Author: BHS

Blue Horseshoe Stocks: Options Trading Ideas

Apple, Inc. AAPL – Options
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On Wednesday we honed in on Apple’s big news, the addition of Burberry CEO Angela Ahrendts as its new chief of retail, and mentioned that we were monitoring the 11/01 $505 and $510 Calls. At the time those contracts were trading in the low $12’s, and $10’s respectively.

We were still watching on Friday, and were duly rewarded for our patience; the $505 Calls jumped nearly 50% from the lows in the $12-range to a high of 17.10. As for the $510’s, they went on to close at 14.50, a 45% increase from the low of $10.

This morning, AAPL is gapping up to the tune of more than 0.5%, which means these Calls should be pushed even deeper into the money. That would provide us with significant added gains.

Facebook, Inc. FB – Options

Much like AAPL, FB has become one of our favorite target vehicles for trading options contracts. If you recall, we successfully pursued over 750% in cumulative gains out of FB Calls the Friday before last, and in sticking with the same strategy last week as we pointed out on Friday, similar opportunities were presented in the Calls once again.

Extended Watchlist:
VPLM, TLAB, NTS, EWRL, ETEK, INVA, ENMD(coming off of recent lows)

Blue Horseshoe: PHOT, AAPL & FB Options

Growlife, Inc. PHOT

We brought PHOT back into the fold this week, stating that we wanted to see it hold support in the .05-.06 range. It did manage to do so; after touching a low of .057 earlier in the week, the stock went on to hit .069 in morning trading yesterday. That represents a move of 21% off of its bottom.

Yesterday’s volume exceeded that of the three previous days combined, and with that kind of momentum, we are on the lookout for possible carryover through today and into next week.

Options Trading

Apple, Inc. AAPL

On Wednesday, we stated our interest in the AAPL 11/01 $505 & $510 Calls. The $505’s last traded at 13.70 yesterday, and the $510’s at 11.45. Those figures mark excellent progress in these Calls since we’ve been paying attention.

We are going to want to continue to keep our eyes glued to the AAPL options chain as we approach the forthcoming iPad event and earnings release.

Facebook, Inc. FB

Facebook broke out to new 52-week highs this week, so we’re also focused on Call opportunities that may present themselves should the upward trend continue there.

CHGS, DUSS & Extended Watchlist

China GengSheng Minerals, Inc. CHGS
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After appearing on yesterday morning’s extended watchlist, CHGS came screaming out of the gate, running from .19 all the way up to .35 (+84%). The stock consolidated, and followed that initial run with two subsequent bounces, one from .24-.35 (+46%), and another from .28 to the day’s high at .39 (+39%).

A tip of the cap to anyone who was able to take advantage of some of the nearly 170% in cumulative intraday gains provided by CHGS, which can be seen on the following chart:

Dussault Apparel, Inc. DUSS
DUSS was the addition we made to the day’s watchlist in yesterday’s afternoon update. Following that alert, we saw a low of .0012, followed by a 25% run-up to the .0015 high-of-day where the stock closed.

As you can see on the annotated chart below, the next key area of resistance to watch for a break resides at .0024. A break past that point would put us in blue-sky breakout territory.

PLEASE NOTE: DUSS is a play that we selected from one of our daily scans. We were not compensated in any way to feature DUSS in our reports, however, owners of this newsletter did purchase two million (2,000,000) shares out of the open market.

Extended Watchlist:
KERX, GERN, ODP, BORN, FB, AAPL, XNY, RMTI