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: NBEV Bottom Bounce & More

New Age Beverages Corp. NBEV

We tagged NBEV as a possible bottom-bouncer in our premarket report yesterday morning, and stock has definitely risen to the occasion with the beginnings of what could be a significant rebound.

The stock had been trending down for the better part of the last six months, having started the summer trading at more than $6/share. It seemed a good time to call a bottom, and so far our idea is looking good.

While it’s off to a slow start, rising just 17% from 2.20 to 2.58 yesterday on its highest volume in over four months, we feel good about the chances of a more sustained move, especially with the stock hitting a new high of 3.42 in the premarket today. From yesterday’s low that’s already a swing of 55% We’ll be sure to keep an eye peeled for further movement from this bottom bouncer.

Delta Air Lines, Inc. DAL 

We’re no strangers to trading DAL options. It has traditionally been one of those companies we can count on to provide good post-earnings opportunities after a beat, and today the company exceeded expectations across the board in their Q4 report.

We’re are going to signal a range of contracts which will be expiring tomorrow to try to garner some rapid-strike chances. Our targets are going to be the DAL Weekly $57-58 Calls.

Extended Watchlist:

Blue Horseshoe Stocks: DRMC Review & More

Definitive Rest Mattress Co. DRMC

To start things off this morning we wanted to provide an update on DRMC, which made an excellent intraday move to start the session yesterday.

When last we looked in on DRMC at the end of the short week on Thursday, we had just observed a decent 35% intraday run in the prior session, and left our readers with a closing thought that would end up serving us well. We noted that the stock had been trading relatively thinly as a general rule, and that “a pickup in buying pressure could really send DRMC for a ride, so we’ll keep watch for that, and for the stock to continue maintaining support above the 50DMA”

It’s a good thing that we did keep watch, because the stock would both maintain above the 50DMA (.002), and see the necessary surge in volume to make its mark. Starting out from a morning low of .0037, DRMC bulled its way up to a high of .0079 in roughly the first 45 minutes of trading. That worked out to an incredible single session rip totaling 113%  From our observed low on Tuesday (.0022), yesterday’s high registered as a two-session swing of 259%

The excellent spike in volume came in conjunction with the company’s announcement that it was adding Carbon Fiber to its list of manufacturing technologies, as well as launching its new website. >>View PR

Regen BioPharma, Inc. RGBP

RGBP is hitting our scanner this morning for a couple of reasons. Firstly, the company released a positive PR regarding one of its new drug candidates, HemaXellerate. The results of an animal study conducted at the behest of the FDA proved promising with regard to the treatment’s path to approval for clinical trials.

Secondly, RGBP represents a potential opportunity as a play trading near a recent relative bottom. We’re going to look for RGBP to record higher highs and higher lows. and hold support above Tuesday’s swing low of .12 in order for us to remain interested.

Extended Watchlist:
RMGN, FRO, MM, NQ, PZOO(Testing 3mo. Lows, on Bottom-Watch)

Blue Horseshoe Stocks: AAPL, TMSH

Apple, Inc. AAPL

AAPL has been very good to us recently as the stock pushes ever-higher. The last (and only) time AAPL has ever been this highly valued was back in late 2012. We’ve squeezed a lot of life out of AAPL Calls, and should the current trend continue, this may only be the beginning.

During yesterday’s session AAPL surged as high as 649.3699, just shy of a big psychological barrier.  If we can see a break of that $650-mark, we could easily see another 10-point day from Apple. Failure to crack through that mark may result in a consolidation, but nothing of what we’ve seen from this stock lately suggests that the party’s over.

We’ve still got our eyes on the Call side of the options chain as we cruise into the weekend; and as you know, AAPL will undergo a 7-for-1 forward split effective on Monday, greatly increasing its number of shares. It is thought that the calculated move will make the stock accessible to more investors, and we expect AAPL to be trading just under $100 following the split, so that could very well be the case.

We’ll see where it lands, and our strategies will be very much the same as they are now, just at lower prices. We also have the launch of the new iPhone to look forward to, although there’s no concrete date on that yet. Speculation over its new features is something we expect to continue driving up the stock’s value until the product is launched.

All in all, this summer could be a big one for Apple, and we’ll be following along every step of the way, using options to leverage big gains for ourselves as we’ve done so many times in the past.

TransGlobal Assets, Inc. TMSH

On Wednesday, we tagged TMSH in our extended watchlist, and we were glad to have done so. The stock has provided us with a nice 50% move from .006-.009 this week. As you can see on the chart below, there are a lot of positives, including an impending golden cross, so we’re still going to be very interested to see what can happen with this play moving forward.

The key resistance area is yesterday high at the .009-mark, and a break of that level would send us into Blue Sky Breakout mode, so we want to keep a close watch on TMSH heading into next week.

Extended Watchlist: