Blue Horseshoe Stocks: WMT Calls & More

Walmart, Inc. WMT

After a period of a couple of trading sessions where WMT has taken considerable abuse on the chart. After appearing to be gearing up to make an impressive run, the stock gapped down considerably on Tuesday and the backslide persisted through yesterday.

This major selloff has brought the stock down to its lowest PPS since November, and had us thinking about a range of calls to slate for observation in the days and weeks ahead. We’re going to signal the WMT 03/16 $90-93 Calls, which should be in line for some solid activity if Walmart mounts the recovery that, at this point, looks very possible.


Hertz Global Holdings, Inc. HTZ

We would like to put HTZ on watch as a possible bounce play this morning. As you can see on the included chart snapshot, the stock is giving off a strong double-bottom signal, and just fell below its 200DMA yesterday.

We’re going to monitor the activity here closely, because as you can see, there is a considerable amount of room to run to the upside, and the stock has been approaching heavily oversold territory.

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Avis Budget Group, Inc. CAR

While we’re on the subject of car rental agencies, our eye has also been caught by Avis, whose stock just came down to an area of trendline support, and also posted a Q4 earnings beat.

We’re going to look for opportunities in the CAR 03/16 $42-44 Calls in coming sessions.


Extended Watchlist:
AIMT, SGMO, ETE, PBR, RXMD, STMP, MLNX, MBRX

Blue Horseshoe Stocks: Options Update & More

Options Update

Hertz Global Holdings, Inc. HTZ -  Yesterday, we signaled our interest in HTZ Weekly $11 & $11.50 Calls and began to see instant returns. The $11 Calls traded in a intraday range from .27-.46, allowing for single-session gains of up to 70%

There wasn’t much volume to speak of for the $11.50′s just yet, but we expect that to change this morning as HTZ is once again making a strong move, gapping up in premarket trading this morning. Not only should we see activity pick up with those contracts, but the gains we’ve observed in the $11′s thus far are almost certain to be extended should this uptrend continue to carry into today’s session.

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Lulu Lemon Athletica, Inc. LULU – Our eye is drawn to LULU this morning in the wake of its earnings release. Despite mixed results, the stock is gapping up here in the premarket. In order to take advantage of a potential rip out of the gate, we’re going to set our sights upon LULU Weekly $67-70 Calls.


Gevo, Inc. GEVO

GEVO is a familiar play that we’ve mentioned in the past, although we can’t provide specific reference at the moment with archives being hosted on our server currently under malicious attack.  We want to call attention to it once again this morning.

The stock began ramping up on Monday, at which time is was trading in the mid-.30′s, only to go on a massive intraweek run that took it to a new high of .685 yesterday, and an impressive 1.95 high in this morning’s premarket. It has tapered back a bit, so we’ll be anxious to track for the possibility of a bounce followed by another spike once regular trading commences.

We’ll need to see the stock maintain support above a dollar on any pullbacks in order for it to keep our interest.


Extended Watchlist:
GNBT, CANN, IORG, EMPO, MYHI(Bottom-Bouncer)

Blue Horseshoe Stocks: New Plays, Fresh Options Ideas & More

Options Ideas

The first thing we want to do this morning is provide an options update on the idea we submitted in yesterday morning’s premarket report, as well as furnish a new idea on another interesting prospect.

Bank of America Corp. BAC - Our targeted BAC 07/15 $15 Calls didn’t exactly knock our socks off, but still recorded a notable intraday upswing. We watched as they traded up from a low of .27 to a high of .34; a modest but respectable gain of 26% We’ll be sure to leave a slot on our watch-screens reserved for those contracts with more than a month remaining until their expiration.

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Fresh Idea: Hertz Global Holdings, Inc. HTZ – Last week, billionaire activist investor Carl Icahn made a sizable increase to his already huge position in HTZ, to the tune of roughly $9.6M added at prices just below $10, making him a 15.24% stakeholder. The stock has been performing exceedingly well since the transactions went public.

We’ve benefited greatly from following Icahn’s money in the past, and want to tag some HTZ Calls for tracking on the chance that it could happen again. Our targets are going to be the HTZ Weekly $11 & $11.50 Calls.


Energy Sector Ideas

Stone Energy Corp. SGY – Is looking strong in premarket trading today. The stock recently set a new 52-week low approximately three weeks back, and has made a couple of nice moves off of that bottom since then.

We’re interested in tracking the activity in this play in sessions to come, especially granted the fact that it will be undergoing a 10-for-1 reverse split, effective as of Monday’s opening bell.

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Rex Energy Corp. REXX - This stock has been in a similar position on its own chart, making good strides off of recently-registered relative lows, and has actually breached its 50DMA (.85) in early trading this morning. The next patch of resistance is likely to arise in the channel between 1.20 and the 200DMA of 1.45.


Baristas Coffee Co., Inc.  BCCI

Lastly,  a quick recap of BCCI’s performance yesterday after appearing in our premarket report. From a low of .06, we observed the stock trade up to a high of .08; an intraday move of 33%

This is another stock that recorded new 52-week lows toward the end of May, and has followed up with solid moves up off of that bottom. We’ll continue to keep an eye on the activity in this play.