Blue Horseshoe Stocks: UAA Update & More

Under Armour, Inc. UAA – Update

We mentioned the possibility of further gains for the calls we signaled in the Under Armour options chain on Tuesday, the UAA Weekly $15.50-16.50 Calls.

The markets pulled a head-fake, and ended up going green, which helped allow the stock to make to more than $18. That created huge opportunities in our highlighted plays, which went quickly from double-baggers on Tuesday, to a triple, a quad, and even an octuple-bagger!

$15.50 Calls – Range: .60-2.50 – Max Gain: 317%
$16 Calls – Range: .34-2.00 – Max Gain: 488%
$16.50 Calls – Range: .16-1.50 – Max Gain: 838%

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Fresh Options Idea:
SPY Weekly $270-272 Calls



Payment Data Systems, Inc. PYDS

We are looking at PYDS as a bottom-bouncer with just the kind of chart setup we like. The stock spent nearly all of January and the beginning of February under heavy consolidation down to its lowest PPS since October. In the last couple of weeks it has shown signs of a solid turnaround.

As you can see below, the RSI is coming off of being oversold and presently cruising toward the 50-line,  the MACD is in the midst of a bullish cross, and yesterday saw the testing of the 200DMA. PYDS also has a recent history of rapid runs up the chart, also visible on the included snapshot, so we’ll be keeping a close eye on it in the coming days.


Extended Watchlist:
CSCO, MNOV, MBRX, TEVA, RIOT, HIIQ, SBCF, OMF

Blue Horseshoe Stocks: NLNK Recap & More

NewLink Genetics Corp. NLNK

After our call of NLNK Thursday morning, the stock traded from 9.50-14.48 (+52%) which was a fantastic move for something it that price range.  We noted the strong close, and Friday morning re-iterated our interest despite the big move we’d already witnessed.

It’s a good thing we left NLNK on our radars, because while it didn’t quite rise to the previous session’s intraday performance, it came awfully close, and completed a very nice two-day swing for us in the process. Friday’s trading range on NLNK ran from 13.51 up to a new high of 19.30 for a daily move of 43% and representing a two-session rise of 103%

The stock traded thirteen times its monthly average volume, and maintained well over half its advance into a second consecutive strong close, so we’re quite curious to monitor its activity as we kick off a fresh trading week.


Kura Oncology Inc. KURA

Speaking of higher-priced movers, we also tagged KURA in Friday’s premarket report after the company’s mid-stage cancer treatment trials yielded positive results. It too went on a run which was uncharacteristically volatile for a $9+ stock.

The tradin grange on this one ran from 9.30-13.80 for an intraday push of 48% and did so on over 20X the monthly average volume. The close wasn’t quite as strong as the previously mentioned play, but we’ll still leave a slot open on our radar screens for KURA heading into this week.

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Honorable Mention: Adaptimmune Therapeutics plc ADAP – While the level of gains provided wasn’t quite as high following our tag of ADAP on Thursday, the stock did string together a noteworthy couple of sessions. It traded from a low of 7.02 on Thursday to a high of 8.95 on Friday, marking a 27% swing.


Extended Watchlist:
MRNS, TEVA, BSMX, LINU, PETS

Blue Horseshoe Stocks: Major Victory for Marijuana & More

Starbucks Corp. SBUX – Options Update

Our options idea from Friday morning, the SBUX 11/11 $53.50-55 Calls
continued to be good plays as SBUX stock posted some solid intraday activity even as many others faltered in the uncertainty of the elections. It allotted for us to see further opportunities over the multi-bag gains we’d already been afforded to that point.

$53.50 Calls – Range: 1.05-1.47 – Max Gain: 169%
$54 Calls – Range: .76-1.07 – Max Gain: 300%
$54.50 Calls – Range: .45-.69 – Max Gain: 458%
$55 Calls – Range: .23-.43 – Max Gain: 344%

The markets as a whole are showing trepidation over the events of the past 24 hours, but once again, we must remain open to the possibility of seeing further moves out of these contracts which have treated us well so far.


CANNABIS SECTOR UPDATE:

As expected California passed its recreational marijuana initiative on election day, with Nevada and Massachusetts following suit.  Medical pot passed in North Dakota, Arkansas, and Florida. As we stated before, the whole landscape of the cannabis industry is set to change now, as the country as a whole takes several leaps toward the end of nationwide prohibition.

It’s just the outcome we expected, and the ramifications will begin to come into clearer focus in the weeks and months ahead as we observe how each state will handle roll-out of the new laws.

Our sector-wide alert will continue indefinitely as the effects of the outcomes on the investment side of things materialize.


Potential Bottom Plays

MannKind Corp. MNKD – It’s been a long while since we’ve taken a look at MNKD, and we want to draw some attention to it this morning as a possible bottom play. It’s been in a general downtrend for the better part of four months, and looks like it could be in a good spot for a rebound from this juncture. We’ll reserve it a space on our radar moving forward.

Teva Pharmaceutical Industries Ltd. TEVA - The threat of a class-action lawsuit has produced a backslide in TEVA in recent sessions. It’s just the kind of consolidation on non-material developments that we’re always scanning for as course corrections can often occur following this type of activity, and sure enough, the stock appears to be rebounding in the premarket. To take advantage, we’re going to look to the TEVA Weekly $40.50-42.50 Calls.


Extended Watchlist:
UAMM, AGTK, REFG, CBGI, WSGF, DAKP