Blue Horseshoe Stocks: SBUX Success & More

Starbucks Corp. SBUX – Recap

We formulated some options ideas for Friday morning’s premarket report, and among them were the SBUX Weekly $66-67.50 Calls. Continuing a trend that we carried throughout the week, we once again struck upon multi-bag gains off of an earnings related play. This type of trade has become one of our go-to moves for this very good reason. We urge any skeptics to rifle through our blog and check our record on this. We believe our success rate is unparalleled.

$66 Calls – Range:.65-1.65 – Max Gain: 154%
$66.50 Calls – Range: .40-1.35 – Max Gain: 238%
$67 Calls – Range: .22-.80 – Max Gain: 264%
$67.50 Calls – Range: .10-.49 – Max Gain: 390%
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We also had the WDC Weekly $43.50-45 Calls in Friday’s report, and despite the fact that only the $43.50’s ended up being in play, the potential gains they afforded traders were exceptional. They traded up from a low of .03 all the way up to .26- a move of 767% on the day.


Caterpillar, Inc. CAT

We’ll once again look to a premarket earnings release to provide us with the impetus for a fresh idea this morning. Caterpillar missed on profits and issued unimpressive guidance, as the company reported disappointingly low demand, specifically in the Chinese market.

We are going to take a bearish view on this for the near-term, and put the CAT Weekly $132-128 Puts on watch to kick off the fresh trading week.


Extended Watchlist:
AVCO, TEUM, SUPN, OGEN, RBZ, BLPH, BW, IAG

Blue Horseshoe Stocks: SBUX Options & More

OPTIONS RECAP

Yesterday was a day for options, with a whole calendar full of earnings reports, and we formulated a couple of fresh ideas in LUV and MKC, going bullish and bearish, respectively. Both sets of contracts produced really good opportunities for intraday gains.

Southwest Airlines Co.

LUV Weekly $52-54 Calls

$52 Calls
 – Range: 1.25-2.63 – Max Gain: 110%
$52.50 Calls – Range: .99-1.90 – Max Gain: 92%
$53 Calls – Range: .56-1.85 – Max Gain: 230%
$53.50 Calls – Range: .40-1.25 – Max Gain: 213%
$54 Calls – Range: .20-1.00 – Max Gain: 400%

McCormick & Co. Inc.
MKC 02/15 $125 & $120 Puts
$125 Puts – Range: 3.11-5.51 – Max Gain: 77%
$120 Puts – Range: 1.51-1.91 – Max Gain: 26%
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FRESH IDEAS:
SBUX Weekly $66-67.50 Calls*
WDC Weekly $43.50-45 Calls*

*Please do not attempt to trade weekly options on a Friday unless you an advanced level trader with disposable funds.


Briggs & Stratton Corp. BGG

We want to close things out this week by commenting on Briggs & Stratton’s gap down to its lowest PPS since the the early 1990’s. While it may see more short term losses first, we still want to radar this as a bottom-watch play.


Extended Watchlist:
DBVT, AYTU, MRIN, TTNP, PIR, CAPR, ACHV

Blue Horseshoe Stocks: Options Winners & More

OPTIONS WINNERS

We introduced three earnings related options ideas in yesterday morning’s premarket report, each with a range of contracts in their respective chains that we found enticing.

We got fantastic results from the vast majority of the contracts we were tracking. Two of the three ideas yielded several opportunities for multi-bag intraday gains.

International Business Machines Corp. IBM
Weekly $130-134 Calls

$130 Calls
 – Range: 1.74-5.30 – Max Gain: 205%
$131 Calls – Range: 1.50-4.30 – Max Gain: 187%
$132 Calls – Range: .43-3.75 – Max Gain: 772%
$133 Calls – Range: .58-3.10 – Max Gain: 434%
$134 Calls – Range: .38-2.45 – Max Gain: 545%
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The Procter & Gamble Co. PG
 Weekly $93-95.50 Calls

$93 Calls – Range: 1.35-3.33 – Max Gain: 261%
$93.50 Calls – Range: 1.22-2.8 – Max Gain: 530%
$94 Calls – Range: .90-2.62 – Max Gain: 382%
$95 Calls – Range: .48-1.77 – Max Gain: 506%

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Logitech International, Inc. LOGI

We also published a longer term options idea in our report on Tuesday morning, signaling the LOGI 02/15 $34 & $35 Calls for observation, and we’ve got an update on those plays as well, which have also turned into multi-bag runners this midweek.

The $34 Calls have thus far traded up from a low of .85 to a high of 2.40 for a gain of 182%, while the $35’s have gone from .55 to 1.65- an increase of 200% With three weeks remaining until expiration we can continue to keep an eye on these for the possibility of higher highs.
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Fresh Ideas:
Southwest Airlines Co.

LUV Weekly $52-54 Calls

McCormick & Co. Inc.
MKC 02/15 $125 & $120 Puts


Extended Watchlist:
ADIL, TXT, UCTT, ROX, INO