May 2018 - Blue Horseshoe Stocks

Blue Horseshoe Stocks: Options Roundup

Dicks Sporting Goods, Inc. DKS – Recap

We cast a wide net with respect to the DKS options we included in yesterday’s premarket report, marking the Weekly $35-40 Calls for observation on the heels of the company’s earnings release.

While there were gains on the table for all ten of the contracts in our specified range, we won’t list all of them out, but rather just provide the bottom and the top of the range, and let our readers fill in the blanks.

The $35 Calls ran from 1.50-3.99 for an intraday move of 166% The $40’s traded up from .10-.45, representing an upswing of 350% Agiain, increasing, commensurate gains were available throughout our designated range of contract sets.

HP, Inc. HPQ – Recap

We also formulated an idea for the HPQ options chain in yesterday’s report, the HPQ Weekly $21-22 Calls, and were presented with some big single session moves there as well, including a five and a six-bagger!

This was another post-earnings idea, which is generally when we like to strike, at a time when price action and volatility are increased to significant levels. It provided for the following chances for profit:

$21 Calls – Range: .40-1.21 – Max Gain: 214%
$21.50 Calls – Range: .11-.76 – Max Gain: 590%
$22 Calls – Range: .05-.35 – Max Gain: 600%

Fresh Options Ideas – We’ll finish up this morning’s options-heavy report by including a couple of new sets of ideas:

Burlington Stores, Inc. BURL Weekly $141-144 Calls
General Motors Co. GM Weekly $40-42 Calls

Extended Watchlist:
AIPT, BCLI, NGL, NAK, TGA, SESN, VKTX

Blue Horseshoe Stocks: TNTR Recap & More

Tintri, Inc. TNTR

Our bottom call of TNTR yesterday morning to kick off the short week could not have been more perfectly timed. For more than two months the stock had been crushed down ever lower, reaching a new 52-week low once again on Friday.

We noted a significant swell in the amount of short interest in the stock, and now it appears as if the squeeze is on- the bottom bounce we said we’d be watching closely for happened right on cue and it was no small move. The stock saw its low at .36 and subsequently ran to .71, marking an intraday rip of 97%

We’re going to want to watch out for a more sustained recovery, and look to TNTR to establish higher lows over the coming sessions.

Dicks Sporting Goods, Inc. DKS

Dicks posted its quarterly report, and took off like a rocket in the premarket today, shooting up over 20% on a hefty earnings neat and raised guidance going forward.

We’re always in the mood to take advantage of a rapid spike in price action and volatility. We like to use options to leverage the activity to our benefit, and in this particular case, we are going to want to cast a wide net and keep a close eye on the DKS Weekly $35-40 Calls.
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Added Idea:
HP, Inc. HPQ Weekly $21-22 Calls

Extended Watchlist:
CODX, CRMD, NAK, CRM, OGEN, TXMD, UPL, BGI

Blue Horseshoe Stocks: FL Recap & More

Footlocker, Inc. FL – Recap

On Friday, we cited a big profit and sales beat on Foot Locker’s Q1 earnings report, noting that we have had good luck with the company’s earning chain in the past. Our designated targets were the FL 06/15 $52.50-55 Calls. Lightning struck for us once again as FL surged and our ideas took off.

The $52.50 Calls ran hard from a low of 1.30 and subsequently hit a high of 4.50. That works out to a daily rip of 246% Meanwhile, the $55 Calls went on a slightly more intense ride, trading in a range from .65-2.54 for total possible intraday gains of 291%

ArQule, Inc. ARQL

It was just this past Wednesday morning that we were mentioning our late April call on ARQL which allowed us to catch the stock when it was trading as low as 2.40. ARQL had, at the time of last week’s mention, breached into the four-dollar range, but after a fruitful finish to the week, we have to circle back to comment on its impressive new highs.

In its fifth consecutive trading day of posting higher lows and higher highs, the stock reached a new high of 5.29, pushing our one month observed increase on the stock to 120%

Tintri, Inc. TNTR

We also want to place TNTR on bottom watch as we kick off the short trading week, after noticing that the stock has been absolutely crushed in the past week. It had already been on a steady downward trajectory, but as you can see below, the selloff really kicked into high gear just last week.

We’ve also noticed a rapid rise in the short volume, accounting for more than 1.2M of the stocks total volume on Friday. With the stock already having been egregiously oversold, this type of scenario can often lead to a short squeeze, and we will want to be ready to ride TNTR on the way back up, if that occurs.

Extended Watchlist:
ABIO, SBOT, MYSZ, CVPR, LPL, KTOV, OLED, VPLM(News)

Blue Horseshoe Stocks: Options Review

Tiffany & Co. TIF – Options Recap

We wanted to take an opportunity to backtrack to our options idea from Wednesday, the TIF Weekly $114-117 Calls. We caught the stock on the heels of its earnings report, and the subsequent activity allowed for a good chance for us at the top of that range.

Our ideas got pushed so deep in the money, that the big winner turned out to be the 117’s. Those contracts started out on Wednesday from a low of 1.53, and as of yesterday had reached an impressive high of 8.24. That works out to a two-day swing of 439%

Footlocker, Inc. FL

We’ve had some good luck with the FL options chain in the past, and we’re going to place some contracts on watch today in the wake of the company’s big profit and sales beat this morning. Q1 earnings blew people away today, and as a result the stock is up considerably.

With no weekly expiration contracts available, we’re going to go out to the FL 06/15 $52.50-55 Calls, for potential quick strike trades.

Extended Watchlist:
QUIK, CDTX, CLWT, AVGR, OHGI, AVGR, PRPO

Blue Horseshoe Stocks Special Report!

Social Detention, Inc. SODE – Special Report

Good Morning Traders! Today, in lieu of our routine premarket reports, we have a special focus report on SODE. Social Detention is an up-and-comer that certainly has some things to sort out, but despite that, still has so many bright spots to its recent storyline.

Part of that story begins earlier this year with the acquisition of its namesake property, socialdetention.com– a social media platform for members of the $200 Billion/year corrections industry, from decision makers, vendors, and suppliers, to the facilities themselves. The company did not use stock or create any debt in the acquisition, and plans to generate revenue by setting up a marketplace to complement and augment the social platform.

In addition to this new direction, SODE also has a security and infrastructure engineering, estimating, project management and professional services business. That segment of its operations has been thriving, having been awarded multiple contracts in 2018 which allowed it to post record revenues last month for Q1, and assure shareholders that Q2 is on pace to continue that pattern. (>>View PR)

Mr. Robert P. Legg II, CEO of SODE, stated, “We are pleased with our progress but are simply building a base and will not be satisfied until we are a much larger and more profitable company. We have come full circle winning projects, completing profitable project and gaining customer references. With the upcoming trends in the infrastructure and security market I see no limit to our growth as we focus on the bottom line and rewarding shareholders.” (Source: Globe Newswire)

MORE NEW CONTRACTS

Holding true to its word so far, SODE has announced this week that its ELLA subsidiary has been awarded several projects in California. The projects consist of building security and infrastructure repairs. Combined Contract value is over $900,000, with work beginning this month, and will go on the books for Q2. (>>View PR)

LATE BREAKING NEWSALAMO, CA, May 24, 2018 (GLOBE NEWSWIRE) — Social Detention Inc. (SODE), recently announced that it has executed an agreement with DME Inc. to procure, perform and share profits on California Contracts. This partnership allows Social Detention Inc. to participate on proposals that are reserved for specific companies with certain classifications. The agreement is effective May 21, 2018.

The profit share is 50/50 and recognized as contract revenues are received. We anticipate the revenue for the next twelve months under this agreement to be $2-5m with profit of $600k to $1.5m and $5m to $10m in Year 2 with profit of $1.5m to $3m. (>>Full PR)

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SODE CHART:

In terms of the chart, we want to point out that there a clear pattern of establishing higher lows over the past few months, and the stock has also shown that it’s more than capable of making significant swings in a short amount of time.

It is this volatility that gives us hope for the SODE chart; the stock has made three significant moves in as many months. In March it ran from .0311-.1239 (+298%), then in April it ran from .035-.17 (+386%), and finally this month it made a move from .0711-.14 (+97%).

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When all is said and done, SODE may have some cleaning up to do in terms of its share structure and current spread, but it is generating revenue while making good headway with its new projects, and has more than enough going on to pique our interest.

Not for nothing, but the company has also previously expressed interest in exploring opportunities in the cannabis sector as well. For all these reasons, we’re going to be watching SODE closely from here on out.
_________For more info on SODE visit www.sodetention.com