Blue Horseshoe Stocks

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

Blue Horseshoe Stocks: ENPH Review & More

Aytu BioScience, Inc. AYTU

We’ve done our best this week in reminding readers that our interest in AYTU was not a drill. Beginning from our initial alert in last Wednesday’s premarket report, the stock was exhibiting all the signs of a recovery play.

Yesterday we reiterated our interest for the second time this week, mentioning how the stock had already come a considerable distance from our observed low of .4118, and that it had picked up momentum on Monday, and that more gains could be in store.

We were right on the money as the stock extended its recent gains yesterday running to a new high of .76, which represents a five day swing of 85%

Enphase Energy, Inc. ENPH

Recently, we have had quite a few plays we’ve signaled within the past couple of months, exhibit really convincing, sustained uptrends, and ENPH is another one to put in that category.

While our most recent mention of the stock came on March 19th, in the midst of the current run as a reminder, our initial call came on February 28th. On that day, the stock saw a low of 3.07 and hasn’t looked back since.

Yesterday, ENPH surged to a new high of 5.58, marking a respectable one month run of 82% during which time volume has also been greatly increased.

Fresh Options Ideas – Both of the following are looking good today with untraded-upon earnings beats, so we’ve got a pair of fresh ideas to share this morning:

Lululemon Athletica Inc. LULU Weekly $83-85 Calls
Blackberry Ltd. BB Weekly $12.50 & $13 Calls

Extended Watchlist:
TOPS, ANW, IDXG, LHO, MARA