Blue Horseshoe Stocks: GIS, FDX Options

Options Updates

The Michaels Companies, Inc. MIK – One of our fresh ideas for yesterday morning’s premarket report was a post-earnings target of the MIK 04/18 $12.50 Calls combined with a solid technical setup as a bottom-bounce play.

The stock turned in a very solid performance on the day, coming up just shy of its 50DMA, and that produced a significant gain opportunity for the contract set we designated. The $12.50 Calls traded up of a low of .60, and hit 1.35, marking an intraday run of 125% We’ll want to continue to reserve a spot on our radar for this play, and watch for the stock to continue to establish higher lows and higher highs off of its recent 52-week lows.
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StoneCo Inc STNE - We also had the STNE 04/18 $37.50 & $39 Calls highlighted in yesterday’s report, and while we didn’t see quite the same intensity of activity as the above-mentioned play, that pair of contracts did get off to a good start, with nearly a full month remaining until expiration.

The $37.50′s traded in a range from 4.60-6.20 for a 35% move, and the $39′s went from 4.20-5.00 (+19%). We’ll continue tracking these as well.
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Fresh Post-Earnings Ideas:

FedEx Corp. FDX Weekly $172.50-170 Puts
General Mills, Inc. GIS 04/18 $47.50-50 Calls


Extended Watchlist:
SCNA, NAVB, TYHT, NVRO, PIR

Blue Horseshoe Stocks: MIK Options & More

SPDR S&P500 ETF (SPY) – Recap

We went bullish on the SPY in our premarket report yesterday, and thanks to two distinct intraday pushes for the markets, there were opportunities across the board for our highlighted contracts throughout the session.

Those targets were the daily SPY 03/18 $281-282 Calls, and we saw significant moves from all three. The $281.50 Calls traded in a range from .34-1.06 for an overall upswing of 212% while the $282′s traded up from .15 to .58, a gain of 287% (We mistakenly lost exact data for the $281 calls, but the gain opportunities were very similar to those of the other two strike points.) 


The Michaels Companies, Inc. MIK

We also want to signal a set of contracts on MIK, which was the one listing on this morning’s earnings calendar that jumped out to us the most. Michaels posted an earnings beat, but also happens to be trading near its annual lows.

We’re going to approach this like we would any other play with bottom-bouncer written all over it, by signaling some longer-term calls to give ourselves some extra time to see the recovery play out. We’re going to radar the MIK 04/18 $12.50 Calls and monitor their activity in the days and weeks ahead.
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Bonus Idea:
STNE 04/18 $37.50-39 Calls


Extended Watchlist:
FPAY, CPST, INSY, TROX, CPST, NCTY, SDRL, CREG, LGCY, AKER, PIR

Blue Horseshoe Stocks: DG Recap & More

Dollar General Corp. DG

We selected a wide range of puts in the DG chain on Tuesday morning, the DG Weekly $109-103 Puts following the company’s earnings release, wherein it lowered its outlook for the year. Despite a sales beat, shares slid considerably. With the help of an overall market downtrend in which the Dow took an 800 point hit, every set of contracts we selected made multi-bag gains.

$109 Puts – Range: 2.20-6.80 - Max Gain: 209%
$108 Puts – Range: 1.76-5.80 – Max Gain: 230%
$107 Puts – Range: 1.25-4.40 - Max Gain: 252%
$106 Puts – Range: .88-4.18 - Max Gain: 375%
$105 Puts – Range: .55-3.30 – Max Gain: 500%
$104 Puts – Range: .40-2.53 - Max Gain: 532%
$103 Puts – Range: .30-1.90 – Max Gain: 533%
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Fresh Idea:
MIK Weekly $15 & 17.50 Calls


Aphria, Inc. APHA

We’ve had an eye on Aphria, and indeed the whole Canadian cannabis market, for years.  Having previously been traded under the symbol APHQF on the OTC Markets, the Canadian cannabis company now trades on the NYSE and bills itself as a drug manufacturer in the healthcare industry.

As a result of allegations against the company, the stock has taken a severe beating in recent sessions. We’re going to begin to observe more closely as a potential bottom bounce play in the days and weeks ahead, as it has reached the point of being heavily oversold with a huge short interest. We’ll want to be hanging around when the shorts start to get squeezed.


Extended Watchlist:
SGSI, PSTG, TVIX, OZM, AAC, WKHS, XSPA, DCIX, MDCA

Blue Horseshoe Stocks: Recaps, Fresh Ideas & More

Chipotle Mexican Grill, Inc. CMG 

Our extreme success on the options front continues. We cited the CMG chart setup as the reason for wanting to have our eye on the CMG Weekly $297.50-305 Calls yesterday morning, and were very pleased with the intraday performance we witnessed. It also didn’t hurt that the founder stepped down to make room for a new CEO, which went over well with the investment community.

Regardless of which strike price was chosen, there were some serious multi-bag single-session gains there for the taking:

$297.50 Calls – Range: 1.50-8.10 – Max Gain: 440%
$300 Calls – Range: 1.15-6.50 – Max Gain: 465%
$302.50 Calls – Range: .77-5.00 – Max Gain: 549%
$305 Calls – Range: .54-3.83 – Max Gain: 609%

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Fresh Idea:

The Kroger Co. KR – We want to signal some options to watch for Kroger as well after the company tidily topped 3Q forecasts with this morning’s earnings report. We’re going to be looking to the KR Weekly 25.50-27.50 Calls to try to take advantage of the conditions. We’re also anxious to listen in on the conference call slated for later this morning.



Crypto Recaps

Whatever you refer to it as, virtual currency, digital currency, or cryptocurrency, the rise of Bitcoin has fueled a hugely popular market sector, and caused many small companies to shift focus to attempt to capitalize on what has become pure hysteria.  Bitcoin breached $11,300 yesterday, and as a result, some of the BTC-related plays we’ve tagged have enjoyed really nice moves on the chart.

Integrated Ventures, Inc. INTV – Having recently lauched its bitcoin mining efforts, INTV is a stock that we slated for observation in our watchlist yesterday morning. The stock responded with a solid run from .551 to .97, marking an intraday pop of 76% on more than ten times its monthly average volume.

Peer to Peer Network PTOP - This one appeared in our watchlist earlier this month on the 7th. We came early to the party on this one, but with Bitcoin setting its new all-time high once again yesterday, it woke up in a big way. That included a serious intraday move of 1780% as PTOP traded from a low of .0005-.0094. It represented the stock’s highest price in three years, and a new all time record high volume, with over 400 million shares changing hands on the day.


Extended Watchlist:
RAD, MYSZ, RYB, MIK, ADMP, BOSC, IBIO, SNAP