Blue Horseshoe Stocks: Bottom-Plays & More


Big Board Bottom Plays

Ra Pharmaceuticals, Inc. RARX – The first of a pair of NASDAQ-listed stocks with nice chart setups, RARX has actually been building a solid recovery trend off of its bottom since last week. A couple of Form-4 filings around the same time show two huge $15M blocks purchase by two separate insiders at the stock’s lows.

Meanwhile, there’s still a fair bit of ground to recover from what it has lost in the past ten weeks or so. RARX flirted with its 50DMA yesterday, so we’ll be looking for a break past that point, with indicators on the chart suggesting a fair chance of that happening.


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Liberty Tax, Inc. TAX – We’ve also noted the recent bludgeoning of TAX, which has been in a general downtrend for the better part of five months. In this case, we haven’t reached bottom-bouncer status yet, but more of a bottom-watch. At present, the stock is now heavily oversold, on the heels of the dismissal of its CEO.

With tax season upon us, this is the time of year that we’d expect companies such as TAX to do their highest volume of business, so now seems as good a time as any to track this play for a bottom-bounce.



Advance Auto Parts, Inc. AAP

The last time we talked about AAP was a few months back, and we managed to find some nice gain opportunities within the AAP options chain following the company’s strong quarterly report.

AAP reported quarterly earnings once again this morning, and we thought we’d take another crack at it, by signaling the AAP 03/16 $105-115 Calls for observation.



Extended Watchlist:
NETE, CVRS, LPSN, EQT, KL, CRMD

Blue Horseshoe Stocks: SNAP Rocking & More

Snap, Inc. SNAP

After we signaled our interest in a range of SNAP calls yesterday morming, the stock turned in quite a performance. In fact, SNAP ended up being the top gainer on the NASDAQ for the session.

That activity paved the way for some excellent intraday moves for our designated contracts, the SNAP Weekly $16-17.50 Calls, which all more than

$16 Calls – Range: 1.15-5.00 – Max Gain: 335%
$16.50 Calls – Range: .93-4.38 – Max Gain: 371%
$17 Calls – Range: .50-4.00 – Max Gain: 700%
$17.50 Calls – Range: .45-3.51– Max Gain: 680%

We feel good about a continuation of the same kind of volatility we saw with SNAP yesterday, and will roll up our potential strike prices, and begin to monitor the SNAP Weekly $21-22.50 Calls as we finish out the week.
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Fresh Options Idea:
GrubHub, Inc. GRUB – Weekly $80-85 Calls

Twitter. Inc. TWTR – Weekly $31-33 Calls


Biocept, Inc. BIOC

We want to keep tabs on BIOC after the announcement of a public offering precipitated what we would consider an over-reactionary selloff.

The company raised a sum of roughly $14.8M after offering approximately 32M shares at an exercise price of .45, along with immediately exercise-able warrants to purchase another 32M shares at .50.

We would classify it fall to a new annual low of  .30 yesterday as a kneejerk response, and with the stock being this heavily oversold, we’ll want to put this one on bottom-bounce watch immediately.


Extended Watchlist:
TEUM, SNCR, FOLD, SWN, GCAP, NETE, RIOT, ONTX

Blue Horseshoe Stocks: Options Review & More

Lumentum Holdings Inc. LITE

We noted yesterday morning that LITE was bucking trend of the two-day market bloodbath we witnessed this week. We made it clear that we were interested in the LITE Weekly $44-46 Calls regardless of which way the markets went, and it turned out to be a solid idea.

The markets did of course see a reversal, and LITE did perform well on the day, creating the following gains in our tracked contracts:

$44 Calls – Range: 2.00-8.00 – Max Gain: 300%
$45 Calls – Range: 2.50-6.98 – Max Gain: 179%
$46 Calls – Range: 1.25-6.00 – Max Gain: 380%

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Fresh Options Ideas:

The Walt Disney Co. DIS – Weekly $107-109 Calls
Snap, Inc. SNAP – Weekly $16-17.50 Calls


Quotient Ltd. QTNT

Another stock we went bullish on in yesterday morning’s report, despite coming off the biggest two-day losses for stocks in history, was QTNT.

