Month: February 2015

Blue Horseshoe Stocks: PCLN, EXPE Recaps & More


Yesterday’s Options Ideas
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The Priceline Group, Inc. PCLN– The buyout of Orbitz by Expedia yesterday seemed to cause a ripple effect throughout the travel-booking sector yesterday, with many similar stocks making strong performances on the day.

The contracts that we proclaimed our interest in for PCLN were the the $1065-$1085 Calls, and with PCLN rising as high as 1102.26, substantial profits were there for the taking.

The $1065 Calls made an excellent 140% move from a low of 15.04 all the way to 36.20, while the $1085’s shot from  4.50 to 17.15 in a huge intraday increase of 281%

Expedia, Inc. EXPE – As far as EXPE itself, our premarket idea of the $86 Weeklies yielded an excellent opportunity as they moved up from 1.50 to 5.77, a 285% spike.

Those traders who chose to strike a bit closer to the money could have scored big with the $88 Calls as well, which traded in a range from .45-2.95 (+555%)

More New Ideas

We’ve done so well with options calls these past few weeks that there’s no point in stopping now! We’ve got a couple of new ideas to radar this morning in the web security business.

Both stocks are gapping up today, so we will be on the lookout for dip-and-rip scenarios to facilitate potential trades in the following:

CyberArk Software, Ltd. CYBR – With CYBR, we’re going to start off looking at the $50 Calls, which closed yesterday at 1.70, and the  $55 Calls which closed at .60.

FireEye, Inc. FEYE – For FEYE, we’ll want to monitor the $39.50, $40, and $40.50 Calls (Closed at .55, .35, and .15 respectively.)

Extended Watchlist:
ARIA, CYTK, FXEN, GDP, HK, GEVO, LEI

Blue Horseshoe Stocks: New Options Ideas & More

PepsiCo, Inc. PEP

Our first order of business this morning is to pat ourselves on the back for yet another perfectly-timed options idea yesterday. Our hunch that the PEP earnings beat would help us score some nice profits paid off almost instantly.

To refresh your memories on that report, we specifically outlined $99, $99.50, and $100 Weekly Calls for daytrading opportunities, and the 02/20 $102 Calls for a little bit of a longer-term possibility. Each and every one of those contracts made a great move as PEP broke through the $100-mark.

Here’s a breakdown of the gains that were possible on the day:

$99 Calls – Range: .62-1.77 – Max Gain: 185%

$99.50 Calls – Range: .46-1.23 – Max Gain: 167%

$100 Calls – Range: .33-1.00 – Max Gain: 203%

02/20 $102 Calls – Range: .20-.37 – Max Gain: 85%

PEP has a strong outlook as well, remember, they just initiated a three-year $12B share buyback program, so we wouldn’t be surprised to see Pepsi’s name come up in future reports. Stay tuned!

New Options Ideas

The Priceline Group, Inc. PCLN

PCLN is the next company we’re looking at on the heels of an earnings beat. We want to milk this earnings season for all its worth, and think we’ve done an excellent job of it thus far.

The range of contracts that we are interested in on the PCLN options chain are the $1065-$1085 Calls ( Yesterday the $1065’s closed at 6.10, and the $1085’s closed at 1.42)

Expedia, Inc. EXPE Impending Buyout of Orbitz Worldwide, Inc. OWW

With EXPE buying out OWW, we want to float another couple of ideas to take advantage of the excitement.

For EXPE, we’ll be monitoring Calls in the range of $83-86, and as far as OWW goes, our interest lies in the $9-11 Call range.

RadioShack Corp. RSCHQ

Our continual coverage of RSHCQ this week yielded potential gains for the third consecutive session yesterday. We brought the stock to our reader’s attention on Monday, at which point folks could have entered the mix for as low as .1251/share.

The stock has set a new high each day since, with yesterday’s trading range running from .185 up to a high of .25. That marked an intraday gain of 35%, and an overall increase of 100% from Monday’s observed low!

Extended Watchlist:
CSCO, TRIP, IMTV (Potential Bottom Play, Interesting News Out)

Blue Horseshoe Stocks: RSHCQ Recap, FLSR, PEP Options & More


RadioShack Corp. RSHCQ
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Our close coverage of RSHCQ has really come through for us as the stock performed very well on Monday and then again yesterday. Our initial alert came at a low of .1251 on Monday morning.

Yesterday the stock made its way up from a daily low of .1461 all the way up to .2145. That was an intraday spike equaling 47%, and measuring from Monday’s low, an overnight increase of 71% so cheers go out to any of our readers who were following this play to some fantastic short-term gains!

As we stated in our previous reports, we plan to keep a close eye on Radio Shack as the company deals with the many complexities of Chapter 11.

New Options Ideas

PepsiCo, Inc. PEP 

In the spirit of taking as much advantage of the current earnings season as possible, we have continued to scour for potential options trading opportunities on earnings beats. PEP is standing out on our radar screen this morning, with Wall St. expectations having been exceeded.

PEP is showing a healthy chart currently in an ascending wedge pattern, and the stock is in the process of breaking all-time highs so we’re also entering blue-sky territory with this one.

Along with its Q4 figures, Pepsi also revealed that it would be initiating a share buyback program to run through 2018 where the company intends to buy back up to $12B of its own stock, which bodes well for the long-term health of the beverage and snack giant. >> View PR

To potentially take advantage of the current conditions with PEP, we’re going to be looking at Calls in the $99-100 range. Yesterday the $99’s closed at .62, the $99.50’s at .46, and the $100’s at .33. After what we expect will be a significant gap-up followed by some measure of profit-taking we will be looking to get ourselves positioned for what could be a strong rebound in those contracts.

We can also keep watch over the Feb. 20th $102 Calls (Last Trade: .23) for a potential swing-trade into next week.

First Solar, Inc. FSLR

Yesterday upon receiving word that Apple, Inc. had negotiated a solar deal with FSLR worth nearly $850M, FSLR went crazy, running into the close and continuing to climb in after-market trading as well as gapping up in today’s premarket action.

As a result of these circumstances, we’re going to be monitoring the FSLR $48 Weekly Calls (Closed 1.51) for what has the potential to be a very nice, rapid gain opportunity.

Alibaba Group Holding Ltd. BABA – Reminder

We also want to take a minute to reiterate our longer-term options strategy regarding BABA.  Yesterday we outlined the March 20th $95 Calls (Closed: .85)  We could see those open a bit higher today as BABA is looking like it wants to gap up to slightly this morning.

Extended Watchlist:
AERO, AKAM, NVIV, LGBI