Blue Horseshoe Stocks: Stellar Options Calls & More

Valeant Pharmaceuticals, Inc. VRX – Options Recap

In yesterday morning’s premarket report, we noted that VRX had been coming off of recent annual lows, had a beat on earnings, and was up considerably in early trading.

Our exact words were “We want to formulate an options idea to coincide with the increased activity and expected price action in a stock in this position. We’ve seen this sort of pattern many times before, and if things play out similarly here, the VRX Weekly $10.50-12 Calls could be in line to see considerable gains.” Things did play out similarly. We did indeed see considerable gains, and quite frankly, that’s an understatement.

As VRX itself traded from 10.57 to 12.43, our targeted options calls posted astronomical moves on the day, giving traders a chance to grab a piece of the following gains:

$10.50 Calls – Range: .40-.1.92 – Max Gain: 380%
$11 Calls – Range: .18-1.50 – Max Gain: 733%
$11.50 Calls – Range: .08-1.05 – Max Gain: 1212%
$12 Calls – Range: .02-.74 – Max Gain: 3600%

This wasn’t even the first percentage gain in the thousands that we’ve rooted out in the past week. The SPY Weekly $238-50-239.50 Calls that we highlighted in Friday morning’s premarket report yielded a 4600% gainer on that day. Both of these plays serve as perfect examples of why we don’t limit our daily reports to stocks alone.

Cleantech Solutions International, Inc. CLNT

We did have a very nice play on the stock side of things as well yesterday, after we tagged CLNT in our extended watchlist. It ended up making a solid early push from a low of 4.11, and ran as high as 6.99 inside the first hour of trading.

That was good for intraday gains of up to 70% which we feel is quite good for a stock in this price range. CLNT is pulling back in premarket, but we will remain interested in possible bounce activity in the event that it holds support above yesterday’s swing low.

Proteon Therapeutics, Inc. PRTO

There’s an interesting situation unfolding with PRTO that warrants placing the stock on watch today. Despite reporting Q1 losses of $6.5M, the stock is gapping up heavily on the strength of a concurrent announcement. It pertains to the fact that the company’s investigatory treatment, vonapanitase, has received Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA).

Whenever such FDA news hits wires the resultant activity on the chart is sure to be interesting, which is evidenced by the the fact that traders are ignoring the disappointing quarterly figures that coincided with this event. Thus we are eager to track PRTO as we head through midweek.

Extended Watchlist:

Blue Horseshoe Stocks: MTBC Recap & More

Medical Transcription Billing Corp. MTBC

We caught wind of a potential opportunity in MTBC yesterday morning on a routine scan, and we included it in our extended wathclist for the day. We’re glad that we did, because it turned out to be our top performer for the session!

From a low of 1.43 MTBC shot to a high of 2.87 for an early intraday rip of 101% The stock traded massive volume to the tune of fourteen times the monthly average, while holding the vast majority of its daily gain into the close at 2.40. Based on those factors, we’re very interested to continue tracking MTBC over the course of the next few sessions.

While it does appear overbought at the moment, having been in a bullish pattern for a week now, the stock is currently in blue skies, so there’s no telling where this run might end. One thing’s for sure, when it does begin to pull back off of these impressive new highs, we’ll be waiting in the wings for a subsequent dip-and-rip.

Ocwen Financial Corp. OCN

Yesterday morning we pointed out that OCN was looking massively oversold after falling off a cliff a couple of weeks ago. We also alluded to the fact that it was gapping up significantly in the premarket.

Our vigilance paid off instantly as the stock quickly turned into the bottom bouncer we had it figured for, running 30% intraday from 2.60 to 3.38 on roughly six times the 30-day average. Even if it just returned to its 200DMA, it would spell further gains of 38% so we’ll continue to keep an eye on OCN.


Speaking of bottom-plays, we’re taking notice of NXTD this morning as the stock is gapping up past its current 50DMA of 1.86 in the premarket.

Prior to today it had already begun to bear the look of a stock that was ripening for a rebound, and we’re going to want to pay close attention to its progress in sessions to come looking for the recording of higher highs and higher lows.

Extended Watchlist:

Blue Horseshoe Stocks: Strong Start to the Short Week

Even during a time of relatively high uncertainty for the markets at large, and on a short trading week, which are often more subdued than a typical week, we still managed to suss out a wide range of interesting plays in yesterday’s premarket report. Therefore, the bulk of today’s offering will be comprised of performance updates.

ViaDerma, Inc. VDRM

VDRM turned out to be the crown jewel of yesterday’s report, undergoing a massive intraday run that offered up chances at huge single session gains. We initially tagged the stock before adjourning for the holiday weekend on Friday morning. and it responded with a pop from .0048 to .0087 (+81%).

We kept it in yesterday’s report, and that’s when it really kicked into high gear, trading in a range from .00845 to an incredible new high of .0242. That worked out to a single-session romp of 186% and extended our observed gains over a two-session swing from Friday to 404%

Congrats to any of our readers who were able to hitch a ride on this wild breakout!

mCig, Inc. MCIG

As we reminded readers yesterday, MCIG was among those stocks we mentioned in our first report of 2017, subsequent to which, we would observe a low of .1599.  We then saw two weeks of a notable uptrend which brought us to yesterday’s session.

Despite already having attained a new all-time high on Friday, MCIG kept the train rolling with a solid intraday performance leading to another new high. The stock traded in a range from .388 on up to .505, a 30% push which occurred on roughly 5x the monthly average volume.

The bullish move extended our overall observed range on MCIG in just over two weeks to a whopping 216%  Any further moves from here would just be icing on the cake, but we’ll want to leave MCIG on our radar screens because a dip-and-rip pattern could be forthcoming before the week is through.

Retractable Technologies, Inc. RVP

The posting of a Form-4 filing last week, along with its positioning on the chart is what led us to focus upon RVP as a “prime bottom-play” in yesterday’s premarket report.

We were correct in doing so, timing the bottom precisely as RVP went on to rebound, trading in a range from .94 to 1.16. While that works out to a modest increase of just 23%, RVP did close just slightly below that high of day, and this morning has reached as high as 1.18. We’ll be very interest to continue tracking its activity, looking for the recording of higher highs and higher lows en route to a sustained uptrend.

PureSnax International, Inc. PSNX

Also appearing in yesterday’s newsletter was PSNX, a subpenny play which also enjoyed a sizable PPS increase on heavy volume.

The stock traded in a range from  .00239 to .0035, an intraday gain of 46%, with more than 11x the monthly average volume of shares changing hands. The price tapered slightly into a close at .0028, but provided the stock maintains support above yesterday’s swing low, we’ll remain interested in PSNX.

Delcath Systems, Inc. DCTH

We also want to quickly point out what may very well be another prime bottom-play setup for DCTH. We’ve annotated the chart snapshot below to illustrate why we’ll be tracking this one as well as we head through midweek.

Extended Watchlist: