Blue Horseshoe Stocks: MDCO Options Recap & More

The Medicines Co. MDCO

We were spot on in terms of the options ideas we offered up in yesterday’s premarket report.
After taking a look at the premarket activity being driven by some untraded-upon press, we targeted the MDCO Weekly $38-41 Calls. We specified that we’d be on the lookout for a dip-and-rip scenario to give rise to chances in that range, and it turned out quite well.

Here’s a look at the possibilities for big gains that traders were afforded with those contracts: 

$38 Calls  – Daily Range: 2.30-3.50 – Max Gain: 52%
$39 Calls  – Daily Range: 1.75-2.55 – Max Gain: 46%
$40 Calls  – Daily Range: 1.05-2.40 – Max Gain: 129%
$41 Calls  – Daily Range: .80-1.75 – Max Gain: 119%

Other Notable Gainers

A couple of the stocks we’ve had on bottom-watch which we mentioned in yesterday’s report had modest yet notable sessions to kick off the week, and we’ll continue to monitor for signs of continued recovery in both instances. 

Bon-Ton Stores, Inc. BONT - We’ve been on BONT’s trail for a couple of weeks, and yesterday the stock made a slight jump from 3.60-4.07 for an intraday move of 13% and held the majority of those gains into the close.

SFE Entertainment, Inc. SFXE – SFXE also made a nice move from a low of .91 up to 1.04, a 14% jump, and it too held the majority of its ground, closing above a dollar.

VelocityShares 3X Long Crude Oil ETN (UWTI)

We’re seeing some bullish patterns on the UWTI chart that we felt were worth pointing out. As you can plainly see on the annotated snapshot below, this particular note has traded record volume en route to logging four consecutive sessions of higher highs and higherl ows off of its recently established 52-week low.

We’ll be on the lookout for the possibility of further advances provided that Crude Oil futures can see a sustained uptrend over recent lows.

Blue Horseshoe Stocks: Bottom-Play Roundup & More

Last Week’s Bottom-Bouncers

We were tracking a couple of stocks and an ETF that we put on bottom-watch heading into the end of last week, and are happy to report that we’ve seen the beginnings of some nice rebounds on those fronts.

Direxion Daily Nat Gas Bull 3X ETF (GASL)
It started with the triple-leveraged natural gas bull fund, GASL, which we caught coming off of its 52-week lows and entered into the conversation on Thursday. At the time we would witness a PPS low of 4.88, and after a nice initial run that day, GASL would go on to register a high of 6.98 on Friday. That marked a timely call on our behalf which opened the door for overnight profits of up to 43%


LINN Energy, LLC (LINE) & Linn Co, LLC (LNCO)

We tagged this linked pair on Friday, noting that one is a publicly-traded wholly-owned sub of the other, and that the chart patterns were virtually identical. Traders could have latched on to either, and witnessed the reversal we called for on the charts.

The move for the parent, LINE, was recorded as a run from 2.73-3.83, a 40% intraday swing. The subsidiary, LNCO, ran 34% from 2.46 to 3.29. Both very respectable single-session moves.

We’ll continue to monitor all three of these plays for the possibility of continued uptrends as we kick things off this week. We’ll look for each one to register higher lows, building a higher base of support than we witnessed on Friday.

Pazoo, Inc. PZOO – Update

We re-tagged PZOO on Friday, pointing out the recovery that had been transpiring on the chart, and we were granted another nice opportunity by the stock. We watched as it ran from a daily low of .0059 and went as high as .0073

In the video chart we drew up for PZOO in that report we mentioned we wanted to see a break of the 50DMA (.0061) and we’ll look for the stock to maintain support at or above that level on any pullbacks. The next area of key resistance crops up at the 200DMA of .011.

The company had a conference call last week (>>>Read Transcript or >>>Listen to Call) which went over a vast array of important topics. We suggest taking the time to go over that; highlights included financial and share structure data, as well as information regarding all branches of the company’s rapidly expanding marijuana testing business.

The Medicines Co. MDCO

Setting off our abnormal volume scanner this morning was MDCO, which looks ready to fly with un-traded upon news regarding a cholesterol study hitting the wires on Sunday. The stock is up considerably in the premarket, so we’re going to formulate a potential quick-hitting options idea for intraday/intraweek flip opportunities- We’ll be looking for the possibility of dip-and-rips in the range of MDCO Weekly $38-41 Calls.

Extended Watchlist:
SIRG (Subpenny Momentum Play)
BONT, SFXE, GBSN (Bottom-Watch)

Blue Horseshoe Stocks: Fresh News Plays & More

Fresh News Plays

We’ve got a couple of stocks that we’ve been tracking this summer coming out with noteworthy press in the early hours this morning, we’re going to want to increase our alertness level for each of them as we kick off a new trading week.

NuGene International, Inc. NUGN -  NUGN is appearing in the news feed with a substantial revelation at an opportune time this morning. The stock took an absolute beating last week, and just began to find its footing off of a previous support level on Friday. At the moment the stock is extremely oversold. Coupling that with the addition of this morning’s PR announcing the company’s Q2 revenue growth of more than 150% over the prior year, conditions could be just right for a rebound. We’ll be on a sharp lookout for that possibility.