It boasted a solid bottom setup, and had already exhibited some bottom-bounce activity in the prior session. It also performed well on the day, trading up from a low of 3.36 to a high of 4.39- a respectable intraday run of 31%  We’ll look for the stock to establish a trend of higher highs and higher lows over the next few sessions.


Extended Watchlist:
RIOT, NETE, DRYS, DPW, MARA, CFRX

Blue Horseshoe Stocks: TEUM Update & More

Pareteum Corp. TEUM

The last time we mentioned TEUM was December 8th, shortly after which time the stock was trading for as little as .661. At the time the company had no involvement in the trendy cryptocurrency space.

Flash forward to this week, and an announcement that the company is adding blockchain capability for cryptocurrency support on its global cloud billing platform has the stock soaring to new highs.

TEUM hit 3.15 yesterday, which marks an increase of 377% in less than three weeks’ time. Volume for the day was on the order of roughly five times the monthly average.

Bitcoin itself has been making a nice rebound after the pullback which followed its big run to nearly $20K, and there is no reason to suspect that the push toward blockchain related technologies, both cryptocurrency and otherwise, is just a passing fad.


INSYS Therapeutics, Inc. INSY - Options Recap

We made our interest in the INSY 01/19 $8 & $9 Calls known yesterday morning, and it barely took any time at all for our ideas to come to fruition.

As we were mentioning yesterday, the company recently initiated Phase II trials of its synthetic Cannabidiol (CBD) Oral Solution for Treatment of Refractory Childhood Absence Epilepsy, and the FDA granted Fast Track status to the ‘drug’ for the treatment of a rare genetic disorder (Prader-Willi).

This news allowed for some very nice moves in our designated contracts. The $8 Calls ran from .35-1.00 for a gain of 186%, while the $9′s traded up from .20-.55, trending up 175% on the day.


Ampio Pharmaceuticals, Inc. AMPE

We also want to swing back to remind our readers of last week’s alert on AMPE. We tagged this play seven days ago (four trading days), and saw it trading for as little as 2.57. As of yesterday’s high of 3.55, the stock had thus far risen by 38%

The stock’s peak PPS represented a new annual high, so we’ll be interested to see how the stock performs in blue skies.


Extended Watchlist:
OTIV, FH, NETE, LFIN, GROW, IDXG, WATT, ATNM

Blue Horseshoe Stocks: Kicking Off the Short Week

INSYS Therapeutics, Inc. INSY

This morning we kick off the holiday shortened week, during a time of year that typically sees subdued activity for the markets as a whole, as people spend time with their families, and stay busy with holiday festivities.

We still strive to identify possible opportunities even in this environment, and the first thing to hit our scanner this morning was INSY. INSYS Therapeutics recently initiated Phase II trials of its synthetic Cannabidiol (CBD) Oral Solution for Treatment of Refractory Childhood Absence Epilepsy.

The FDA, we’re learning today, has also granted Fast Track status to INSY for the ‘drug’ for the treatment of Prader-Willi syndrome, a rare and complex genetic disorder. (View PR)

The stock registered its 52-week lows at the beginning of last month, and has been in a general uptrend since, but we’ll be looking for further bullish activity on the heels of this FDA news, both on the stock chart, and in the options chain as a secondary idea. For that, we’ll look to the INSY 01/19 $8 & $9 Calls for opportunities.


DelMar Pharmaceuticals, Inc. DMPI

Speaking of FDA Fast Track designations, we’re looking to DMPI this morning as well, which was granted the status by the FDA for its lead-product cancer treatment, VAL-083.

The chart itself was already set up as a possible bottom play, and despite gapping up considerably on this morning’s news, there is still room to the upside, including a sizable gap that’s been left on the chart since this past spring, the eventual filling of which would spell gains of more than 100% from the current PPS.


Extended Watchlist:
KLXI, EXXI, AEZS, SRAX, IMUC, NETE