MARK | Blue Horseshoe Stocks

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

Blue Horseshoe Stocks: LULU Recap & More

Lululemon Athletica Inc. LULU – Update

We signaled a range of calls in the LULU options chain in the wake of the company’s earnings beat yesterday morning, and we were met with some fantastic opportunities at huge single-session gains.

Every one of the five sets of contracts, the LULU Weekly $83-85 Calls, produced a shot at double-bag gains on the day, which were as follows:

$83 Calls – Range: 1.60-4.50 – Max Gain: 181%
$83.50 Calls – Range: 1.25-4.15 – Max Gain: 232%
$84 Calls – Range: 1.20-3.80– Max Gain: 217%
$84.50 Calls – Range: 1.00-2.90 – Max Gain: 190%
$85 Calls – Range: .82-3.24 – Max Gain: 295%

With such solid moves in just one day, LULU doesn’t owe us anything, but we’re still going to roll up our potential strike range and monitor the Weekly $85-86 Calls* as we finish out this short trading week.
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Fresh Options Idea:
Constellation Brands, Inc. STZ Weekly $222.50-230 Calls*

*Do NOT trade weekly calls on the last day of the week unless you are an expert level trader!

Elev8 Brands, Inc. VATE

As you can see from our commentary on the annotated chart below, we’re interested in the setup of the VATE chart at the moment. The stock just began to consolidate off of a sizable surge that had persisted for most of this month.

We’re going to put it on bottom watch, and look for an eventual rebound in the event it can maintain support at or above the .05-mark.

Extended Watchlist:
AYTU, AQMS, ESES, PTCT, CPRX, MARK, MYSZ. RAS

Blue Horseshoe Stocks: Bottom-Watch Play & More

Eastman Kodak Co. KODK – Update

It was a few weeks ago on the 12th of January that we signaled a range of puts in the Kodak options chain. The company had seen a considerable surge in price after announcing its own unique crypto-coin, but we took a skeptical position as to its sustainability.

We highlighted the KODK 02/16 $15 & $12.50 Puts.
and wanted to come back around to it this morning to check out the gains that were made possible as the stock has predictably failed to maintain its uptrend, and instead has fallen significantly since our alert.

As a result, the $15 Puts have run from 4.70-8.80 for an 87% pop, while the $12.50’s traded from a low of 2.60 up to 6.50, a gain of 150%

Auris Medical Holding Inc. EARS

We lso want to add a quick bottom watch play in EARS to kick off the week this morning.

It’s got multiple gaps to fill to the upside and is currently considerably oversold. We’ll want to watch this stock for a potential rebound in the days and weeks ahead.

Extended Watchlist:
JAGX, MARK, USLV, BUR, GERN, XNET