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.


Extended Watchlist:
STAF, CAPR, MRTX, NTEC, NBRV, RNVA, AGTC

Blue Horseshoe Stocks: LODE, Options & More

Potential Bottom-Plays

Comstock Mining, Inc. LODE - We’re coming across a serious bottom-bounce candidate in LODE this morning. The stock has been in a general downtrend all year long, and was recently beaten back so severely that a rebound was inevitable. That began yesterday, and now we’re very interested to track the activity and see if we can confirm a sustained reversal on this one.

Taking a look at the included snapshot of the LODE chart, it would quite frankly be a little surprising if this play didn’t see a continued rebound, and it’s currently trading up in the premarket, so we’ll surely want to keep an eye peeled as the session kicks off.

Another notable aspect of this play is that the company must find a way to re-attain a share price of at least a dollar by November, or face delisting from the AMEX.

______

MabVax Therapeutics Holdings, Inc. MBVX -  Another similar looking chart striking us as a potential bottom-bounce play. MBVX has been trending down since last fall, and it appears as if it’s ready to make a move off of its recently established annual lows, helped along by a key PR.

The company reported positive phase I results for its MVT-2163 ImmunoPET Imaging Agent, an antibody discovery platform focused on the treatment of cancer. (>>View PR) It’s causing a considerable gap-up here in the premarket, and we’ll be quite interested to follow along with the activity.


The Kroger Co. KR  – Options Idea

KR set its own 52-week lows this spring, and has recently been making a comeback on the chart. They’ve also got earnings coming tomorrow, so we thought we’d formulate an options idea running into that release.

We’ll be looking at the KR Weekly $29 and $30 Calls, which could see some nice action, especially if the company’s earnings beat expectations tomorrow.


Extended Watchlist:
ABIL, MTBC, MBOT, SBGL, LINU, EKSO