Month: May 2016

Blue Horseshoe Stocks: Fresh Options Ideas & More

Horizon Pharma plc  HZNP

Good morning traders! We’re back to kick off another trading week, and we’re going to start off by taking a look at an early mover in HZNP. The stock is gapping up moderately on the tail of a mixed-result earnings release, as a well as the announcement of a 5M share repurchase program.

We’re interested in signaling a pair of options contracts in the HZNP chain for observation, should the bullish sentiment we’re seeing here in the premarket boil over into the session.

Our targets are going to start out as the HZNP Weekly $14 and 15 Calls. Key resistance is currently sitting at the 50DMA of 16.15. In the event that HZNP were to test and breach that boundary, we’d look to roll up our strike price to the $16’s.

Yelp, Inc. YELP

YELP was included in our watchlist on Friday, and the stock produced a bullish performance on the day. We observed a 13% rise on the day from a low of 23.66 to a high of 26.75. That’s a respectable single-session move out of a stock in this price range.

Moving forward, we’ll be watching closely for YELP to maintain support above its current 200DMA of 23.55. That will act as our deciding point on the chart. Should the stock hold above that level on any pullbacks, we’ll look for possible swing-trade opportunities in YELP Weekly $24-27 Calls. Failure to hold that price point would signal us to flip to the bullish side and the $27-24 Puts.

Square, Inc. SQ

We also want to put SQ on a bottom-watch this morning after a post-market earnings call on Thursday precipitated quite a bit of fallout during Friday’s session. Despite a boosted outlook for the remainder of 2016 and big-time growth compared to the same quarter last year, SQ was absolutely hammered.

That makes it fair game for a potential rebound in coming sessions, so we’ll have it on our radar for that possibility. If it appears that a recovery is imminent, we’ll look to use in-the-money calls to leverage some nice gains out of this play.

Extended Watchlist:
JNSH, BTSC, TALK, GEVO, SSYS, PTX,

Blue Horseshoe Stocks: Options Update, Bottom-Watcher & More

Alibaba Group Holding, Ltd. BABA

First up this morning will be a review of yesterday’s options trading idea that we had for BABA as it came off of an earnings beat. The range of contracts we wanted to track were the BABA Weekly $77-81 Calls and while the stock didn’t make a big enough push to facilitate gains in all of them, we saw some nice action on the lower end. The $77-78’s each made two significant intraday swings that could have been traded upon for the following gains:

$77 Calls – Trading Ranges: 2.00-2.75 (+37%), 1.50-2.30 (+53%)
$77.50 Calls – Trading Ranges: 1.55-2.32 (+49%), 1.37-1.87 (+36%)
$78 Calls– Trading Ranges: 1.20-1.90 (+58%), .83-1.45 (+75%)

Nate’s Food Co. NHMD

There was no need to be patient with NHMD after we tagged it for observation just prior to the opening bell in yesterday’s premarket report. We noted that the stock had seen some momentum buildup; we were looking for a carryover and found it.

The sizable intraday swing came early in the session as NHMD ran from a low of .004-.0074, an 85% pop. It enacted a bit of a dip and rip into a close at .006. We’ll leave a space on our radar screens reserved to monitor NHMD moving forward, as volatile subpenny plays like this can often be good for daily flip opportunities.

JTH Holding, Inc. TAX – Bottom-Watcher

We’ve got an interesting chart setup in TAX, which as you can plainly see without the aid of annotation on the snapshot below, is currently looking egregiously oversold. Even as Liberty Tax was recently voted “Best of the Best” by Entrepreneur magazine(>>View PR) the stock has been taking a tremendous beating.

Over the past few sessions the stock seems to have been trying to find support in the low $11-range, and that is where we come in. We like to track stocks after they’ve been pounded into the pavement for possible rebound plays, as our regular readers knew very well. In the case of TAX, a return to its 50DMA at which it was trading less than a month ago, would mean gains exceeding 50% over yesterday’s closing price.

Extended Watchlist:
CCTL, PACD, CYTX, ATHX, MNGA, YELP

Blue Horseshoe Stocks: Earnings-Related Options Ideas

Earnings-Related Options Ideas

We’ve uncharacteristically neglected the options trading arena a bit this week, so this morning we’re going to start off by signaling a range of Calls in the chains of a couple stocks whose earnings have just been released.

Tesla Motors Corp. TSLA – Despite a miss on earnings released yesterday post-market, we’re seeing TSLA rebounding from its week-long slide in premarket trading this morning.

We’ll go ahead and formulate a conditional idea to correspond to the situation. Stipulating that the stock can hold support above the current 200DMA (225.98) on any pullbacks following the opening bell and break back above the 50DMA, we’re going to be monitoring the activity in TSLA Weekly $225-230 Calls for the possibility of some nice intraday upswing action.

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Alibaba Group Holding Ltd. BABA – In early trading BABA is gapping up after an earnings beat this morning which included a 39% boost in Q4 revs, and a 42% monthly rise in active usership via mobile platforms.

We’re going to signal a range of short-term calls for this play as well, zeroing in on the BABA Weekly $77-81 Calls for potential quick-strike trades.

Pot Stocks on Watch Again

There has been a lot of ebb and flow to general interest in cannabis plays, and it appears that we’re heading into another hot zone. We keep a continual watch over the entire sector, and there has been rising activity in many of the pot stocks that we track routinely.

The usual suspects to which we are referring are GRNH, MJNA, CBIS, TRTC, & CANV. We’ll be sure to keep each of them on closer watch in the sessions ahead.

Added Note:

xG Technology, Inc. XGTI, which we tracked from a low of .08 late last month and have been mentioning all this week, is seeing another early push today in the wake of some patent news(>>View PR) . Reserve a slot on your radars as the stock has reached a new high of .18 in the premarket today.

Extended Watchlist:
PBR, CHK, LGCY, NHMD(Momentum Mover)