May, 2016 | Blue Horseshoe Stocks

Blue Horseshoe Stocks: Winning Options Plays & More

Options Recap

Both of our options ideas from yesterday’s morning report ended up providing us with a chance at sizable single-session gains.

Canadian Solar, Inc. CSIQ

We caught CSIQ in the unique position of having just registered a new 52-week low in the previous session, and having its earnings beat expectations yesterday, so jumping on CSIQ Weekly $16.50-18 Calls ended up being a sound strategy right from the outset. The impressive intraday moves were as follows:

$16.50 Calls – Trading Range: 1.20-1.76 – Max Gain: 47%
$17 Calls – Trading Range: .87-1.50 – Max Gain: 72%
$17.50 Calls– Trading Range: .30-.97 – Max Gain: 223%
$18 Calls – Trading Range: .27-.82 – Max Gain: 204%

Macy’s Inc. M

We went bearish on Macy’s yesterday, partly due to the overall downtrend the stock has seen in recent weeks, and as a reaction to yesterday morning’s disappointing earnings call. In this case our target range was the M Weekly $36-34 Puts and hefty gains were available across the board, including a big triple-bagger in the $34’s.

$36 Puts – Trading Range: 1.83-4.37 – Max Gain: 139%
$35.50 Puts – Trading Range: 1.40-3.79 – Max Gain: 171%
$35 Puts– Trading Range: 1.00-3.60 – Max Gain: 260%
$34.50 Puts – Trading Range: .83-2.88 – Max Gain: 247%
$34 Puts – Trading Range: .50-2.58 – Max Gain: 347%

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Fresh Ideas: To throw some other options ideas into the mix this morning, we’re going to be adding Monsanto Co. MON Weekly $102-106 Calls and Jack in the Box, Inc. JACK 05/20 $70 and $75 Calls to our track-list.

Cerebain Biotech Corp. CBBT

We put CBBT on our radars last Tuesday after noticing some increased activity in the stock. Since our mention, subsequent to which we observed a low .53, we’ve seen a good bit of progress leading up to yesterday’s high of 1.25. That’s an overall move of 136%

The high came just prior to the closing bell, at which CBBT held a PPS of 1.20 so we’ll continue to monitor the situation carefully. We’ve had success recently with low-float, low-volume plays, and CBBT fits that bill to a tee.

Extended Watchlist:
FTPM, MRNA, BKCT, LXU, ZIOP, CCXI

Blue Horseshoe Stocks: Bottom-Watchlist, Options & More

Fresh Bottom-Watchlist

Our morning scan yielded up a couple of stocks trading at or near their relative bottoms that we want to put on the radar this midweek.

Canadian Solar, Inc. CSIQ

CSIQ began showing some life yesterday after it briefly touched its lowest PPS since last summer and began to rebound into the close. This morning, a Q1 earnings beat is fueling a gap-up into the $17-range. We’ll be on the lookout for quick-strike options trades with the CSIQ Weekly $16.50-18 Calls. Especially if a dip-and-rip occurs at the outset, we could really see some significant intraday swings out of contracts in that range.

Sequenom, Inc. SQNM

SQNM is interesting as a bottom-watcher on a couple of different levels. Not only is it extremely low-priced for a NASDAQ play at just over the exchange minimum PPS of a dollar, but it has also seen an influx of insider buying this week. We’ll have to stay wary as chart indicators suggest the stock may yet need to search out its ultimate bottom, but we’ll be ready for a rebound at any time in coming sessions. It could come quickly in this case, so keep your eyes peeled.

Macy’s Inc. M – Options Idea

We’ve also got our eyes on Macy’s this morning, which has been on a fairly continuous downslide for the better part of three weeks, and is getting kicked hard again in premarket trading this morning.

The company tempered its guidance for the remainder of the year, and missed estimates on sales considerably in this morning’s earning call. We’re going to look to turn the bearish sentiment surrounding the stock at the into a possible boon for ourselves. To do this we’ll look to the M Weekly $36-34 Puts for possible daytrades and/or swing trades into week’s end.

Extended Watchlist:
APRE, ENGA, GEQU, SYNC, ESI, ASM, ACLS(Insider Buying)

Blue Horseshoe Stocks: HZNP Options Update & More

Horizon Pharma plc HZNP

Our first idea of the week in yesterday’s premarket report, which was to track the HZNP Weekly $14 and 15 Calls, ended up paying instant dividends. HZNP was coming off of its earnings call as well as highlighting a new 5M share repurchase program.

Both of our targeted sets of contracts experienced significant intraday swing action which traders could have utilized for solid single-session gains. The $14 Calls ran impressively from a low of .88 to a subsequent high of 2.15, for a 144% rip. The $15’s put up a pleasing performance of similar magnitude, trading in a range from .60-1.33, for total possible profits of up to 122%

We identified 16.15 as an indicating point, the breaching of which would signal us to roll up our strike price to $16. That still remains true as we continue along through the week.

Aperture Health, Inc. APRE – Update

We want to provide an update this morning on the recent progress of APRE, which our regular readers will recollect was a point of focus for us beginning a couple of weeks ago. We’ve tracked it over several swings, commenting on the stock’s ability to make volatile moves to the upside. It continues to demonstrate this ability over recent sessions, wherein we’ve observed quite a rush of momentum.

From last Wednesday’s bounce-point of .0188, we’ve now seen a swing of 165% as of yesterday’s new high of .0499 and the stock recorded its highest volume since November. Presently, indicators on the chart seem to be ripe and ready for the possibility of even higher highs. The next key areas of resistance following a nickel are sitting at .08 and .115.

You may also view the highlights of the chart on the following video presentation:

Extended Watchlist:
CCTL, ISLT, ALXA, NOK, CCXI