AVEO Pharmaceuticals, Inc. AVEO

AVEO stock is gapping up immensely in premarket trading on the strength of a deal the company just announced with Novartis. The potential for both a momentum play and/or a bounce play is elevated. We’ll need to see it maintain support at or above 2.20 (a previous resistance point) on any pullbacks to remain interested. With high profile news like this, it’s quite possible that it will do so.

AVEO Oncology (AVEO) today announced an exclusive, worldwide license agreement with Novartis for the development and commercialization of AVEO’s first-in-class, potent, humanized inhibitory antibody targeting growth differentiation factor 15 (GDF15), AV-380, and related antibodies>>>Full PR

Tesla Motors, Inc. TSLA – Options Idea

We’d like to submit a potential options trading idea to start the week. Morgan Stanley has raised their price target on the stock (Currently valued in the mid-$250′s) from $280 to $465, and TSLA is gapping up on the heels of that announcement. As a result, we see the potential for some intraday and/or intraweek trading opportunities in the range of TSLA Weekly $250-265 Calls.

Extended Watchlist:
ZU(Gapping Up), SFXE & XGTI(Both Oversold, on Bottom Watch)

Blue Horseshoe Stocks: EYES, BIOC Recaps, RSHCQ & More

Biocept, Inc. BIOC

BIOC continued to roll for the third straight day yesterday since we tagged the play in Monday’s extended watchlist. We witnessed a trading ramnge from 3.90-4.91, which marked an intraday move of 26% on nearly 12x its monthly average volume.

Calculated from the low of 1.71 which we observed on Monday, yesterday’s high represented an overall increase of 187% in a span of just three sessions.

Second Sight Medical Products, Inc.  EYES

We added EYES into the mix in Tuesday’s report, and it too continued to trend up yesterday. The stock traded in a daily range from 11.25 to 14.75, a healthy 31% intraday run.

From our observed low of 9.55 on Tuesday, yesterday’s high was equal to a 54% session-over-session move.

RadioShack Corp. RSHCQ

We want to update our readers on RadioShack today, which despite its ongoing bankruptcy proceedings, has been a winning selection for us this year. We first jumped on it in our report published on the morning of February 9th, whereupon we witnessed a low of .1251 and on Tuesday, the stock hit .37, which comes out to a twelve-session increase of 196%

Yesterday we received word of the approval from a U.S. Bankruptcy Court judge to auction off roughly 2,000 RadioShack stores, with an initial bid of $200M having been entered by the Standard General hedge fund.

Lawyers for RadioShack claim that the company has received bids on the leases of more than 200 of the 1,100 locations slated for immediate shutdown, including interest from a unit of GameStop Corp. >> View Article

We’ll be interested to monitoring RSHCQ as events continue to unfold in coming weeks.

Yesterday’s Extended Watchlist Movers 

We also had a number of plays from yesterday’s extended watchlist make notable moves:

Legend Oil & Gas, Ltd. LOGL enjoyed an early pop, running straight out of the gate from a low of .0038 to as high as .0049; good enough for a quick intraday scalp of up to 29%

BenefitFocus, Inc. BNFT produced a substantial spike for a stock trading in its price range, rising steadily from its low 32.15 to hit 37.94, a gain of 18%

SFX Entertainment, Inc. SFXE also recorded a modest intraday increase of 14% as it traded in a range from 4.36 to 4.95. It’s worth mentioning that while the CEO of SFXE is attempting to take the company private, the board has come under investigation regarding the equitability of the proposed terms of that deal. Anyone considering SFXE should make themselves fully aware of that situation as it unfolds. >>> GO TO PR

Extended Watchlist:
ELX, PVA, ATOS, FRO, NXTD, GOGO(Signed deal with Delta)

Blue Horseshoe Stocks: BIOC, EYES & More

Biocept, Inc. BIOC

We watched as BIOC set new highs for the second day in a row yesterday. After gapping up in the premarket, the stock came down slightly to bounce off of support at 2.62 before running as high as 3.60 later in the afternoon. That 37% intraday move came on over 31x the 3-month average volume, and the high represented an overall rise of 110% over our observed low of 1.71 on Monday.

Calculated from the premarket high so far this morning (4.20), that figure is extended to a 145% increase overall since Monday.

Second Sight Medical Products, Inc.  EYES

EYES performed nicely for us after appearing in yesterday’s extended watchlist. It saw its low of 9.55 shortly after 10AM, and built steadily throughout the session, reaching its daily high at 11.64. That was good for tidy gains of up to 21% on the day on extreme heavy volume, and like the previously mentioned play, the stock is gapping up in premarket trading today.

It’s possible that we’ll see similar action as the session kicks off this morning with yesterday’s momentum driving the gap-up, followed by another potential dip-and-rip scenario.

Other Notables From Yesterday’s Report

Chegg, Inc. CHGG was another mention from yesterday’s watchlist that ended up faring well with an early low of 7.44 followed by a steady uptrend throughout the day. The run topped out at 8.71 just prior to the close, marking a respectable 17% increase.

Matching that intraday gain with a 17% move of its own was Cytori Therapeutics, Inc. CYTX, trading in a range from .70-.82. on 10x the 3-month average volume.

Extended Watchlist:
WGBS, SSH, SFXE, SMSI, AVXL, BNFT, LOGL(Big Aquisition News)