Tag: POWR

Blue Horseshoe Stocks: Options Trading Ideas

Intuitive Surgical, Inc. ISRG

When we first tagged ISRG back on May 6th, the stock was just making its way down to its 3-year low, which came a couple of sessions later at 346.46. From that point, we saw a powerful uptrend that carried the stock back up to 426.43 (Jun 27th). It allowed us to play the options chain quite effectively over the course of several weeks.

Following that major run, we’ve seen some consolidation, coming back to the $380-level just recently, and currently, the stock is pressing new highs in premarket trading, to the tune of $444.

We did mention a long-term interest in the Aug.-Oct. $420-440 Calls back in June, and that insight is now paying off bigtime.

Petroleo Brasiliero S.A. PBR -Options

When we looked in on PBR on Monday, we were patting ourselves on the back for some excellent picks of last week’s $16.50 and $17 Weekly Calls, mentioning that we’d stick with the same ideas to begin this week.

It has turned out to be another great call on our part; just look at the action in those weekly calls during yesterday’s session:

The 16.50’s ran from .25 to 1.07, a possible intraweek gain of up to 328% while the $17 Calls surged from .13 up to .75, a 477% move. This was just one of many, many times that we’ve used the PBR options chain to our extreme advantage this year.

New Options-Trading Ideas

As our regulars have undoubtedly noticed, a good portion of our focus these days goes to options trading. We’ve become quite adept at spotting trends and using them to our benefit, and we’ve got a couple of new potential plays to add to the mix this morning.

Alcoa, Inc. AA

Alcoa has been building one beast of a chart over the past few months, and there looks to be no end in sight. We may be able to use this strong uptrend to leverage ourselves some nice gains out of AA Options. Specifically, the 08/16 $17 Calls, which closed at .44 yesterday after having traded in a range from .25-.48 on the day.

Yum! Brands, Inc. YUM

YUM got beat up recently, falling off a cliff at the $83-area, and yesterday was the first session since that the stock has found some support, down around $74. Our options idea here is to potentially utilize the rebound for some quick-strike gains. We’ll be monitoring the 08/08 $75 Calls, which closed at .82 yesterday.

Extended Watchlist:
DRL, DARA, TLM, PLUG, FCEL, POWR, PBYI

Blue Horseshoe Stocks: FB, TWTR, POWR, ONVO & More

Facebook, Inc.  FB
& Twitter, Inc. TWTR

After we included FB and TWTR in our extended watchlist yesterday, the two social media giants both made positive moves on the day. The uptrends made trading in the options chains of each of these plays a lucrative venture for the session.

For example, looking at some of the options contracts that were relatively close to the money, FB $66 calls went from .48-1.64, and $67 Calls were as low as .21 and closed at .86. TWTR $39 Calls were also moving, trading in a range from  .24 to .90. No matter what big-board stock you’re looking at options in, the heaviest action will usually be close to the money (i.e. Current market price as it relates to the “strike-price” of a given contract)

PowerSecure International, Inc. POWR

POWR was a feature in yesterday’s report, wherein we tagged the stock for its potential to fill in a huge gap on its chart that goes all the way to the $18-range. We began to see the gap beginning to fill as POWR would make a modest intraday run to a high of 9.79.

We’re going to leave this play on our watchlist as we head into the week’s end and beyond, as it still has much ground to recover. A return to pre-gap levels on the chart would still equate to gains in excess of 100% from here, and there isn’t a whole lot in the way of obvious resistance until we hit the 50DMA (12.27).

On the options side of things, we’re particularly interested in the August $10 Calls (Closed at .75 yesterday), because if POWR can test that 50DMA by 08/16, we could be looking at triple-bag gains from those contracts.

Organovo Holdings, Inc. ONVO

We placed ONVO on watch in Tuesday’s report, as we noticed that unlike some of the other players in the 3D printing industry, it had yet to show a significant uptrend on the chart, and we thought it might be due to make a move.

It appears that alert was quite timely, as the stock is beginning to rear its head,  gapping up today to the tune of 13% in premarket trading. Key resistance at the 200DMA (8.07) has been broken, and if we can hold above that mark, the next areas of resistance crop up at 8.65, and 9.35.

Comments on Today’s GoPro IPO

A large portion of the buzz on the Street today is emanating from the highly-anticipated GoPro Initial Price Offering, and we’re going to take the same stance we always take in these situations.

Our M/O when a big IPO comes out has always been to wait in the wings until we can gauge the price action. Once we get a good feel for the nature of the beast, it’s then that we’ll step in and utilize the trends to our best advantage in the options chain. This strategy served us well on both the FB and TWTR IPO’s, so we’ll continue to use it here.

Extended Watchlist:
AA, ROYL, DRWI, AGEN, UNXL

Blue Horseshoe Stocks: NSPH, DLIA, POWR

Nanosphere, Inc.  NSPH

NSPH is the first of a few new plays that we pulled off of our scanner this morning. The stock made a big move on Monday after it was learned that Nanoshpere had landed a substantial contract. Yesterday the company received FDA clearance on one of its products (Verigene(R) Enteric Pathogens Test), but could not maintain a steady run as a result of an overall dip in the markets.

The stock is, however, gapping up again this morning. We may want to keep an eye peeled for this play, as it is still trading near a relative bottom at its current price range; the stock was trading at 2.50 and above as recently as March.

dELIA*s, Inc. DLIA

Next up, we have DLIA, which popped up on our scanner as something of a momentum play. The stock is coming off of a recent bottom, and has been exhibiting the signs of a bullish run. A quick review of the chart shows that DLIA has made higher lows and higher highs for the last three consecutive trading sessions, and continued to build up a head of steam yesterday, pushing through its 50DMA.

We’re seeing a sizable gap-up this morning as well, and as you can see the chart still looks extremely bullish. We have an RSI which looks like its just about to punch into the power zone, and a MACD which recently underwent a bullish cross. If DLIA can now manage to break through the 200DMA (.98), it appears to have a pretty clear path on up to the 1.25-1.35 range.

PowerSecure International, Inc. POWR

Last but not least we have POWR, which is another morning gapper. The stock fell off a cliff on worse-than-expected earnings back in early May. We are now seeing some of that gap being filled, and want to keep a close watch over this play for the remainder of the week at the very least.

The gap on the chart goes all the way up to more than $18, so a return to previous levels would spell gains of more than 100% Even if the stock can manage to get back above its 50DMA (Currently 12.49), it would yield profits in excess of 40% over present prices.

Today the company announced it had successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service as outlined in the PR below.

WAKE FOREST, N.C., June 25, 2014 /PRNewswire/ — PowerSecure International, Inc. (POWR) today announced that it has successfully modified the service arrangement with one of its major utility customers to improve the terms of its ongoing service.  The modifications include adjustments to pricing, work assignments, and expected improvements in the ongoing scope of work. >> FULL PR


Extended Watchlist:
AERI, AMPE, BGMD, SYN, FB, TWTR