Blue Horseshoe Stocks: OPK, CAT & More

Opko Health, Inc. OPK

We’re going to start things off this morning by highlighting a potential bottom-bounce play in OPK which is presently boasting a ripening chart setup.

Not only that, but we’ve got a Form-4 alert on this one as well, with CEO Phillip Frost purchasing 100,000 shares yesterday at 4.89. We generally take insider buying at a bottom, especially a strong double bottom like OPK is exhibiting, as a sign that a more sustained recovery could be on the way.

We’ll place this stock on watch in the days and weeks ahead as well as keep an eye on an options idea, the OPK 03/02 $5-6 Calls.

Caterpillar Inc. CAT

Speaking of options ideas, we wanted to submit one for CAT as well in the wake of its premarket earnings release, wherein the company reported a 35% sales increase and a solid beat on profits.

The stock is gapping up into blue skies this morning in the $175 range, so we’ll be looking for a classic early dip-and-rip, and tracking the CAT Weekly $170-175 Calls for potential quick-strike trades.

Extended Watchlist:

Blue Horseshoe Stocks: WFM Followup, ZSAN & More

Whole Foods Market, Inc. WFM – Options Update

Our primary focus for yesterday morning’s premarket report was our running options idea from last week. We were mentioning that the WFM 02/17 $30 and 30.50 Calls had begun to heat up, and we didn’t want to miss out on the activity that seemed ready to kick our idea into effect.

Our assumptions turned out to be accurate, with WFM stringing on another good session performance. The $30 Calls traded up from a low of .54 to .90 (+66%), while the $30.50′s made their way from .20-.42 (+110%).

We also mentioned that a break of the 50DMA at 30.76 for WFM would prompt us to look at contracts with a higher strike price and later expiration, the WFM 02/24 $31 Calls. We did indeed witness a breach of that price point toward the end of the session, and those calls came into play as well, running from 20-.35 for a chance at a nice 75% gain.

Should the solid uptrend WFM has been putting together continue into future sessions, these could be an ongoing item of interest for us.

Zosano Pharma Corp. ZSAN

ZSAN is a play we highlighted on Monday after the company reported that in its ZOTRIP pivotal efficacy study, its M207 transdermal migraine therapy patch met both primary, as well as secondary endpoints.

We mentioned that not only were we going to experience the effect of positive study data, but a technically ripening chart as well, leading us to put the stock on high alert in coming sessions.

It was a good decision, as the stock has really gained momentum this week, putting together some solid sessions. In fact, yesterday the stock closed as the NASDAQ’s top gainer of the day. We’ve watched as ZSAN has traded up from a low of 1.65 to yesterday’s new high of 3.49, representing an intraweek upswing of 112% Cheers to those of our readers who came along for the ride!

Opko Health, Inc. OPK

We put OPK on bottom watch earlier this month, and after a few sessions of further consolidation, the past four trading days have shown some convincing bottom-bounce action.

The stock ultimately found support at the 7.99-level last week, from which it has logged five straight sessions of higher highs and higher lows, reaching 8.66 yesterday. While that action only equates to an 8% increase, it’s the massive gap on the chart to the upside from just under $10 to just over $11.50. We’ll look for the stock to continue to build gradually and maintain the current trend in hopes of seeing a run toward a gap-fill.


Kate Spade & Co. KATE Weekly $20 and $21 Calls

Extended Watchlist:

Blue Horseshoe Stocks: Form-4 Alert, AAPL & More

 Apple, Inc. AAPL – Options

We used to trade AAPL options like they were going out of style, but have not actually talked about the stock in roughly six months.

This morning, on the heels of yesterday’s post-market earnings beat which featured better-than-expected iPhone sales, we’re going to be coming back to AAPL with a short-term options idea.

Having traded as high as 127.67 in the premarket, we’re going to be looking for a dip-and-rip off of this gap-up once the session commences. We’re going to be focused on the AAPL Weekly $125-127 Calls provided the expected early dip doesn’t take the stock lower than the $125-mark.

Opko Health, Inc. OPK

OPK is a familiar stock to us, albeit one that we haven’t touched upon in awhile. Recently, it has been under heavy consolidation, beginning with a large gap-down from the mid-$11 to the $10 area in late December, and persisting throughout last month.

We’ve also noticed a series of Form-4 filings which show the CEO was soaking up shares at these lows all last week and into Monday, to the tune of more than $300K worth purchased at market prices in just a few days.

We like to follow plays where directors are actively supporting their stock with confidence buys like those, so we’re going to be keeping a closer eye on OPK in sessions to come, as a rebound may be forthcoming at any time.

