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)

Blue Horseshoe Stocks: SPU, MAXD Recap & More

Friday’s Hot Picks

We had a couple plays that we tagged in Friday morning’s premarket report that went on to provide traders with a good chance at some intraday gains.

SkyPeople Fruit Juice, Inc. SPU - We put SPU on watch after noticing the strong session it recorded on Thursday, and the momentum carryover was pretty impressive. From an early low of 4.35, took of and hit a high of 7.90. That worked out to an intraday jump of 82% which came on over 17X the 3-month average volume.

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MaxSound Corp. MAXD - Also performing well was MAXD, which we tracked over an impressive range from the .002′s to the .008′s back in early April. We circled back around to it at an opportune time on Friday, as the stock launched from .0043 on up to .0064, logging a 49% pop on the day.


Marinus Pharmaceuticals, Inc. MRNS – Update

We want to give our readers a quick reminder on MRNS this morning, a stock we recently tagged with the intent of seeing it try to fill the massive gap on the chart.

After seeing 1.35 following that alert, the stock began to do just that as it hit a high of 2.23 on Friday. That’s a 65% run-up so far, and we’re going to be very interested to see how the activity unfolds as we kick off this new trading week.


Avinger, Inc. AVGR

Speaking of stocks with enormous gaps to fill on their charts, we also want to begin monitoring AVGR, which, as you can see on the snapshot below, is in a position similar to that of MRNS when we began tracking it a couple weeks back.

The stock is searching for a bottom after taking a massive gut punch in the form of a three-dollar gap-down. While it appears it may yet have some bottoming out to do, it’s egregiously oversold at the moment, and we’ll want to be there when its own recovery begins as the resulting rebound could carry some substantial gain opportunities along with it.


Extended Watchlist:
BILB, SGBY, TGD, CIDM, NXTD, OPTT,