Yesterday we brought a couple of fresh options ideas to the table, and in both cases, traders could have fared quite well in terms of single-session gains.
Sage Therapeutics, Inc. SAGE – Weekly $40 and $45 Calls
$40 Calls– Range: 5.40-7.80 – Max Gain: 44% $45 Calls – Range: 1.81-4.96 – Max Gain: 174%
Shire plc SHPG – Weekly $187.50-195 Calls
$190 Calls – Range: 3.90-5.90 – Max Gain: 51% $192.50 Calls – Range: 1.40-3.79 – Max Gain: 171% $195 Calls – Range: 1.30-2.01 – Max Gain: 55%
Cheers go out to any of our readers who were able to take advantage of these solid intraday moves!
Potential Bottom-Bounce Plays
This morning we’ve taken notice of a couple of stocks that are trading near recent relative lows, which have also begun to show some life this week.
The Female Health Co. FHCO – We like the look of the chart on this one, which is coming off a multiple bottom and just managed to crack through and hold support above its 50DMA. The next area of resistance appears to be the channel between its recent swing high at 1.45 and the 200DMA of 1.57.
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Nate’s Food Co. Inc. NHMD – This stock has appeared on our watchlist in the past, and today, we’re circling back around to it purely from the look of the chart. Several indicators are pointing toward the chance of some sizable upswings in sessions to come, so we’ll want to monitor the situation closely.
We’re going to want to see it get back above and hold the 200DMA at .0089 as support going forward.
Barracuda Networks, Inc. CUDA – On Friday, we had just caught CUDA coming off of a heavy earnings beat, and we signaled our interest in a couple sets of contracts in the options chain to correspond with the expected activity. Specifically the CUDA 07/15 $15 and $17.50 Calls. It was a good thing that we did, because what followed were some eye-popping gain opportunities!
The $15’s have now traded up from a low of 2.55 to a high of 6.53, for an excellent swing of 156%, while the $17.50’s have amazingly run from .60 to as much as 4.10, a huge 583% rip!
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Petroleo Brasiliero S.A. (Petrobras) PBR – We’ve drawn off of the PBR well countless times in the past, and our most recent idea, the PBR 07/15 $6.50 and $7 Calls (which we submitted on the morning of June 29th) has paid off with a couple of sizable swings.
In the roughly two weeks since we tabbed these plays for observation, we saw the $6.50 Calls run first from .30-1.07 (+256%), followed by a dip back to .35 and a rip back to 1.27 (+263%). The $7’s provided similar, yet even bigger action as they initially saw a move from .15-.69 (+360%), followed by a second from .14-.85 (+507%).
We expect the gains mentioned here to be extended as PBR is gapping up again this morning, and we may need to consider rolling up our strike prices to the $7.50 and $8 Calls as the situation dictates.
Gold Resource Corp. GORO
We also want to provide an update on another idea from the end of last week. We were circling back around to GORO on Thursday, a play we’d begun tracking two weeks prior from a low of 3.19.
Since our re-alert on Thursday, GORO has logged higher highs and higher lows in all three sessions. From Thursday’s low of 4.35 to yesterday’s high of 5.44 was a solid 25% upswing, and from our observed low of 3.19 (06/28), it marked a total increase of 71%
New Colombia Resources, Inc. NEWC – Special Report
The topic of this morning’s special report is New Colombia Resources, a company which interests us for a number of reasons, not least of which being the set-up of the current chart. But before we take a look at NEWC from the technical side, we’re going to go over various aspects of its diverse business that we also feel make this an attractive stock.
NEWC actually qualifies as both a medical marijuana and a mining play. It isn’t often that we find a company with a dual focus that has a solid foundation built for all aspects of its business, but that certainly seems to be the case here.
Coal Mining
In terms of its resource-mining projects, NEWC is focused primarily upon metallurgical coal reserves. Metallurgical coal is used for the production of steel, silicone, and all manner of other specialty metallurgical materials.
This spring, the company was approved for, and paid all required taxes on a 2900-acre mining concession by the National Mining Agency of Colombia (>>View PR). It added considerable acreage to the company’s already expansive metallurgical coal properties, including the La Tabaquera Project, which holds an estimated 17M tons of coal. Additionally, per a recent announcement, New Colombia was furnished with a Letter-of-Intent from a major Chinese construction company, which pledges upwards of $200M toward the development of the 2900-acre concession. (>>View PR)
The enormous new concession is also located less than 7 miles from the Ruta Del Sol, a new ‘mega-road’ which connects the Colombian interior to its coast, simplifying and economizing the transportation of raw materials for purposes of exportation.
In fact, most of the metallurgical coal that is imported and used in the US comes from Colombia. In certain areas of the eastern and southern US, it’s actually cheaper to import the material across the Caribbean from Colombia than it is to obtain and ship it overland from domestic sources, and NEWC has itself positioned to take advantage of this dynamic. The company believes its reserves to consist, at least in part, of what is known as Blue Gem coal, a high quality, desirable type found only along the KY-TN border here in the US, and in Colombia.
Medical Marijuana
The other major aspect of NEWC is its Sannabis subsidiary’s involvement in the cannabis sector, which as all of our readers are aware, is a burgeoning space that we value highly. The company’s interests are purely on the medicinal side of things, with no current plans to branch into the recreational market.
For the time being, their business in this arena is limited to Colombia, but there they offer a wide range of cannabis-derived products for medical marijuana patients, via their online store, and in select outlets across the country. These products include, but are not limited to, cannabis oil blends, relaxants, and pure cannabis extracts of both the Indica and Sativa varieties (>>View Sannabis Products).
