Blue Horseshoe Stocks: Stellar Options Calls & More

Valeant Pharmaceuticals, Inc. VRX – Options Recap

In yesterday morning’s premarket report, we noted that VRX had been coming off of recent annual lows, had a beat on earnings, and was up considerably in early trading.

Our exact words were “We want to formulate an options idea to coincide with the increased activity and expected price action in a stock in this position. We’ve seen this sort of pattern many times before, and if things play out similarly here, the VRX Weekly $10.50-12 Calls could be in line to see considerable gains.” Things did play out similarly. We did indeed see considerable gains, and quite frankly, that’s an understatement.

As VRX itself traded from 10.57 to 12.43, our targeted options calls posted astronomical moves on the day, giving traders a chance to grab a piece of the following gains:

$10.50 Calls – Range: .40-.1.92 – Max Gain: 380%
$11 Calls – Range: .18-1.50 – Max Gain: 733%
$11.50 Calls – Range: .08-1.05 – Max Gain: 1212%
$12 Calls – Range: .02-.74 – Max Gain: 3600%

This wasn’t even the first percentage gain in the thousands that we’ve rooted out in the past week. The SPY Weekly $238-50-239.50 Calls that we highlighted in Friday morning’s premarket report yielded a 4600% gainer on that day. Both of these plays serve as perfect examples of why we don’t limit our daily reports to stocks alone.


Cleantech Solutions International, Inc. CLNT

We did have a very nice play on the stock side of things as well yesterday, after we tagged CLNT in our extended watchlist. It ended up making a solid early push from a low of 4.11, and ran as high as 6.99 inside the first hour of trading.

That was good for intraday gains of up to 70% which we feel is quite good for a stock in this price range. CLNT is pulling back in premarket, but we will remain interested in possible bounce activity in the event that it holds support above yesterday’s swing low.



Proteon Therapeutics, Inc. PRTO

There’s an interesting situation unfolding with PRTO that warrants placing the stock on watch today. Despite reporting Q1 losses of $6.5M, the stock is gapping up heavily on the strength of a concurrent announcement. It pertains to the fact that the company’s investigatory treatment, vonapanitase, has received Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA).

Whenever such FDA news hits wires the resultant activity on the chart is sure to be interesting, which is evidenced by the the fact that traders are ignoring the disappointing quarterly figures that coincided with this event. Thus we are eager to track PRTO as we head through midweek.


Extended Watchlist:
ASTI, BZUN, LBIO, AAXN, ARGS, MTBC, REXX

Blue Horseshoe Stocks: Options Ideas, Bottom-Play & More

Kraig BioCraft Laboratories, Inc. KBLB

Despite an overall lag in the markets yesterday, due in part to the Greek financial crisis, KBLB did manage a brief surge right out of the starting gate. We tagged it for its attractiveness with regard to its positioning on the chart as well as the interesting news that was released; the company claims to have synthesized a material which is stronger than spider silk. (>>View PR)

The stock traded in a range from its opening price of .0365 up to a high of .05 inside of the first ten minutes, which marked a 37% rip.

While KBLB failed to maintain that early increase, the nature of yesterday’s news alone will cause us to reserve a spot on our watchlist for this play. If the company has indeed developed a super-material as they’ve described, it could ultimately be a game-changer in everything from the medical field, to space exploration, and nanotechnology.


Viscount Systems, Inc. VSYS

VSYS it hitting our radar as a potential bottom play with a potential news catalyst hitting presswires this morning.

VANCOUVER, BC / ACCESSWIRE / June 30, 2015 / Viscount Systems, Inc. (“Viscount”) (OTCQB:VSYS), a software company specializing in physical and logical security solutions, today announced that it has fully retired a convertible note held by Vis Vires Group, Inc. The convertible promissory note was issued to Viscount on March 30, 2015 at a principal amount of $169,000 bearing interest at 8% per annum and was used to resolve short term liquidity issues. >> Full PR


New Options Ideas

There’s a fair amount of uncertainty with respect to how the markets will react to the ongoing fiscal turmoil in Greece. They appear to want to rebound this morning, but it could be a false positive. It leads us to a familiar scenario, where uncertain conditions open avenues of opportunity to intuitive traders.

What we’re going to do is sit on the fence and observe SPY 205.50-207 Puts and Calls to start out with, and decide where the action will be once the overall market sentiment has been firmly established. It’s a strategy that’s served us well in the past.

_____

We’re also going to be monitoring JUNO $60-$63.50 Calls as the stock is gapping up heavily in the premarket.


Extended Watchlist:
AMD, AEZS, LBIO, DSKX, SFUN

Blue Horseshoe Stocks: AXN, JDST Recaps & More


Aoxing Pharmaceutical Co. Inc. AXN

AXN emerged as one of the day’s most interesting plays following its inclusion in Friday morning’s premarket report. After briefly touching an early morning low of 1.15, the stock would go on to register a subsequent high of 1.63.

That works out to an intraday increase of 42%, and it came on roughly fourteen times the three-month average volume.

After a fairly strong close (1.49) in which the stock held well over half of its daily gains, AXN appears to be gapping up slightly this morning, having risen back into the 1.50’s. This type of activity is characteristic of a classic “momo play”, so we’ll have an eye peeled for AXN as things kick off today to watch for a possible continuation of that momentum.


Pervasip Corp. PVSP

When PVSP appeared in one of our daily reports in late January, we referred to it as a super-subpenny ‘bottom-bouncer’, and it has held to that description in the truest sense over the past several weeks. Less than two weeks ago, the stock was trading at the lowest possible increment (.0001), and toward the end of last week it began to ramp its way up.

On Friday, there was a Golden Cross of the 50DMA over the 200DMA, and PVSP traded as high as .0009, which marks a rapid jump of 800% over our recently observed low. In order for us to remain interested in this play, it will need to maintain support at or above .0005 on any pullbacks.


Direxion Daily Jr Gld Mnrs Bear 3X ETF (JDST)

JDST made a modest yet notable move on Friday as well., This one also appeared on our extended watchlist, and we were pleased with its steady uptrend that lasted  throughout most of the morning.

From an initial low of 11.40, the stock pushed its way to 12.60, a gain of 12%

Being a gold miners bear ETF, JDST saw this increase as the release of healthy jobs numbers and the Dollar at an 11-year high coincided closely with gold nearing a three-month low.


Extended Watchlist:
GEVO, AVEO, LBIO, OPXA, CTIC