Tag: STML

Blue Horseshoe Stocks: More Options Plays

Netflix, Inc. NFLX – Options Idea

On the heels of the company’s solid quarterly report including adding over eight million new subscribers, we selected the NFLX Weekly $247.50-255 Calls as as our options trading targets, even as the stock had already pressed to a new all-time high, and there were high premiums baked into the options prices.

Our bullish hunch turned out to be absolutely correct, with the stock surging out of the gate and ultimately reaching a high of 257.71. A secondary move was there

That move facilitated some very nice intraday opportunities in our designated contracts:

$247.50 Calls – Range: 4.87-8.02 – Max Gain: 65%
$250 Calls – Range: 3.66-6.40 – Max Gain: 76%
$252.50 Calls – Range: 2.68-5.03 – Max Gain: 88%
$255 Calls – Range: 1.90-3.80 – Max Gain: 100%

Fresh Options Ideas

Continuing along the theme of using big name earnings beats as leverage to make quick-strike options trades, we’ve got a a fresh pair this morning. Ford and GE are both coming off of being oversold, compounding the chance for solid runs off of their bottoms.

We’re going to radar some contracts in each chain to try to take advantage of the situation:

Ford Motor Co. F – Feb 2nd $12 & 12.50 Calls

General Electric Co. GE – Weekly $17-18 Calls

Extended Watchlist:
OHGI, MSCC, OBLN, CRIS, PBR, TEL, STML, NXTD

Blue Horseshoe Stocks: GEO Options on a Roll & More


The GEO Group, Inc. – Options Review

GEO has earned itself top billing in our report for the second day running, as the stock continued its rebound yesterday, reaching new highs, and pushing our options ideas deeper into the money. Despite multi-bag gains on Friday, we reasserted our interest in continuing to follow them, and it was definitely the right move.

The GEO 09/16 $20 and 22.50 Calls were the targets we introduced on Friday morning, and our observed gains were extended by a healthy margin yesterday as GEO rose to a high of $25 even during the session.

The $20 Calls traded in a range from 4.00 up to 5.12, an intraday swing of 28% and an total two-day increase over our observed low of 1.61 amounting to 211%

The $22.50 Calls traded up from 2.25 to 3.05 running 36% intraday, and representing an overall increase of 251% from Friday’s low of .87.

As we stated yesterday, these ideas should remain good for as long as GEO sustains this strong rebound pattern.

Best Buy Co. Inc. BBY – Fresh Idea

BBY is flying high in the premarket this morning in the wake of its earnings release which contained a major increase in same-store sales for the quarter.

With the type of activity we’re witnessing early on this morning, we’re going to want to signal a range of options calls to observe here as well. Our specific contracts of interest are going to be the BBY Weekly 36.50-39 Calls, which will hold our interest provided that BBY maintains support in the low $36-range on any pullbacks.

First Acceptance Corp. FAC – Bottom-Watch

We’re going to take this opportunity to declare a bottom-watch for FAC, which is currently feeling out its lowest prices in a month after peeling back off of a massive run in late July.

On the chart below, we’ve highlighted the channel between recent swing lows at 1.01 and 1.15 as the area where we’d like to see a bottom-bounce occur, and we’ll have FAC on our radars in the days ahead for the possibility of that occurring.

Extended Watchlist:
DATA, WPFH, STML, TGD, HEB, BCCI(Potential Bottom)