Blue Horseshoe Stocks: SPY Calls, More Options

SPY Review

After big success with SPY options earlier last week, we decided to roll up our strike prices and make another pass at an some options ideas on the fund to open things up this week. A reversal on plans to slap tariffs on Mexican goods is helping to fuel a push for the markets in early trading today.

Our ideas for Friday were the SPY Weekly $285-286 Calls, and we’re happy to report some huge single session, multibag gain opportunities came out of those calls for us.

$285 Calls – Range: 1.18-3.86 – Max Gain: 227%
$286 Calls – Range: .59-2.89. – Max Gain: 393%

In order to stay close to the action, we’re going to want to stick with bullish SPY calls and roll up our strike prices yet again to kick off a new trading week this morning. We’re going to radar the SPY Weekly $288-290 Calls.


MGM Resorts International Inc. MGM – Form-4 Alert 

We always scan for new Form-4 submissions, and MGM is the latest subject of insider trading. A director of the company purchased over $20M in MGM stock three separate times last week. Between the buying from Wednesday, Thursday, and Friday, Keith Meister purchased in excess of $75M+ worth of his company’s shares.

That is no small series of transactions, and leads us to believe confidence on the inside at MGm is high that the stock can continue recover off of its recent relative lows. We’re going to signal some longer term calls to correspond with the situation and begin tracking the MGM 08/16 $28-30 Calls.


SPECIAL NOTE: 

We urge readers not to miss out on any of our newsletters this week. We’ve got some plays in cannabis sector that are primed to heat up and we’ll be bringing those to you over the course of the week. You’ll definitely want to catch those, so make sure you’re scanning your inboxes each morning to get in on the action!


Extended Watchlist:
LJPC, AFH, KHC, CFMS, MELI, BYND, FTR, ZM

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:
AMPG, FTD, SNY, RWLK, LJPC, HAIR

Blue Horseshoe Stocks: Form-4 Bottom Play

La Jolla Pharma Co. LJPC – Form-4 Bottom Play

One of the top scenarios we routinely scan for on a regular basis, is a Form-4 Bottom Play. Whenever we witness a stock trading at or near its annual lows being purchased in large amounts on the open market by its own directors, we can feel fairly certain that their confidence in a potential recovery is high.

LJPC is a fantastic example of this at the present time. We’ve just noticed more than 12M shares being purchased by a director in three separate transactions over the past few days, amounting to roughly $6.8M, or nearly five percent of LJPC’s total market cap. (>>View Transactions)

We’ll now treat this as any other bottom watch play, and monitor the stock for a recovery in coming sessions.


Kandi Technologies, Inc. KNDI

We signaled KNDI in yesterday morning’s extended watchlist, and the stock managed a solid move on the day for our first session of observation on the stock since early in the fall.

KNDI traded in a daily range from a low of 4.60 to 5.63, a modest but solid 22% intraday rise, and a good start on a more significant push. We’ll look for KNDI to test its previous resistance in the mid-$6 area going forward.


Fresh Options Ideas:
KBH 01/18 $22 & $23 Calls
BBBY Weekly $13 & $13.50 Calls

Blue Horseshoe Stocks: PLUG, OSLH, BLDP & More

Ballard Power Systems, Inc. BLDP

BLDP appeared in yesterday’s extended watchlist, but it wasn’t even close to its first appearance in our reports. We constantly receive reminders to follow our daily extended watchlist plays closely, in the form of big increases and chances to profit. BLDP is a shining example of this concept, a stock that we’ve tracked since March of last year. Shortly following that time, we would see a low of .76, and the stock has never looked back.

Over the past year BLDP gradually rose up until recently it began to gain ground much quicker. At the start of 2014, the stock was trading in the 1.55-range. Since then it has taken off, culminating in a new high of 7.38 yesterday. Our total possible gain on BLDP yesterday was 31% however, from our original alert low on this stock we’ve seen a huge increase of 871%

As far as options trading ideas go, we are looking at the BLDP 03/22 $6 and $7 Calls.


OSL Holdings, Inc. OSLH

We kicked off a new trading week in grand fashion by tagging OSLH in yesterday’s morning report. The company had released a PR outlining its entry into the legal cannabis sector, and the stock would go on to have a great session.

After opening at .0899, the stock touched a low of .089 before running up to .19 in the afternoon. That move marked an intraday gain opportunity of up to 113% on roughly 28x the 3-month average volume. Congratulations to anyone who was able to take advantage of our timely alert!


Plug Power, Inc. PLUG

Leading up to yesterday morning’s report including old favorite, PLUG, was already one of our all-time standouts. The stock had made an unreal 7129% gain from our first ever mention (@.1155) just over a year ago, to Friday’s top mark at 8.35.