Perhaps most impressive are the company’s profit margins on these products, which range from roughly 260-2100%. These figures are possible because of the company’s extremely low production cost on cannabis. At just over $33 a pound, NEWC has lower production costs than any US-based outfit possibly could. In fact, the costs associated with producing marijuana-based products is cheaper in Colombia than anywhere else on Earth!
The company will also be rolling out a book entitled Doctor Cannabis with the help of a branch of Grupo Planeta, the world’s largest spanish-language international publisher. The book will focus on the human body’s reaction to medical marijuana, and received contributions from Sannabis’ scientific advisor, Dr. Robert Melamede, Ph.D, with the dual purpose of both educating the public on the healing properties of marijuana, as well as bringing brand awareness to Sannabis’ product line.
CEO John Campo has stated his company’s intent to bring a new level of affordability to American medical marijuana markets with Sannabis’s 100% Colombian-grown products. We’ll be certain to stay tuned for future updates on this particular subject as well as everything else that NEWC has cooking at the moment!
NEWC Chart:
On top of the above-mentioned aspects, NEWC also has a solid chart that we’d like the look of regardless of the company’s backstory.
As you can see on the chart below, the PPS recently broke past the 50DMA(.017) and has held support above the 200DMA(.011) on all of its recent pullbacks. If NEWC were to retest May’s swing high of a nickel, that would represent gains of 150% from Friday’s closing price of .02. Even a retrace back to .03 would equate to a 50% move from the current level.
We’ve also provided a video presentation of the current chart for your viewing convenience:
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You can check out a clip from a recent feature of Sannabis that was all over the news in Colombia, here: Watch Video
Before we get down to our interests for today’s session, we wanted to give our readers a quick heads-up for Monday morning.
We’ll be presenting a special in-depth report on an intriguing cannabis stock with a diverse portfolio and an attractive backstory, so be sure to monitor your inboxes closely around 9:00am Eastern on Monday! The set-up on the chart should give us a great chance at kicking off next week on a high note.
Lot78, Inc. LOTE
Moving along to today’s report, we’ve got to provide an update on LOTE, which we’ve been tracking since Thursday of last week. At the time, the stock was trading as low as .0037, and the progress it has made since then has been nothing short of astronomical.
In fact, LOTE has pushed to new highs in each of the five sessions since we brought it to the table. Yesterday, it churned out its second biggest single-session move yet, running from the open at .013 up to .03, for intraday gains of up to 131%
The overall increase over our observed low from a week ago as of yesterday’s high comes out to 711%, so big cheers are in order for anyone who caught the wave! As long as the stock continues to record higher lows and higher highs, we’ll be keeping a close eye on it.
Fresh Options Ideas:
Bank of America Corp. BAC – With the markets ripping this morning off of impressive jobs numbers, we’ll be interested in checking out a couple of contracts in the BAC options chain. The stock itself is in a good position on the chart to continue its recent rebound, so we’ll be eyeing the BAC Weekly $13 and $13.50 Calls for possible daytrade chances. But remember what we always say, in terms of weekly options trading on Friday: For expert traders only!
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Barracuda Networks, Inc. CUDA – Following an impressive untraded-upon earnings beat yesterday afternoon, we are very keen to observe the activity in CUDA in sessions to come. We’re going to signal a couple sets of options contracts for tracking on this one as well, namely the CUDA 07/15 $15 and $17.50 Calls. These don’t expire until next Friday, so evaporating premiums won’t be an issue today.
SFEG, a stock we’ve been continuously tracking since Friday morning, has provided us with ample opportunities to profit in each session since then. The first day, a move from .0115-.0165 was good for gains of up to 43% To open up the week on Tuesday, it amazingly ran from .0194 all the way up to .044, an added move of 127%
Then in yesterday morning’s premarket report, we relayed to our readers that a dip-and-rip scenario could be in the cards granted the rapidity with which the stock shot up in the prior session. That’s exactly what came to pass, as SFEG peeled back slightly to an even .04 in the morning before gathering a head of steam that would carry it up to a new high of .065!
It went down in the books as an intraday gain of 62% and from our observed low of .0115 on Friday, it marked an incredible three-session swing of 465% Big cheers go out to anyone who took advantage of this momentum-mover! Stipulating that the stock must hold support at or above yesterday’s swing low of .04 to hold our attention, we’ll be on the lookout for further opportunities from this point forward.
Gold Resource Corp. GORO
Speaking of momentum, we’re going to circle back around to GORO this morning for an update on its recent progress. We flagged this play for observation just under two weeks ago and subsequently witnessed it trading as low as 3.19 , and in the last four sessions, the stock has done a good job of both recording higher lows and higher highs, as well as logging a higher trading volume each day.
From a low of 3.41 a week ago today, GORO hit a high of 4.69 yesterday afternoon, which marks a solid upswing of 38% Over the aforementioned observed low, it represented a total move of 47% in a matter of six sessions. We’ll be following this play for as long as it continues to exhibit signs of bullishness, building a higher base level of support in sessions to come.
Marinus Pharmaceuticals, Inc. MRNS
We also want to quickly draw some attention to MRNS, which gave a strong bottom-bounce signal yesterday in addition to having a simply monstrous gap on the chart to fill to the upside, and positive signals abounding. The RSI has just escaped heavily-oversold territory, while the MACD has just crossed in a bullish manner.
We’ll definitely want to keep this stock on our radars as we head into the end of this short week, and possibly into next week as well, since the filling of the gap you see below would mean gains of over 100% from the current PPS.
