Blue Horseshoe Stocks: SSLJ New Highs & More

SSLJ.com Ltd. SSLJ

We included a reminder on SSLJ in yesterday’s premarket report, the second time since our initial alert on the Tuesday before last wherein we expressed our interest in the stock as a bottom play.

The stock subsequently experienced a low of .64 and while it had already made significant headway as of yesterday morning, the session brought even more impressive gains our way.

We mentioned it could move to fill its gap on the chart and it did so. The stock traded in a daily range from 1.72 to a new high of 3.00. That works out to an intraday run of 74% and represented a total increase of 369% from our observed low in just two weeks!


Advanced Micro Devices AMD

We recently had great success with some AMD options plays, a stock that we often use for that purpose, but didn’t talk much about the real story, which is the stock’s incredible rise this spring and summer.

We talk about AMD quite often in fact, with one of those alerts coming several months ago on April 26th. Since then, the stock has essentially done very little other than bull its way to impressive new highs. Subsequent to that April alert, it was trading at lows of 10.61 and it never looked back. The stock reached new highs of 20.18, a 90% increase. It’s rare to see such a big stock make a double but AMD has certainly gotten close over the past few months of activity.


Extended Watchlist:
HYRE, CGNX, ABIO, SPWR, GST, I

Blue Horseshoe Stocks: SSLJ Recap, Options & More

SSLJ.com Ltd. SSLJ
It’s been just under a couple of weeks since we slated SSLJ as a play to watch for a bottom; it was the Tuesday before lastthat we mentioned we’d have an eye on the declining stock that appeared to be ready to reverse at any time.

Friday we saw that come to pass, and the rebound that accompanied it was very impressive indeed. The stock saw a low of .64 before running as high as 1.96, carving out a 206% path and streaking up toward the massive gap that still waits to be filled.

We’re going to continue to monitor this play in the event that it fills the gap, which occupies a range of more than a dollar, and would boost our observed gains by even further.


Yum China Holdings, Inc. YUMC

We targeting some options contracts in the YUMC chain on Friday following the company’s Q2 earnings beat, selecting the YUMC 08/17 $37.50-42.50 Calls
for observation. While we didn’t get multi-bag moves, the gains that were available were still noteworthy.

$37.50 Calls – Range: 1.10-1.70 – Max Gain: 126%
$40 Calls – Range: .55-.80 – Max Gain: 1566%
$42.50 Calls – Range: .23-.35– Max Gain: 407%
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Fresh Idea:
Caterpillar, Inc. CAT Weekly $145-149 Calls


Extended Watchlist:
NVRO, TNXP, CDMO, BLMN, FDC

Blue Horseshoe Stocks: NFLX Bearish & More

Netflix Inc. NFLX – Options Idea

The main thing hitting our scanners this morning is NFLX, following the company’s post-market earnings report yesterday. Usually when we deal with NFLX, we’re talking about ideas for the stock rising, but today, we’re going bearish on NFLX for a couple of reasons.

First, not only did its Q2 revenues fall short of expectations on the street, but the company’s weak subscriber growth numbers are causing worry as well. While this may only be a temporary lapse for NFLX as the company hasn’t made it a habit of misses on consecutive earnings reports in the past, we do want to form a short term bearish idea for the options chain.

Secondly, from a technical standpoint, the NFLX chart is exhibiting a strong double top formation. This is not a guarantee that a stock will fall, but is generally taken as a bearish indicator as it suggests trouble with breaking a particular area of resistance.

We’re going to tag the NFLX Weekly $365-345 Puts and have them on watch this midweek.


Bottom Watch Plays

Innovate BioPharmaceuticals, Inc. INNT
gapped down hard, and continued to fall even harder yesterday. It may need more than a single session for reversal and rebound, but we’ll definitely want to have it on our radars while it searches out a bottom because the snap-back could be significant.

Just last month, as you can see, the stock made an incredible run from less than $10, to nearly $30/share, so the volatility is definitely there.

SSLJ.com Ltd. SSLJ is the other bottom-play candidate we’ve ID’ed this morning. It too is currently displaying a chart that is pretty self-explanatory. A recent massive gap-down has lead to a bottoming out, while the stock set new lows yesterday before closing slightly higher. Combine that with an RSI that is indicating a stock which is  about as oversold as it gets, and we’re interested in tracking this one for a potential bottom bounce as well.