Blue Horseshoe Stocks: SPY Options & More

SPDR S&P 500 ETF Trust – SPY

We’re projecting a solid day for the markets as a whole to close out the week as positive jobs numbers just hit, and usually in these cases, we like to use the SPY to get in on the action in the short term. We’re going to designate the SPY Weekly $247-248.50 Calls* as our contracts of interest.

Not only did hiring stay strong while jobless claims fell , but non-farm payroll gains exceeded expectations by a considerable margin, foreshadowing strength in US labor. To boot, the June Trade Balance figures came in and roughly $1.3B was shaved off of the expected trade deficit. All in all, these are several contributing factors that could certainly energize today’s session, and produce considerable intraday gain opportunities in our highlighted options.


GoPro, Inc. GPRO

While we’re thinking of potential quick-strike options plays, we’ve got to take a look at GPRO, which is gapping up in the premarket this morning on the heels of its Q2 earnings beat, and strong outlook. We’ve been familiar with GRPO options in the past, although it has been quite some time.

Prior to these bolstered figures as well as an analyst upgrade from Morgan Stanley this week, GPRO shares had been somewhat stuck in the mud for most of the summer so far. An extended rebound could be in the cards, but for now, we’ll just track today’s activity on the GPRO Weekly $9-10 Calls*.

*We don’t include mentions of weekly options contracts on a Friday without explicitly warning our readers every single time. Trading weekly options at the end of the week is an exceedingly risky proposition that should never be attempted by beginning or novice traders!

Extended Watchlist:

HEMP, BBDA, BCAP & Extended Watchlist

Hemp, Inc. HEMP

After being as low as .027 on Tuesday following our medical marijuana round-up, HEMP reached, and closed at a high of .041 on Thursday, gaining 52% on the week. Whenever a stock closes at the high of day we are on the lookout for momentum to continue into the following session. Granted that today is a Friday, we are going to want to leave this play on our watchlist into next week.On the chart below, we can see that the previous high (Feb.) of .05 is going to be our next key level of resistance. A break above that point, could push HEMP into Blue Sky Breakout mode, and we surely don’t want to miss out on that.

Additionally, the RSI is in the power zone, the volume and momentum has really been picking up, and the PPO recently had a crossover. We can now see that the lines are really starting to diverge.


Bebida Beverage Co. BBDA

BBDA has been on our watchlist for a while now (July 6th), logging some monster gains in the process. The low during our time of coverage was .0015, and running as high as .019, marking a whopping 1226% gain.

The stock has been struggling to maintain an uptrend since it peaked at its high. There have been a few small bounces, but nothing we’d call sustainable.

We have a descending wedge setup happening on the chart, and once it breaks out of that pattern, we could be in for the next round of gains from BBDA.

The RSI looks ready to come off of being oversold, while the PPO is pinching, getting ready for a cross. The histogram  appears ready to flip up to the bullish side as well.

Yesterday we saw a textbook bounce off of the 100DMA (.0061), only to run into resistance at the 20DMA (.0076). The stock closed at .0065. The next resistance points are the 20DMA of .0076 and the 50DMA at .0101.

A break here could send us clear to a penny and a half, or even re-test the previous high at .019, bringing us gains of 100-200%


Baron Capital Enterprise, Inc. BCAP

We re-alerted BCAP last Friday. We wanted to congratulate members who caught yesterday’s bounce. BCAP held support at .0007 this week just as we had hoped, and made its run to .0012.

Extended Watchlist: