Blue Horseshoe Stocks: Options Update, NESV, WTW & More

TripAdvisor, Inc. TRIP – Options Update

Last week we were continuously tracking TRIP options, and that led to several opportunities for multi-bag profits. In addition to a slew of weekly contracts, we repeatedly mentioned our longer-term interest in the 10/30 $85 Calls.

They did manage to generate substantial gains on Wednesday, to the tune of a 120% intraday swing, and Friday’s move was also rather respectable. From a daily low of .93, the 10/30 $85’s made their way to as much as 1.40, which registers as a 51% pop.

We’re anxious to see how this morning’s news of a big extension of TRIP’s partnership with the world’s largest hotel company will be received by the community at large; these contracts could be in line for even further gains, so we’re going to leave them on our radar for the time being.

PARSIPPANY, N.J. and NEEDHAM, Mass., Oct. 19, 2015 (GLOBE NEWSWIRE) — Building on a longstanding relationship, Wyndham Hotel Group, the world’s largest hotel company, and TripAdvisor, the world’s largest travel site*, today announced they have extended their partnership to add the hotel group’s inventory to the TripAdvisor instant booking platform. >> FULL PR

National Energy Services, Inc. NESV

We placed NESV on our extended watchlist on Wednesday as a bottom-watch play, and it too finished the week with strength. After ultimately finding support on Thursday morning at a PPS low of .02, NESV enjoyed two straight sessions of bullish activity as it pushed its way into Friday’s close at a new high of .034; a two-session increase of 70%

Moving forward, we’ll be looking for the stock to continue logging higher highs and higher lows to establish a sustained rebound pattern.

Weight Watchers International, Inc. WTW – Fresh Options Idea

One of the bigger storylines heading into this week will assuredly be the huge spike in WTW stock after an early morning announcement today revealed that Oprah Winfrey will be taking up a 10% stake in the company and joining the board. As a result, the stock has exploded in the premarket, running from the $8 range up past $13.

Whenever a knee-jerk reaction from the investment community causes this type of dramatic rise, especially when no material changes have occurred in the involved company, we always take notice. In cases such as this, it is extremely common for the rapid rise to draw profit-takers out of the woodwork, and therefore we’re going to be watching for a classic dip-and-rip.

Our initial target contracts are going to be the WTW 11/20 $10-13 Calls, which should be in line to perform quite well if the action unfolds as we suspect it may. This is going to be a very interesting play to track as we kick off this new trading week.

Extended Watchlist:

Blue Horseshoe Stocks: PLKD, VAPE Recaps & More

Pleasant Kids, Inc. PLKD

PLKD was one of a couple of stocks from yesterday’s premarket report to produce solid performances during yesterday’s session, leaving the door open for some tidy gains. We had noticed it building momentum in the previous session, and thought it seemed ripe for some further advances.

From an early low of .075, we watched as the stock steadily rose until lunch hour, when it registered a high of .105. That hashes out to a 40% intraday swing, and it came on more than three times the 30-day average volume, continuing the trend of momentum.

Ideally, PLKD would hold the 200DMA of .0599 as support on any upcoming consolidations. Failing that, we would need to see the stock hold at a minimum of .04 in order for us to remain interested.

Vape Holdings, Inc. VAPE

VAPE was the other play to work out nicely yesterday. If you recall we were just mentioning in our morning report that we had witnessed a low of .021 last Tuesday, and that the stock had registered higher highs every day since.

That pattern was sustained yesterday; following a dip to a daily low of .046 early on in the session, VAPE would go on to record a new high of .0685. That marked an intraday swing of 49% and a total increase of 226% over our observed low from last week.

Fresh Options Ideas

We took a little break from formulating options ideas yesterday, but we’ve got a couple of new targets to monitor this morning. Both of the following stocks are gapping up heavily this morning, so we’ll be looking for a dip-and-rip in both cases:

TripAdvisor, Inc. TRIP – For TRIP, provided it can maintain support at or above the 200DMA (77.95) on the dip, we’ll be looking at the Weekly 78.50-82.50 Calls. We’ll also radar the Oct. 30th $85 Calls for a possible longer-term play in the event the stock retraces and fills the gap back to the $92 area.

SanDisk Corp. SNDK – On SNDK, we’re going to be tracking the Weekly $65-68 Calls, and will remain interested if the stock can hold above 64.50.

Extended Watchlist:

Blue Horseshoe Stocks: Options Recaps, Recovery Play & More

Options Recaps

Our closing thoughts in Friday’s premarket report included some options ideas pertaining to our bullish feelings on AAPL and the SPY.

Specifically, we targeted SPY Weekly $193-194.50 Calls, and AAPL Weekly $115 and $116 Calls and included the following warning: “Trading options with a weekly expiration on a Friday carries an inherently elevated risk-reward factor, and is certainly not for the faint-of-heart, or beginning traders.” That would have been an important thing to remember, because the markets did pull back toward the end of the day, eventually rendering those contracts worthless, but not before opportunities for some big intraday gains were presented.

Early trading ranges in our SPY Calls rendered the chance at gains between 70-130% while the AAPL Calls did considerably better. The $115’s made a 293% move from .27-1.06, and the $116’s took the cake with a 520% surge from a nickel up to .31!

Heron Therapeutics, Inc. HRTX Puts

We also had some successful ideas going in the opposite direction; our bearish sentiment on HRTX paid some excellent dividends via the options chain last week, as we were mentioning on Friday. The stock continued to backslide into the close, reaching the $30-range with a daily low of 30.06. From our observed high of 42.25 at the time of our initial alert last Wednesday that’s roughly a 30% loss.

It will be interesting to see if this morning’s PR from HRTX affects the dynamics of the chart.

Clean Coal Technologies, Inc. CCTC

We also want to make another quick mention of CCTC, which has continually set new highs for us in the month of September.

We tracked the stock to some more nice gains last week, as it made a healthy intraday move of 21% from .72 to .87. That extends the total range we’ve observed following our initial alerts earlier this month from a low of .36 to Friday’s high; a total move of 142% in just two weeks’ time.

Totally Hemp Crazy, Inc. THCZ

We tagged this old familiar play on Friday for the first time since spring, and it turned out to be fortuitous timing as the stock made a noteworthy intraday jump.  THCZ traded from a low of .09 up as high as .1189, a 32% spike.

We’ll begin to pay closer attention to this and other cannabis-related stocks as election time draws nearer and the issue of marijuana is once again tested on ballots. We’ll be open to the possibility of new waves of attention for the sector as a whole, and be sure to keep our ear to the tracks for relevant developments.

Pier 1 Imports, Inc. PIR

A failure to beat Wall Street’s expectations on both guidance and earnings led PIR to gap down on Friday, though the dip wasn’t sustained. After seeing a low of 6.84 the stock did manage to recover quite a bit of ground into a 7.61 close. This transpired at a time when the chart was already fairly oversold, and that effect has been magnified as we point out on the chart snapshot below.

We’re going to have PIR on an extended-term recovery watch. A return to even the 50DMA would spell significant gains from the current juncture.

Extended Watchlist: