Month: July 2017

Blue Horseshoe Stocks: Cannabis Sector Heating Up Again

Cannabis Comments

We got head-faked a little bit in terms of the cannabis sector in the past year or so. Leading up to last fall, anything even remotely tied to marijuana was going through the roof, with seemingly no end in sight. Then a regime change in Washington led to the appointment of self-avowed cannabis hater Jeff Sessions to the head of the DOJ. That led to a considerable cooling of what was previously the hottest market sector.

That being said, it has been business as usual for companies operating in the space in places that have taken the step of ending prohibition. Growth is happening all around, and the investment community has taken notice. The cannabis sector is showing signs of heating up once again, so we want to return to some of the plays we’ve covered in the past and highlight a few that could stand to see some good moves in the days and weeks ahead.

Dewmar International, Inc. DEWM – We just signaled our interest in DEWM in Friday morning’s premarket report, and the stock made a solid two-session swing. From Friday’s low of .0108 to .0163 yesterday, marking a move of 51% We’ll want to continue to track its movements,particularly after this morning’s news.

DEWM announced today that it filed a provisional patent with the US Patent and Trademark Office for the treatment of lung cancer with cannabinoids, so that’s going to be another interesting storyline to follow with respect to DEWM.
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Also going on our refreshed cannabis watchlist of previously tracked stocks will be PNTV, POTN, MCIG, MCOA, and TRTC.

Netflix, Inc. NFLX – Options

We’re always looking for a good post-earnings options play and we may have one with NFLX this morning. Up 10% in premarket trading on a solid beat, we’re going to be looking for a potential dip-and-rip scenario that could lead to some hefty intraday moves. Our targets are going to be the NFLX Weekly $172.50-180 Calls.

Extended Watchlist:
CAPR, MBRX, MDGS, NVAX, OPK OPCO, TTOO, RAD

Blue Horseshoe Stocks: Kicking Off a New Trading Week

Ocean Rig UDW Inc. ORIG

We’ve had ORIG on bottom-watch for just under a month now, as the stock was undergoing a consolidation that appeared unsustainable. It seemed just a matter of time before it began to rebound, so we were monitoring it for a signal and got one in a big way on Friday.

ORIG came off its newly-registered annual low of .12 and traded up as high as .237, a 98% rise which occurred on ten times the monthly average volume. More importantly, the stock managed to crack through its 50DMA at .19, and held above that mark with a closing price of .20.

We’re going to want to continue to track ORIG, looking for the registering of higher lows off of its recent bottom. The RSI is also screaming toward the power zone, so we’ll hope to see ORIG string together a multi-day run.

Camber Energy, Inc. CEI

Speaking of stocks that are gaining strength, CEI has been in a pretty convincing ascending wedge pattern recently, routinely recording higher highs and higher lows off of its annual lows established late June.

We’ve pointed out on the chart below where the next key areas of resistance are, so we’ll want to track CEI to see if it can maintain its current trajectory and make a run at those areas on the chart.

Extended Watchlist:
TEUM, ACRX, MDGS, NPHC, MTBC, CPST, HEAR

Blue Horseshoe Stocks: Options Roundup & More

Options Roundup

We had good fortune with our fresh options call yesterday, so today we’re going to be recapping the total possible gains on those plays, as well as unearthing a couple of fresh ideas to add to the mix as we close out this trading week.

Delta Air Lines, Inc. DAL – Recap – Our inkling on DAL yesterday morning was to go bearish after a disappointing earnings call for the airline, with the DAL Weekly $55.50-53.50 Puts. We were not disappointed with our decision to do so, as those DAL puts went on to log the following double and multi-bag intraday moves for us before lunch hour was over:

$55.50 Puts – Range: .76-1.60 – Max Gain: 110%
$55 Puts – Range: .48-1.05 – Max Gain: 119%
$54.50 Puts – Range: .25-.65 – Max Gain: 160%
$54 Puts – Range: .13-.36 – Max Gain: 177%
$53.50 Calls – Range: .03-.17 – Max Gain: 466%
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Advanced Micro Devices Inc. AMD

Speaking of bearish options ideas, we want to enter another fresh set into the log this morning in AMD. This stock trades very cyclically, and from a technical perspective, looks as if it could continue to lose ground after a reversal this week. We’re going to place the AMD 07/21 $14-13 Puts on watch into next week in the event that our impression of this play is correct.
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BJ’s Restaurants, Inc. BJRI

Lastly on the options front, we are going to signal a range of extended-term calls on BJRI, which has a pretty attractive bottom setup on the chart at the moment. To take advantage of a potential sustained rebound, we’re going to be monitoring the BJRI 08/18 $35 & 40 Calls.
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Bonus Idea: NTNX 7/21 $20-25 Calls

Diana Containerships. Inc. DCIX

DCIX went into a full-on nose dive recently after it was announced that the company would be taking out roughly an $85M loan to settle a monster pile of debt, and the investment community did not take the news well.

The stock has subsequently fallen to new all-time lows, and that’s where we come in. We’re always looking for stocks like this to put on bottom-watch. Being egregiously oversold, DCIX may yet have a bit further to fall, but we’ll want to be ready for a reversal at any time. The resulting bounce-back could be considerable.

Extended Watchlist:
NPHC, DEWM, DOLV, FRO, JCP, CHFS, PIXY, HPJ, CTIC,