Tuesday’s Honorable Mentions

Cardinal Energy Group, Inc. CEGX – We placed CEGX in yesterday morning’s extended watchlist and were pleased with the stock’s modest, yet noteworthy intraday performance.

The stock traded in a range from .0026 to .0038, marking an intraday pop of 46% There was a consolidation into the close, and the stock failed to hold at least 50% of its daily advance, however, with the volatility exhibited in the past couple of sessions, we’ll definitely want to keep an eye on CEGX as we cruise through mid-week.

Players Network PNTV – We were just mentioning our coverage of PNTV on Monday, and the 400%+ gains we’d observed recently. What has followed is a solid couple of sessions that has the stock well on its way to an impressive intraweek performance.

Monday’s low came in at .028, and yesterday it reached as high as .04, marking a two-day swing of 30% We’ll be looking for the stock to continue posting higher highs and higher lows today, which would solidify PNTV’s multi-day runner status.

Extended Watchlist:

Blue Horseshoe Stocks: LEXG Run Continues & More

Lithium Exploration Group, Inc. LEXG

LEXG came out a winner once again yesterday, even as we were mentioning how many quality opportunities the stock has brought us in the past, in our morning report.

On big time volume in the neighborhood of 7.5X the monthly average. LEXG broke out to new highs, trading in an impressive daily range from .0044 to .0112, for a 155% rip.

That’s small potatoes, however, compared to the overall move we’ve witnessed since our alert during the week between Christmas and the New Year. At that time the stock saw a low of .0013, which means we’ve seen a monstrous run of 862% out of LEXG in just over three weeks’ time!

Opko Health, Inc. OPK

We’re looking at OPK as a potential bottom-play today from a technical perspective, after noticing several attractive features on the chart.

As you can see from the included snapshot, the chart is currently boasting an enormous gap to the upside, with a recent track record of making volatile swings and gap-fills. Not to mention an oversold indication from the RSI and a rapidly ripening MACD.

Additionally, we’ve got a Form-4 alert for OPK; the CEO picked up a sizable tranche of shares near yesterday’s lows (>>View Filing)

We’re going to want to keep this one on our radar for a possible rebound in the days and weeks ahead.

Extended Watchlist

Blue Horseshoe Stocks: FRO, OPK, WLGC & More

Frontline, Ltd. FRO

At the beginning of this month when we first began looking at FRO, the stock was trading at a low of 1.33. It took barely a week for the stock to start inching its way up, and it has continued to do so up to the present.

By the time we re-flagged it in Friday’s morning report, it had already cracked the $2.00-mark, and we did mention that the level of momentum was primed to allow for further opportunities.

This morning FRO continues to push the envelope, setting a new high in premarket trading action. This morning’s top figure of 2.64 puts us just slightly short of double-bagger status, having shown us an increase of 98% from the lows we observed the week before last.

It can be argued that the bolstering of activity seen on FRO (and other shipping plays) is due to the continuing fall of oil prices which translates to savings at the pump.

Opko Health, Inc. OPK

OPK is catching our attention in the premarket as well, as a result of an agreement announced this morning with pharma-giant Pfizer to develop and commercialize one of Opko’s highly promising products which combats Growth Hormone deficiency. Peruse the following PR to find out more; the development certainly lands OPK a spot on our watchlist to kick off the week.

In instances like these where a play is sent through the roof on substantial news, we look for the resulting profit-taking to pull the stock back, where we wait to take advantage of a possible dip-and-rip scenario.

OPKO Health, Inc. (OPK) and Pfizer Inc. (PFE) announced today that they have entered into a worldwide agreement for the development and commercialization of OPKO’s long-acting hGH-CTP for the treatment of growth hormone deficiency (GHD)… hGH-CTP has the potential to reduce the required dosing frequency of human growth hormone to a single weekly injection from the current standard of one injection per day. >> FULL PR

WordLogic Corp. WLGC

Speaking of significant news, WLGC forces its way into our vernacular this morning on the heels of the announcement that the company will be teaming up with energy-leviathan General Electric (GE) in order to “monetize specific patented intellectual property in General Electric’s portfolio.”

With such a high-profile bedfellow, WLGC will instantly gain new recognition, and it will be very interesting to see how that translates to the chart.

Notable Gainers from Friday’s Extended Watchlist

Oncothyreon, Inc. ONTYRange: 1.69-2.05   Gain: 21%

Organovo Holdings, Inc. ONVORange: 5.82-6.50  Gain: 11%

Extended Watchlist: