Blue Horseshoe Stocks: Wrapping Up a Solid Week

Five Below Inc. FIVE

Fresh for yesterday morning’s premarket report, we jumped on the FIVE options chain with some quick-strike ideas in the FIVE Weekly $125-127 Calls and after an impressive $5+ intraday run for the stock itself, all three of those ideas bore fruit instantly. We wanted to recap the performance this morning, as well as update our idea for this play.

$125 Calls – Range: 2.40-5.00 – Max Gain: 108%
$126 Calls – Range: 2.18-3.30 – Max Gain: 51%
$127 Calls – Range: 1.64-3.00 – Max Gain: 83%

With FIVE gapping up again in the premarket today, we expect to see further gains from the above-mentioned contract sets, but we also want to roll up our potential strike prices a bit to follow the money a little closer. We’ll include the FIVE 04/05 $128-129 Calls in our pool of ideas going forward.


FRESH IDEAS:

BlackBerry Ltd. BB – Fresh off of the scanner this morning, we’ve got BlackBerry making waves in the premarket after a solid beat on revs and profits, in a quarterly release that included record software IP licensing. We’re going to keep an eye on the BB Weekly $9-10 Calls*.
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CarMax, Inc. KMX - CarMax also reported this morning, and it too is moving the needle in the premarket on the heels of a beat on profits. We’re going to add the KMX Weekly $65.50-67 Calls* to our tracklist for today as well.

*DO NOT attempt to trade weekly contracts on a Friday unless you an advanced level trader with access to disposable funds!


Extended Watchlist:
COBI, RVLT, PIXY, TGTX, AWSM, ACET, AMRS

Blue Horseshoe Stocks: AAP, NPTN & More

Advance Auto Parts AAP – Options

We have a confluence of favorable conditions to look AAP for potential options trades as we kick off a new trading week this morning. As of the end of last week, the stock was trading very near to its annual lows , and has a significant gap on the chart to the upside. Combine that with the company’s strong earnings report including a solid beat on profits, and we’re interested to see where this one will take us.

To try and take advantage of the present scenario, we’re going to tag both a shart and a longer term set of ideas, in the event that the stock sees an extended recovery, as the the chart setup suggests it might. We’ll be looking to AAP Weekly $85-95 Calls, and the 01/19 $95-105 Calls.


NeoPhotonics Corp. NPTN

We also would like to go over the move made by NPTN after we signaled it for observation last Monday morning. Subsequent to that point we ‘ve witnessed a respectable run from a low of    5.10 to a high of 6.66, a gain of 31%

We saw the stock record higher lows every single day last week, and will look for that trend to continue. If the stock can break the double top formation that’s currently on the chart, we could be in line to see much more significant gains.


Extended Watchlist:
MOSY, ONP, REDU, ITUS, TCO, TGTX