that we have a long documented history of success with this fund. We’re so deep in the money with our previously targeted calls, that we’re going to go ahead and roll up our potential strike prices to the SPY Weekly $274.50-276 Calls* as we close out the week.
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Weight Watchers International, Inc. WTW – Strangely enough, despite also beating on earnings and missing on revs like the aforementioned play, WTW took a gut punch and appears on track for a bearish session. We’re going to be tracking the WTW Weekly $58.50-56.50 Puts* as a result.

Bonus Idea: AMD Weekly $20-21 Calls*

*NEVER trade weekly options on a Friday unless you’re an expert level trader with disposable funds!



Extended Watchlist: 

AMCN, SGYP, CPHI, HEAR, CRC, LCI, PACB, SLS

Blue Horseshoe Stocks: DAL Options & More

Delta Airlines Inc. DAL

Despite a tumultuous day for the markets yesterday, and mostly everything taking on a bearish characteristic, we’re still going to go bullish on DAL in the wake of the company’s quarterly earnings report released this morning.

Despite rising fuel costs, the company revealed that profits soared well past expectations as a result of increased demand leading to higher ticket prices.

As we always try to do when a company posts a solid beat, we’ll designate a range of options to place on watch, in this case the DAL Weekly $49.50-52 Calls. We’ll go ahead and track these into the end of the week. DAL stock was already oversold, getting hammered for weeks, so this report may be just the catalyst needed to effect an impressive reversal.



SPDR S&P 500 ETF (SPY)

We had great success with the SPY earlier this week, and we want to come back to it this morning in the wake of the markets getting crushed yesterday. With the amount of uncertainty and potential volatility out there, we want to set ourselves up to have an active idea no matter which way the winds blow.

Should the SPY fall below $276, we will target the SPY Weekly $277 & $276 Puts. If it pulls above $276 we will focus on the $276 and $277 Calls, so either way, we should be able to quickly identify the proper course once trading commences. .


Extended Watchlist: 
SBGL, PRPO, RH, HEAR, CEI, HMY, ACST, HSGX