Blue Horseshoe Stocks: Options Roundup & More

Options Recap

Facebook, Inc. FB – FB was cruising in the premarket yesterday in the wake of an earnings beat, and we signaled a range of contracts where we supposed the heaviest action would fall (FB Weekly $106-111 Calls). It would not have mattered which set of contracts traders chose to strike, because they all provided chances at hefty gains.

In every case, there was a big initial spike, followed by a dip-and-rip which added an additional intraday swing. The breakdown of those moves is as follows:

$106 Calls – 1st Swing: 2.77-4.70 (70%) – 2nd Swing: 2.37-3.60 (52%)
$107 Calls – 1st Swing: 1.60-3.70 (131%) – 2nd Swing: 1.60-2.70 (69%)
$108 Calls – 1st Swing: 1.40 – 2.89 (106%) – 2nd Swing: 1.00-1.80 (80%)
$109 Calls – 1st Swing: .88-2.07 (135%) – 2nd Swing: .58-1.12 (93%)
$110 Calls – 1st Swing: .49-1.42 (190%) – 2nd Swing: .30-.62 (106%)
$111 Calls – 1st Swing: .33-92 (179%) – 2nd Swing: .14-.33 (136%)

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Expedia, Inc. EXPE -The buzz over EXPE’s buyout of HomeAway, Inc. AWAY was enough to get it moving in yesterday’s premarket. Our corresponding options idea for this one was to track  EXPE Weekly $138-142 Calls and like FB, there was no losing pick within our specified range of contracts. Cheers to anyone that got in on the fun, as double-bag gains were possible across the board!

$138 Calls – Daily Range: 1.10-2.90 – Max Gain: 164%
$139 Calls – Daily Range: .65-2.18 – Max Gain: 235%
$140 Calls – Daily Range:  .55-1.65 – Max Gain: 200%
$141 Calls – Daily Range:  .46-1.13 – Max Gain: 146%
$142 Calls – Daily Range: .21-.70 – Max Gain: 233%


Weight Watchers International, Inc. WTW

Our regular readers will certainly recall our successful coverage of WTW as Oprah’s involvement was announced a few weeks back; we had monstrous success with our options selections, and even saw an amazing move from the stock itself. Our observed low on WTW was 10.76, and this morning we’ve seen it change hands for as much as 20.80.

With this impressive early morning gap-up, we’re going to want to jump back into the mix with another options idea. We’ll be monitoring the Weekly $18-20 Calls for potential daytrade opportunities on the dip-and-rip which is likely to occur.


Endeavor IP, Inc. ENIP

On the stock side of things, we included ENIP in our premarket extended watchlist yesterday and this super-subpenny play didn’t disappoint, offering up the chance at single-session double-bag profits!

From an early low of .0004, the stock surged toward the end of the session, reaching as high as .0009. That registered as an 125% intraday swing, and it came on more than three times the monthly average volume.


Extended Watchlist:
AEZS, ZSPH, HZNP, LEXG, VPRO, GSI, TTCM

Blue Horseshoe Stocks: ZSPH Takeover Rumors & More

ZS Pharma, Inc. ZSPH

We’ve noticed some abnormal activity coming out of ZSPH yesterday on the heels of supposed talks of a takeover by Actelion,Ltd (ALIOY). The stock had already been in a general uptrend since the end of August, and really took off on confirmation from the company that it had indeed entered into talks to possibly be taken over in what it referred to as a ‘strategic transaction’.

When stocks surge so rapidly on non-material news, there’s always a good chance for seeing a classic dip-and-style style formation on the chart, so that’s what we’re going to be on the lookout for in this case.

To help us leverage the activity in ZSPH to our greatest advantage, we’ll formulate a corresponding options idea to monitor for intraday strike opportunities. Out specific target range will be ZSPH Weekly $75-85 Calls. We had monstrous success with some of our other recent options ideas, we’ll look to ZSPH to help us finish out this holiday-shortened week on a high note.


Bottom Watch Plays

Net Element, Inc. NETE –

The NETE chart has caught our eye this morning as one with the potential to produce a promising recovery play. The stock is trading at relative lows, having just logged it’s annual bottom last month. There is also a clear-cut example of a double-bottom formation on this chart, so we’re going to tag this stock for extended observation.

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Great Basin Scientific, Inc. GBSN

We’ve been tracking GBSN in hopes of catching its eventual bottom, and as of today we’re still waiting. We don’t want to let it slip off of our radars, however, because the chance for a hefty rebound when solid support is ultimately established is very high. The chart has recently reached egregiously-oversold territory as we’ve pointed out below. We’ll look for it to begin building higher lows and kick off its recovery.


Amazon.com, Inc. AMZN – Options Idea

We also want to formulate a quick options idea for AMZN. The stock is trading way below analyst estimates, so we’re going to be tracking a little bit of a longer-term idea. We want to keep a close watch over the 10/16 $550 Calls.(Last traded @ 10.17)

In order for us to remain interested in those contracts, we’ll want to see AMZN maintain support no lower than 499.74 (50DMA). In the event that it fails to hold above that threshold, we’d need to roll our strike price down to the $525’s of the same expiration date.


Grillit, Inc. GRLT – Super Subpenny on Watch

We’ve also identified a few bullish characteristics on the GRLT chart. This super-subpenny play has the look of a stock that could possibly break out. If it can maintain its PPS at a level no lower than the 50DMA of .0004, we’ll keep this one on watch for potential move in forthcoming sessions.