Blue Horseshoe Stocks: KRFT Recap & More

Kraft Foods Group, Inc.  (KRFT)
In yesterday’s morning report we took note of the huge merger news concerning Kraft and Heinz, and stated our interest in using the resultant activity to our advantage. The dip-and-rip happened just as we predicted, and shortly after 10AM, it was off to the races for every single idea we put forth!

We mentioned our specific interest in KRFT April $75-85 Calls for intraday options trading possibilities, and were extremely pleased with the results.

The $75 Calls traded up from a low of 7.15 to hit a high of 12.30, an intraday gain of 72%  $80 Calls went on a monstrous run from 1.86-8.62, which equaled a 363% move, and the $85 Calls were the hottest ticket of all, running from a low of .30 all the way up to 4.72; a mega-rip of 1473%

It marked our second single-session, thousand-percent gainer in as many weeks, since we hit it big with ESPR Calls last Tuesday. We want to extend a hand of congratulations to anyone who was able to take advantage!


Petroleo Brasiliero S.A. (Petrobras) PBR

Last year around this time, we were making a killing off of PBR. We had caught it coming off of 10-year lows, and it enjoyed an epic rally lasting a period of many months where we were able to pick off large gains on countless occasions. A quick tag search of our archives on the stock will demonstrate just how often it brought us chances to make winning trades.

The last several months have been rocky for the state-controlled oil giant, as oil prices had been in free-fall while company officials were simultaneously wrapped up in a scandal, and it led to the lowest prices for PBR since 2003.

There appears to have been a rebound on the 13th of this month, so we thought now might be a good time to put PBR on our radar once again. Oil prices have been rebounding as well, so we’ll venture a couple of options ideas to keep an eye on moving forward.

We’re going to put a spotlight on PBR 05/01 $6 & 6.50 Calls which could provide significant opportunities if PBR can sustain this recovery off of its recently established lows.


Vascular Biogenics, Inc. VBLT

VBLT appeared in our reports for the first time yesterday, and it turned out to be a well-timed call. The stock traded in a daily range from 6.25-7.86, representing 26% intraday gain. Several of our chatroom members profited off of it, and we certainly hope some of our readers did as well!

Going ahead, we will use 6.25 as a baseline of support; in order for us to stay interested in VBLT we will want to see the PPS maintained above that level.


Extended Watchlist:
CNAT, SDRL, WGBS, MAGS, OTIV, SD

Blue Horseshoe Stocks: Big News for KRFT & More

Kraft (KRFT) to Merge With Heinz
In a move that will effectively create the third-biggest food company on the North American continent, it has been announced that Kraft Foods Group Inc. (KRFT) and H.J. Heinz Co. will merge. 3G Capital and Berkshire Hathaway, which bought Heinz for $23B and took it private back in 2013, will be orchestrating the deal.

As a result of this development, KRFT is gapping up monstrously in the premarket to the tune of more than 30% Generally when we see a stock soar on news like this, our first instinct is to continually scan for a dip-and-rip scenario once the session commences. When the rip does occur, we’re going to be looking to April $75-85 Calls for intraday options trading possibilities.

Kraft Foods, H.J. Heinz to Merge (Wed 8:18AM EDT)


Social Media Sector on Watch

Despite uncertainly over whether interest rates will be raised this year causing a general downturn in the markets, social media stocks appeared to be an exception yesterday.

We’re always looking for trends to exploit for options trading, and should Facebook, Inc. FB, Twitter, Inc. TWTR, and LinkedIn Corp. LNKD continue their hot hand this week, we could see some nice action in the following contracts:

FB Weekly $84-86 Calls
TWTR Weekly $50-52 Calls
LNKD Weekly $260-265 Calls


Vascular Biogenics, Inc. VBLT

VBLT is another gapper this morning that has surged in the premarket following the company Q4 earnings release. The stock briefly spiked to its 50DMA of 8.65 in early trading, and appears as if it will open in the 6.50’s.

We will look to see VBLT re-break the $7-mark once the session kicks off, as there is a large gap on the chart as we point out below, the filling of which would make for some highly notable gains. It’s definitely a stock we want to keep on our radar as we cruise through mid-week.


Extended Watchlist:
KFX, FXCM, ONCY, BLRX, MRNS, GRPN

Blue Horseshoe Stocks: CNDO Recap & Much More

Esperion Therapeutics, Inc. ESPR

ESPR was an unstoppable juggernaut for us this week. On Tuesday, we floated the idea of tracking the ESPR 04/17 $90 Calls, and those contracts have gone on a wild run since then.

As the stock pushed its way to new 52-week highs yesterday, finally topped those contracts out at 28.50, it marked an overall increase of 714% from the 3.50 low we observed on Tuesday; quite an impressive feat for a span of just three sessions.

Add in the multiplicity of opportunities in short-term weekly calls that we’ve witnessed (on the order of percentage gains in the thousands!) as the stock made this historical run, and we’ll have to mark ESPR down as one of our most successful alerts thus far in 2015.


Coronado BioSciences, Inc. CNDO

CNDO did quite well following our tag of it in yesterday morning’s extended watchlist, further solidifying the notion that biopharmas have been on a real hot streak this week.

We watched as CNDO ripped its way from a daily low of 3.62 to as high as 5.35, totaling an intraday run of 48% The move came on volume which smashed the 3-month average by a factor of more than 32X Congrats to any of our readers who lassoed this momentum-mover for some tidy gains yesterday!


Amicus Therapeutics, Inc. FOLD

FOLD also appear on yesterday’s watchlist before extending its own epic run with a modest yet notable increase of 13% on the day, trading a range from 11.63-13.20. Like the previously mentioned play, this stock has also been on a blue-sky breakout, setting new annual highs with every uptick.


Morning Gappers – Options Ideas

Nike, Inc. NKE shares surged as the company beat Wall St. estimates for profits on yesterday’s earnings call, and appears to be gapping up significantly in this morning’s premaket activity. We are going to be monitoring the $101-104 Weekly Calls for potential daytrading opportunities, and for a possible a swing trade into the weeks ahead, we’ll radar the 04/10 $105-110 Calls.

Prothena Corp plc PRTA is gapping up monstrously today to the tune of 40%, soaring on yesterday’s post-market revelation of positive Phase 1 results for its treatment for Parkinson’s disease. We will be placing $35 and 40 Calls on watch for daytrading potential, while tracking the 06/19 $45 Calls for a longer-term play.


Extended Watchlist:
VBLT, SPEX, VGGL, ICLD, RNN