SPY | Blue Horseshoe Stocks

Blue Horseshoe Stocks: New Options Ideas, Rebound Play & More

JC Penney Company Inc. JCP – Options Review

If you recall yesterday’s premarket report, we were targeting some JCP options calls to play off of the anticipation of this morning’s earnings release. Our idea returned some nice opportunities for intraday gains. We were specifically looking to the JCP Weekly $8.50 Calls for these chances, and those contracts traded in a range from .39-61 during yesterday’s session. That made it possible for traders to bank up to 56% in intraday profits.

As for JCP’s Q3 earning release, expectations were exceeded and yet the stock is still down considerably in the premarket. Many people are citing an overall struggle for the retail sector as a whole this quarter as the reasoning behind some of the less-than-spectacular performances we’re seeing.

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Fresh Options Ideas:

To finish out the week, we’ll formulate a couple of quick-strike options ideas to correspond with the general sentiment of the markets this morning. Stocks have been continuing to struggle, presumably due at least in part, to the uncertainty of a potential rate-hike next month. As a result the UVXY (can be thought of as a ‘market fear’ indicator) just made its biggest move of the past few weeks and looks like it wants to head higher this morning.

To play into this potential trend we’re going to flag both the UVXY Weekly $33-35 Calls, and the SPY Weekly 205-203.50 Puts for potential daytrading action.

Of course, if the markets pull a head-fake and appear as if they to want to rally, we can always jump to the other side of the fence with each idea. In that case we’d be observing the same strike prices, only with UVXY Puts and SPY Calls.

Bonus Idea: FIT Weekly $30 and 29 Puts

MannKind Corp. MNKD

We’re also going to put MNKD on watch in sessions to come; the stock established a new 52-week low on Wednesday, and followed that up with a significant rebound yesterday.

We’ll be on the lookout for the recording of higher highs and higher lows and a testing of key resistance at the 50DMA of 3.26, which from current levels, would spell a solid gain of 25% in and of itself.

Extended Watchlist:
ARCS, ADCF, TDEY, URBF,

Blue Horseshoe Stocks: Reviewing PBR, HMLA, SPY & More

Petroleo Brasiliero SA (Petrobras) PBR – Options

Revisiting PBR this week as the stock has been trending up off of its lowest PPS in the last dozen years, continued to be a good decision yesterday.

For those that may have missed the reports, our primary targets were the PBR Weekly $5.00 and $5.50 Calls, with the $6 Calls as a conditional target in the event that PBR rebounded high enough. The action in the stock certainly provided us with the chance at solid gains across the board in the previous session, with the $5’s, $5.50’s, and $6’s logging intraday gains of 42%, 80%, and 175%, respectively.

That pattern of potential repeated itself and grew exponentially yesterday. The opportunities were as follows:

$5 Calls – Daily Range: .38-.66 – Max Gain: 74%
$5.50 Calls – Daily Range: .06-.28 – Max Gain: 366%
$6 Calls – Daily Range: .02-.05 – Max Gain: 150%

Moving forward, we’ll look for dip-and-rip off of this morning’s premarket high of 5.98, and for us to remain interested in these contracts, we’ll need to see support hold at or above 5.50 on that dip.

Homeland Resources, Ltd. HMLA

We were tracking HMLA through our extended watchlist yesterday, and observed a solid intraday run from the stock.

From an early low of .00189, the stock ran into the close as reached a new high of .003. That goes on the books as an intraday swing of 59% so cheers to anyone who pared some profits out of that move.

Fresh SPY Options Ideas

We had a tremendous amount of success with the SPY last week, observing astronomical moves in our targeted contracts. We even had an exceedingly rare, single-session mover of over 20,000%! We would be thrilled if today’s ideas yielded the chance at even a small fraction of those mammoth gains!

Based on yesterday’s activity on SPY chart, current market conditions, and time-decay evaporating premiums on weekly contracts, we’re going to look for quick-strike opportunities in the SPY Weekly $199.50-203 Calls.

Don’t forget: Trading options with a weekly expiration on a Friday inherently carries an elevated risk/reward dynamic.

Extended Watchlist:
ABHI, CMGO, HEMP, ACTL

Blue Horseshoe Stocks: Continued Options Success & More

Continued Options Success

We kept pounding the table on SPY options to kick off the week yesterday morning, following some of the largest single-session moves we’ve ever witnessed came to the contracts we were tracking on Friday. The Weekly $191.50-193 Calls served up the chance at earth-shattering intraday gains ranging from 5966-26000% and while our ideas for yesterday obviously didn’t produce figures like those, the potential gains were still exceptional in and of themselves.

Based on the premarket activity mixed with our own expectations of how market activity would unfold, we specifically targeted the SPY Weekly $194-197 Calls and were very pleased with the ensuing action in every set contracts:

$194 Calls – Daily Range: 3.12-5.07 – Max Gain: 63%
$194.50 Calls – Daily Range: 2.91-4.57 – Max Gain: 57%
$195 Calls – Daily Range: 2.42-4.15 – Max Gain: 71%
$195.50 Calls – Daily Range: 2.19-3.77. – Max Gain: 72%
$196 Calls – Daily Range: 1.90-3.35 – Max Gain: 76%
$196.50 Calls – Daily Range: 1.59-2.95 – Max Gain: 86%
$197 Calls – Daily Range: 1.33-2.60 – Max Gain: 95%

The markets have now seen five consecutive days of a strong rally, so we’d expect to see a brief consolidation and course correction. In that event, we’ll look for the SPY to hold support in the $195-range in order for us to remain interested in the above-mentioned weekly contracts.

Lululemon Athletica, Inc. LULU

The last time we formulated an options-trading idea for LULU was roughly a year ago, and at that time we caught a single-session move of over 400%. We want to revisit this play again today; this time, with a longer-term idea. The stock itself is attempting to record a sustained rise off of recent lows, and the chart appears to be ripening toward that eventuality.

The idea that we’re going to submit accordingly is going to be the LULU November 6th $53 Calls (Last Trade 1.25) It’s quite feasible that we could see a return on the chart to the $56-range by the expiration date. That would push those contracts three dollars into the money, and would likely produce double-bag gains, so we’re going to place them on an extended watch.

Extended Watchlist:
AGTK, PUGE, PPCH, PMCS, EXEL, GNK