Seeing a low of 8.57 before bulling its way to a new high of 11.41 yesterday, PLUG accounted for an intraday gain of 33%

The overall increase from our first-ever alert would be pushed even higher, to a mind-numbing 9778%


News Out Today

Creative Edge Nutrition FITX

FITX popped up on our news ticker this morning with an announcement we felt was worthy of passing along. We’ve been following along as the company builds its state of the art cannabis grow facility in Ontario, CA, and this morning we received an update:

Mar 11, 2014 (ACCESSWIRE via COMTEX) — MADISON HEIGHTS, MI / ACCESSWIRE / March 11, 2014 / Creative Edge Nutrition, Inc. (FITX), is proud to show the progress on the build out of the world’s largest and most advanced legal cannabis production facility. Please see link below as the company will continually post updated pictures.http://cenergynutrition.com/timeline2014.php  >> FULL PR
Global Links Corp. GLCO

We had to include GLCO as well, who released a PR today that ties it to another one of our marijuana success stories, EAPH (Easton Pharmaceuticals,Inc.).

LAS VEGAS, March 11, 2014 (GLOBE NEWSWIRE) — Global Links Corp. (GLCO), today announced that the Company’s wholly-owned subsidiary, Hemp Life Today, LLC, has reached an agreement with Easton Pharmaceuticals Inc. (EAPH) to jointly develop and distribute an exclusive line of health and beauty hemp-based products on HempLifeToday.com. >>FULL PR

International Fuel Technology, Inc. IFUE

Here’s another stock with fresh news that we’re going to monitoring this morning:

International Fuel Technology, Inc. (IFT) (IFUE) announced today that its U.K.-based sales group, Environmental Fuel Technology, Inc., (“EFT”) has secured another road transport account. JJ Field & Co Ltd is using DiesoLiFTTM 10, IFT’s proprietary fuel additive formulation that significantly improves the performance of diesel fuel and bio-diesel fuel blends. >> FULL PR


Extended Watchlist:
FCEL, LJPC, CPST, ZBB, SCON, RCON, NVAX

Blue Horseshoe Stocks: FRTD, A Word on the Cannabis Sector

Fortitude Group, Inc. FRTD

We sincerely hope that our readers caught yesterday morning’s report, and read all the way through to the Extended Watchlist where we included FRTD as new cannabis momentum play. The head of steam that the stock began to build on the heels of a recent series of PR’s regarding the company’s entry into the trendy cannabis sector led to continued advances during yesterday’s session.

We saw FRTD touch a low of .0081 before exploding to its high-of-day at .018, a positive intraday move of 122%

FRTD is just the latest in the long line of companies we’ve seen take advantage of the hysterical nature of 2014′s “Green Rush”. While much of the initial fervor we witnessed in December and January has relaxed, don’t expect to stop hearing about this sector anytime soon. In fact, as more and more data comes in, we expect the marijuana business to grow exponentially as each state realizes the financial benefits and caves to economic pressure.

This hypothesis was reinforced by the January tax numbers from Pueblo Country, CO (where the substance is now completely legal) came in. See THIS ARTICLE, which shows that based on their January tax income from marijuana sales, the county stands to increase their annual bugdet by nearly 5%  Colorado is currently serving as an experimental template, and you can be sure that all across the nation, legislators and business people alike are watching intently.

In other news, US banks are quickly clearing hurdles in the way of providing services to pot-related business, and the general sentiment in Washington, is to let this all play out naturally. Even the current administration has made statements which set the table for widespread marijuana reform. Several legislators have petitioned the president to reclassify marijuana, a relatively harmless substance when considering the fact that it now shares a classification with heroin and similarly dangerous drugs.

While many obstacles remain to be navigated, the proverbial ball has begun rolling, and it seems now that there is little that can ultimately stand in the way of progress.


MOST RECENT PR:

ERIE, PA, Feb 24, 2014 (Marketwired via COMTEX) — Fortitude Group, Inc. (OTC: FRTD) CEO Thomas J. Parilla is pleased to announce that on February 22, 2014, the Company executed a Master Agent Agreement with eViteXchange.com. Under the terms of the agreement, Fortitude will offer and facilitate closed-loop transaction processing to legal dispensaries in the medical marijuana industry as well as provide processing for entities in states that have legalized recreational marijuana sales.

Fortitude shall acquire from eViteXhange.com the URL’s 420banc.com and 420cashcard.com. Both domains will be used as a pre-paid platform allowing legal marijuana merchants customers to process purchase transactions using a debit card vs. cash. The private-label card will offer additional rewards and points to the card holders which can be custom designed to fit their individual likes and needs. Fortitude expects to derive approximately $155.00 annual profit per retail card user. The Company intends to launch on March 17, 2014.


Be sure to stay tuned to our reports, and/or check our blog at BlueHorseshoeStocks.com regularly. We’re continuously tracking the cannabis sector as a whole, and often add new plays just like FRTD to the list.


Extended Watchlist:
PLUG, LJPC, DGAZ, FNMA, FMCC, RNN, JCP, IMRS