VXX | Blue Horseshoe Stocks

Blue Horseshoe Stocks: Friday’s Options Success & More

VXX & SPY Options Recap

We ended last week on an extremely strong note with respect to our premarket options-trading ideas. As we’ve done so many times this year, we offered up some target ranges in which we felt we’d see big activity, and every single contract highlighted therein would go on to make huge intraday swings.

We outlined our interest in the VXX $20 and 19.50 Puts SPY $206-207 Calls, specifying that we’d flip to VXX Calls and SPY Puts in the event that the VXX breached its premarket high of 19.70. That never occurred, we therefore stuck with the original idea, and the possible gains afforded to whoever was paying attention were quite large:

VXX

$20 Puts – Trading Range: .59-1.79 – Max Gain: 341%
$19.50 Puts – Trading Range: .29-1.28 – Max Gain: 203%

SPY

$206 Calls – Trading Range: .75-3.91 – Max Gain: 421%
$206.50 Calls – Trading Range: .48-3.42 – Max Gain: 612%
$207 Calls – Trading Range: .31-2.05 – Max Gain: 561%

These plays were also topics of discussion in our daily live trader’s chats last week, and we’ve been receiving a lot of inquiries from our readers who want to get involved. We welcome anyone who enjoys our daily reports to join in, and all you need to do is log onto Skype and send a contact request to username stocksumo.

VitaCig, Inc. VTCQ

We put VTCQ on watch in this past Wednesday’s morning report, and the stock made one heck of a two-session swing from the following morning to Friday afternoon’s closing bell.

Friday’s move alone was quite impressive- the stock ran from .008-.145 which comes out to an intraday pop of 81% Our observed low of .0042 came promptly at the open on Thursday, and measured from that point, Friday’s closing price represents a total move of 245%

Granted the fact that we did see VTCQ close at its high of day on roughly three times its monthly average volume, we will want to leave this play on our radars. As usual we’ll look for it to record higher highs and higher lows, and to retain our attention, it will need to maintain support at or above .01. The next key area of resistance appears to be sitting at .0181.

Extended Watchlist:
AMBS, ARYC, AGTK, FCEL, SNGX, IGEX(Bottom-Watch)

Blue Horseshoe Stocks: VXX Options & More

iPath S&P 500 VIX ST Futures ETN (VXX) – Options

We were just mentioning our daily live trader’s chats* in yesterday morning’s report, so we thought we’d give our readers another peek into the activity that goes on in the room. Yesterday around lunchtime, as you can see from the included screenshot below, we were observing the market action caused by the FOMC meeting that was in session at the time.

We noticed new highs in the VXX and signaled our interest in the $19 Calls. We also looked at the SPY, which generally trades inversely to the VXX, and alerted on the $207 Puts; both ideas worked quite well. The VXX $19 Calls ran from .49 to 1.52, a 201% intraday pop. The Spy $207 Puts also offered a nice opportunity as they ran more than 130% from the low 1.30’s to over 3.00.

To follow up with these ideas today, based on premarket activity, we are currently anticipating of a reversal from yesterday’s trends and will thus radar SPY $206-207 Calls, and VXX $20 and 19.50 Puts. However, if the VXX were to break its premarket high of 19.70, it would cause us to flip our targets back to the other side of the fence, so we’ll need to be extremely tuned in once the session gets moving.

*For those that didn’t catch yesterday’s reminder- we welcome any of our readers to get involved with our daily traders chats by sending a Skype contact request to ‘stocksumo’.

Avon Products, Inc. AVP

We’re going to place AVP on watch today as well, due to a number of factors. Setting aside the potentiality of an upcoming buyout of its North American business which has met with some resistance (View Article), AVP is setting itself up one heck of a chart. In today’s premarket trading the stock has breached the resistance line we identify on the following snapshot. There appears to be a good chance to see AVP add to its recent gains which have been fairly steady in recent weeks.

Despite public dissent from one of its large stakeholders, it appears that AVP will still attempt to move forward with their exploration of a proposed buyout (View PR), so it will be very interesting to track this play as that story continues to unfold.

Extended Watchlist:
KBIO, MKAU, HCTI, BCCI, AMBS, ABHI (Bottom-bouncer)

Blue Horseshoe Stocks: GROC, GDSI Recaps & More

Great Rock Development Co. GROC

During an uncertain time where others have been reticent to pull their heads out of the sand, we continue to stand and deliver. Jumping off of the page in Friday’s report was GROC which made a few appreciable swings on the day.

Following a solid 46% initial run from the .0085 low up to .0124, the stock came down to bounce off of the .0098 mark, and returned to .0115 (+17%). That preceded one final pullback to .009 before GROC ripped back to .012 (+33%) and brought the stocks cumulative intraday gain total to 96%

We had originally alerted the stock on Wednesday morning, and witnessed a low of .0055. From that mark, we’ve seen an overall move of 125% over a span of just three sessions from GROC.

Global Digital Solutions, Inc. GDSI

Another great call for us was GDSI, which had a heck of a solid session after being mentioned in Friday’s premarket report. We outlined the fact that it had just come off of a new 52-week low and it turned into another successful bottom-play.

From its low of .0016 which it recorded shortly before the lunch hour, the stock ran with strength into the close, ending the session at its high-of-day at .0025. That move was good for intraday gains of up to 56%, so cheers to any of our readers who were able to bag a nice profit.

We’ll have an eye peeled for GDSI again this morning, as is generally the case in a session following such a strong closing performance.

UVXY and VXX Options Recap

Our main point of focus on Friday was using the activity of the overall markets to leverage ourselves some nice opportunities with Weekly VXX $22.50-25.50 Calls and UVXY $48-52.50 Calls.

It wouldn’t have mattered which symbol, or which strike price in our target ranges at which traders chose to execute, because every single contract we specified provided a chance for a windfall.

The biggest gain opportunities in each set were the VXX $24.50’s which exploded on a 900% rip from .05-.50, and the UVXY $51.50’s which traded in a range from .52-2.70 for total possible intraday gains of up to 419%

AEterna Zentaris, Inc. AEZS

It’s been a few months since we last looked at AEZS, and we’re going to place it back on watch to kick off this new trading week, as the stock made an undoubtedly strong move on Friday, and closed at its high of day. That quilifies AEZS as a possible momentum play.

These present the opportunity both to ride any residual momentum, as well as position ourselves to strike on a dip-and-rip scenario, which often show their faces in situations such as this. So we’ll keep our heads on a swivel in monitoring AEZS moving forward.

Plug Power, Inc. PLUG

PLUG is an old-time favorite of ours that has made us enormous gains in the past. It’s been awhile since we lasted touched upon this one, as we were waiting for it to provide a solid signal that it was coming off of yearly lows, and over the past few sessions we’ve begun to see that.

PLUG has registered higher highs and higher lows for the past four consecutive sessions, so we’ll be monitoring the stock this week for continued progress on that front. As you can see on the included chart snapshot below, we have a RSI just cracking above the 50-line showing relative strength, and the MACD is looking quite bullish as well. There is a slight gap to fill on the chart around the 2.00-mark, and the next key resistance we’ll look to be broken will be the 50DMA of 2.13.

Extended Watchlist:
MINE, EMBR, IHSI, GDGI