Blue Horseshoe Stocks

Blue Horseshoe Stocks: SPY, CHFS & More

SPDR S&P 500 ETF (SPY)

We want to start things off today by looking to take advantage of the big rebound in the markets yesterday. When we want to play the markets as a whole, we generally look to the SPY options chain, and that’s what we’re going to do today as well.

We are seeing a significant gap up this morning, and are going to be looking for a classic dip-and-rip scenario due to profit taking. Our targets are going to be the SPY Weekly $264-266 Calls provided that support can hold above this morning’s premarket low of 263.56 on any pullbacks in order to remain interested.

CHF Solutions Inc. CHFS

We also want to highlight CHFS this morning as a possible bottom play. The stock is gapping up in the premarket past its 50DMA, and there is a massive gap on the chart to the upside from just under $5 to just under $8.

We’re going to put CHFS, which prior to today had already been approaching heavily oversold territory, on watch over the next few sessions for the possibility of a more sustained rebound.

Cronos Group, Inc. CRON

We’re getting a strong bottom bouncer signal from CRON as well this morning, and we wanted to highlight this chart also.

CRON is currently exhibiting most of the things we look for in a bottom play, and we’re excited to see where it could go in the near term, as it looks like there could be some serious upside here.

Extended Watchlist:
FNSR, INNT, SPOT, TOPS, FNJN, GMS, NETI, AYTU

Blue Horseshoe Stocks: Cannabis Roundup & More

Cannabis Roundup

We wanted to take some time out this midweek to get back to cannabis, the rapidly growing industry that we’ve always said we felt has as much or more potential than any other out there. The first quarter of the 2018 calendar year was rather low key, but with some major cannabis dates coming up, we wanted to sharpen our focus on the sector.

The 04/20 Holiday is generally a time when you see heightened visibility, and an influx of sales for recreational marijuana businesses. It’s the “Super Bowl” for many of these businesses, which will see their highest customer volume of the year.

It’s a time of increased awareness in the investment community for the space as a whole, and that’s why we wanted to refresh our running watchlist of pot stocks on our radar:

As for the ones based here in the U.S. some of our favorites (in no particular order) have been: OWCP, AGTK, HEMP, SGMD, SING, GRNE, GOHE, MCOA, MCIG, POTN, PNTV, RMHB, CANN and CBIS.

We also have July to look forward to, which marks the nationwide legalization of recreational marijuana in Canada, where some of the most impressive cannabis companies, like ACBFF and APHQF reside. Other notable Canadian players include ATTBF, GLDFF, GLNNF, NXTTF, MRRCF, SPRWF, and CRON.

Facebook, Inc. FB

We started off the week on Monday by signaling some options ideas, the FB Weekly $155-160 Calls. Despite a terrible start to the week for the markets as a whole, yesterday’s bounce-back helped began to provide us with the kind of moves we were looking for out of those plays.

In fact, each of three contracts in our designated range yielded the chance at multi-bag gains yesterday, with the following moves:

$155 Calls – Range: 1.55-4.27 – Max Gain: 175%
$157.50 Calls – Range: .90-2.75 – Max Gain: 205%
$160 Calls – Range: .49-1.69 – Max Gain: 245%

Extended Watchlist:
WLB, ASTC, HCC, EGO, TCAP, AQMS

Blue Horseshoe Stocks: OREX Recap & More

Orexigen Therapeutics, Inc. OREX

On a day like yesterday, when the markets take an unexpected and brutal bath, it always helps to find a trend-bucker. Fortunately for us, all was not lost because we had included OREX on our watchlist in our premarket report.

Even as most other stocks wavered under the intensity of yesterdays bearish push, OREX ran from a daily low of .23 to a high of .39 for a 70% intraday run. It also closed with strength at .34, not too far below the area of a massive gap on the chart. We’ll definitely want to continue monitoring OREX, as even a partial filling of said gap would produce further gains of a significant magnitude.

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Bottom-Watch Plays

While we’re on the subject of bottom plays, we’re going to add both of the following to our working watchlist, as each one is extraordinarily oversold at the present time.

ReShape Life Sciences, Inc. RSLS
MoneyGram, International, Inc. MGI

Extended Watchlist:
AMPE, DFFN, CGEN, VATE, PLPL, CANB

Blue Horseshoe Stocks: Options Review & More

Lululemon Athletica Inc. LULU – Options Review

We wanted to start things off this morning by doing a review of our main topic of focus toward the end of last week, the LULU options chain. We had signaled the LULU Weekly $83-85 Calls on Wednesday, and saw some very nice moves ranging from 180-295% that first day. They finished off the short week nicely as well.

The following is the updated log of the overall two-day gain opportunities we observed after the stock once again went bullish during Thursday’s session. The range of potential gains was extended considerably.

$83 Calls – Range: 1.60-6.33 – Max Gain: 295%
$83.50 Calls – Range: 1.25-5.75 – Max Gain: 360%
$84 Calls – Range: 1.20-5.28– Max Gain: 340%
$84.50 Calls – Range: 1.00-4.69 – Max Gain: 369%
$85 Calls – Range: .82-4.33 – Max Gain: 428%

Facebook, Inc. FB

With a strong finish to last week by the markets as a whole, a lot of the big name stocks saw a turnaround after several weeks of difficulty, and chief among those was Facebook. We like the potential for a more sustained recovery here, especially if the markets continue their bullish trend. We’re going to keep tabs on the FB Weekly $155-160 Calls.

Extended Watchlist:
ANY, ADAP, CVLT, CLWT, IPAS, OREX,

Blue Horseshoe Stocks: LULU Recap & More

Lululemon Athletica Inc. LULU – Update

We signaled a range of calls in the LULU options chain in the wake of the company’s earnings beat yesterday morning, and we were met with some fantastic opportunities at huge single-session gains.

Every one of the five sets of contracts, the LULU Weekly $83-85 Calls, produced a shot at double-bag gains on the day, which were as follows:

$83 Calls – Range: 1.60-4.50 – Max Gain: 181%
$83.50 Calls – Range: 1.25-4.15 – Max Gain: 232%
$84 Calls – Range: 1.20-3.80– Max Gain: 217%
$84.50 Calls – Range: 1.00-2.90 – Max Gain: 190%
$85 Calls – Range: .82-3.24 – Max Gain: 295%

With such solid moves in just one day, LULU doesn’t owe us anything, but we’re still going to roll up our potential strike range and monitor the Weekly $85-86 Calls* as we finish out this short trading week.
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Fresh Options Idea:
Constellation Brands, Inc. STZ Weekly $222.50-230 Calls*

*Do NOT trade weekly calls on the last day of the week unless you are an expert level trader!

Elev8 Brands, Inc. VATE

As you can see from our commentary on the annotated chart below, we’re interested in the setup of the VATE chart at the moment. The stock just began to consolidate off of a sizable surge that had persisted for most of this month.

We’re going to put it on bottom watch, and look for an eventual rebound in the event it can maintain support at or above the .05-mark.

Extended Watchlist:
AYTU, AQMS, ESES, PTCT, CPRX, MARK, MYSZ. RAS