Blue Horseshoe Stocks: More Options Success

SPDR S&P 500 ETF (SPY) – Options Recap
Our options calls we made for the SPY on Friday morning were very good to us, and were an excellent way to close out what was ultimately a very successful trading week.

We put a flag up on the SPY Weekly $274.50-277 Calls after seeing the markets stabilize last midweek, following a couple of turbulent sessions as a result of Trump administrations newly announced tariffs. Things looked ripe for a rebound on Friday and that’s just what we got, with the SPY turning in a bullish performance from start to finish.

There were six sets of contracts contained in our designated range, and regardless of which strike price was chosen, intraday gains were on the table, ranging from very good to absolutely fantastic.

$272 Calls – Range: 1.30-4.31 – Max Gain: 232%
$272.50 Calls – Range:  .80-3.90 – Max Gain: 387%
$273 Calls – Range: .68-3.25 – Max Gain: 378%
$273.50 Calls – Range: .46-2.90 – Max Gain: 530%
$273 Calls – Range: .26-2.45 – Max Gain: 842%
$273.50 Calls – Range: .10-1.90 – Max Gain: 1800%

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Burlington Stores, Inc. BURL – Speaking of multi-bag options winners, we slated the  BURL 03/16 $120 & $125 Calls for observation on Thursday morning, and those finished out the week with stregth as well. The $120 Calls ran from 4.04-8.50, for an intraday rip of 110%, while the $125 nearly doubled that performance with a 212% run from 1.35-4.21.


Lumentum Holdings, Inc. LITE

We want to swing back around to recap the recent performance of LITE as well. Since our alert on the stock on February 7th, at which time the stock was trading for as little as 52.20/share, LITE has made considerable and steady upward progress.

On Friday it hit a new high of 69.25, marking a move of 33% in less than five weeks. That is quite a feat for a stock that started out above $50!

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Fresh Options Idea:

Valeant Pharma International, Inc. VRX -We’re going to formulate a short and longer-term options idea for VRX, which is looking like it could be ready for a bottom bounce. Last week, an insider buy to the tune of more than $108.8M came in as well, which just reinforces our assumption that for now the stock has gone as low as it’s going to go.

We’ll be looking at the VRX Weekly $15 & $15.50 Calls, as well as the 04/13 $16 & $16.50 Calls.


Extended Watchlist:
ADMS, AKER, CPST, KANG, MRTX, NPTN, ENRJ

Blue Horseshoe Stocks: AAP, NPTN & More

Advance Auto Parts AAP – Options

We have a confluence of favorable conditions to look AAP for potential options trades as we kick off a new trading week this morning. As of the end of last week, the stock was trading very near to its annual lows , and has a significant gap on the chart to the upside. Combine that with the company’s strong earnings report including a solid beat on profits, and we’re interested to see where this one will take us.

To try and take advantage of the present scenario, we’re going to tag both a shart and a longer term set of ideas, in the event that the stock sees an extended recovery, as the the chart setup suggests it might. We’ll be looking to AAP Weekly $85-95 Calls, and the 01/19 $95-105 Calls.


NeoPhotonics Corp. NPTN

We also would like to go over the move made by NPTN after we signaled it for observation last Monday morning. Subsequent to that point we ‘ve witnessed a respectable run from a low of    5.10 to a high of 6.66, a gain of 31%

We saw the stock record higher lows every single day last week, and will look for that trend to continue. If the stock can break the double top formation that’s currently on the chart, we could be in line to see much more significant gains.


Extended Watchlist:
MOSY, ONP, REDU, ITUS, TCO, TGTX

Blue Horseshoe Stocks: SNAP Review & More

Snap, Inc. SNAP – Options Idea

After a mixed bag of news yesterday that included a 12% stake being bought in SNAP by China’s Tencent Holdings, and a poor quarterly earnings report, we signaled our interest in tracking the  SNAP Weekly $15-14 Puts for quick strike trades.

It turned out to be a good idea as the stock gapped down and continued to plunge, sending our observed contracts hurtling upward.

$15 Puts – Range: 1.10-2.85 – Max Gain: 159%
$14.50 Puts – Range: .76-2.30 – Max Gain: 203%
$14 Puts – Range: .50-1.89 – Max Gain: 278%


Valeant Pharmaceuticals International, Inc. VRX – Options Update

We began tracking the VRX Weekly $13-14 Calls on Tuesday morning, and saw some pretty nice moves out of them early on in that session.

With the help of another, even more bullish session we were able to see our observed ranges on the specified contracts extended by a considerable margin. The following table represents Tuesday’s lows to yesterday’s highs, and the two-day, multi-bag gains that were possible.

$13 Calls – Range: .82-2.28 – Max Gain: 178%
$13.50 Calls – Range: .52-1.75 – Max Gain: 237%
$14 Calls – Range: .28-1.30 – Max Gain: 364%


Fresh Options Idea: AT&T, Inc. T

We’ve had our eye on AT&T for awhile as it was recently searching out a bottom, waiting for the proper time to pounce with a potential recovery play. Over the past couple of sessions, the stock has establish a solid base of support and begun to try to come up off of those lows, which are the lowest of the year so far.

We’re going to be looking after the T 01/19 $34-36 Calls for a longer-term rebound play, in the days and weeks ahead.


Extended Watchlist:
NPTN, KBSF, UUUU, COTY, DNN, PRTY, SAGE, ENRJ