Blue Horseshoe Stocks: Bottom-Plays & More


Big Board Bottom Plays

Ra Pharmaceuticals, Inc. RARX – The first of a pair of NASDAQ-listed stocks with nice chart setups, RARX has actually been building a solid recovery trend off of its bottom since last week. A couple of Form-4 filings around the same time show two huge $15M blocks purchase by two separate insiders at the stock’s lows.

Meanwhile, there’s still a fair bit of ground to recover from what it has lost in the past ten weeks or so. RARX flirted with its 50DMA yesterday, so we’ll be looking for a break past that point, with indicators on the chart suggesting a fair chance of that happening.


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Liberty Tax, Inc. TAX – We’ve also noted the recent bludgeoning of TAX, which has been in a general downtrend for the better part of five months. In this case, we haven’t reached bottom-bouncer status yet, but more of a bottom-watch. At present, the stock is now heavily oversold, on the heels of the dismissal of its CEO.

With tax season upon us, this is the time of year that we’d expect companies such as TAX to do their highest volume of business, so now seems as good a time as any to track this play for a bottom-bounce.



Advance Auto Parts, Inc. AAP

The last time we talked about AAP was a few months back, and we managed to find some nice gain opportunities within the AAP options chain following the company’s strong quarterly report.

AAP reported quarterly earnings once again this morning, and we thought we’d take another crack at it, by signaling the AAP 03/16 $105-115 Calls for observation.



Extended Watchlist:
NETE, CVRS, LPSN, EQT, KL, CRMD

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Blue Horseshoe Stocks: Options Update, Bottom-Watcher & More

Alibaba Group Holding, Ltd. BABA

First up this morning will be a review of yesterday’s options trading idea that we had for BABA as it came off of an earnings beat. The range of contracts we wanted to track were the BABA Weekly $77-81 Calls and while the stock didn’t make a big enough push to facilitate gains in all of them, we saw some nice action on the lower end. The $77-78′s each made two significant intraday swings that could have been traded upon for the following gains:

$77 Calls – Trading Ranges: 2.00-2.75 (+37%), 1.50-2.30 (+53%)
$77.50 Calls – Trading Ranges: 1.55-2.32 (+49%), 1.37-1.87 (+36%)
$78 Calls– Trading Ranges: 1.20-1.90 (+58%), .83-1.45 (+75%)


Nate’s Food Co. NHMD

There was no need to be patient with NHMD after we tagged it for observation just prior to the opening bell in yesterday’s premarket report. We noted that the stock had seen some momentum buildup; we were looking for a carryover and found it.

The sizable intraday swing came early in the session as NHMD ran from a low of .004-.0074, an 85% pop. It enacted a bit of a dip and rip into a close at .006. We’ll leave a space on our radar screens reserved to monitor NHMD moving forward, as volatile subpenny plays like this can often be good for daily flip opportunities.


JTH Holding, Inc. TAX – Bottom-Watcher

We’ve got an interesting chart setup in TAX, which as you can plainly see without the aid of annotation on the snapshot below, is currently looking egregiously oversold. Even as Liberty Tax was recently voted “Best of the Best” by Entrepreneur magazine(>>View PR) the stock has been taking a tremendous beating.

Over the past few sessions the stock seems to have been trying to find support in the low $11-range, and that is where we come in. We like to track stocks after they’ve been pounded into the pavement for possible rebound plays, as our regular readers knew very well. In the case of TAX, a return to its 50DMA at which it was trading less than a month ago, would mean gains exceeding 50% over yesterday’s closing price.


Extended Watchlist:
CCTL, PACD, CYTX, ATHX, MNGA, YELP