Blue Horseshoe Stocks: New Options Ideas, Bottom-Watchers & More

EffTec International, Inc. EFFI

EFFI was the standout play from yesterday’s daily report; we gained interest in this familiar play after noticing some abnormal volume and a PPS spike during Friday’s session.

The momentum it had built up was able to carry over into this new trading week, as the stock made its way from a low of .004 to .0056. It marked an intraday swing of 40% and puts us on alert for the possibility of further advances.

In terms of the technicals, the RSI just cracked into the power zone and the MACD is still bullish in appearance, with some serious upward divergence currently in effect. Provided the stock can continue to register higher lows on its way up, we’ll reserve space for it on our working watchlist.

RAIT Financial Trust  RAS

RAS has come to our attention as a stock that has been plummeting of late, and we’re beginning to speculate as to how long the decline can continue. Though it may still have a ways to fall before ultimately reversing, we want to place it on a close bottom-watch as we feel the eventual rebound could produce palpable upward swings, especially with such a large gap to fill on the chart (pointed out below).

Hypothetically speaking, a return to its pre-gap levels would mean gains in excess of 75% over the current share price.

Fresh Options Idea – FedEx

FDX is presently trading near a prior support level, and with earnings scheduled for the post-market tomorrow, we want to signal a possible options trading idea.

We’re going to want to radar contracts in the range of Weekly FDX $140-145 Calls today and tomorrow for activity running up to the earnings call, incidentally, in the midst of the busiest time of year for parcel deliveries. Things could get quite interesting for this play inside of the next 36 hours, so we’ll be sure to keep our eyes peeled.

Extended Watchlist:
NRX, FXCM, BPMX, USMJ, URBF, UPZS

Blue Horseshoe Stocks: Options Review, Big Movers & More

Friday’s Options Ideas

Our closing thoughts in Friday’s premarket report were in regard to the activity we were seeing in the VXX. It was trending several percentage points above its 50DMA and we went ahead and signals our interest in tracking the VXX $20-22 Calls, with an accompanying idea of SPY $206-203 Puts.

For the second Friday in a row, the options chains of this ETN and ETF provided us with the chance to pull down huge single-session gains:

$20 Calls – Trading Range: 1.09-3.74  – Max Gain: 243%
$20.50 Calls – Trading Range: .75-3.20  – Max Gain: 327%
$21 Calls – Trading Range: .44-2.69 – Max Gain: 511%
$21.50 Calls – Trading Range: .11-.2.29 – Max Gain: 1981%
$22 Calls – Trading Range: .11-1.84 – Max Gain: 1572%

The SPY Puts also worked out, although the potential gains weren’t quite as dramatic. For example the $203.50 Puts ran from .54-1.99; a comparatively modest, yet still excellent intraday move of 268%

We did a quick video highlighting these and a few other great calls made last week:

Another Big Chatroom Play

As our regular readers are aware, we’ve been calling more attention to the daily live traders chats that we conduct on Skype (Send contact request to ‘stocksumo‘ to join in!) so folks have a chance to get in on some of the hot plays that get presented to the room. For the third time in the past few weeks, chatroom member ‘DJ’ produced a gem. The following snapshot from Thursday afternoon’s chat contains his signal to the group:

What happened subsequent to that on Friday morning was nothing short of jaw-dropping. RGDXQ simply exploded as it came out of the gate at a low of .0024 and soared an impressive 900% to the high-of-day at .024 early on in the session. That was followed by a few significant swings later on as well. Excellent work by DJ in giving us the early-warning on that one!

Our current trader’s chats are free and open to anyone for a limited time only, so get on Skype and send a contact request to ‘stocksumo‘ to join in!

HydroPhi Technologies Group, Inc. HPTG

We had HPTG tagged in Friday’s morning report as well, and despite a pullback early on in the session the stock did make a nice rebound. After dipping to .0032 it regained ground back to .0048, which amounts to a 50% swing. The close came just a couple of ticks below at .0046, so we’ll definitely leave this stock on our radars for the time being.

The PR that helped fuel Friday’s activity (link below) highlighted a pair of significant acquisitions made by HPTG, so we’ll also be interested to track that aspect of the story.

Extended Watchlist:
CRCO, EFFI, NNRX, SKYF, TDEY

Blue Horseshoe Stocks: Wrapping Up Another Great Week

Baristas Coffee Company, Inc. BCCI

We first placed BCCI on our tracking list on Tuesday in our premarket report (and every day since), and the stock has gone on to make bullish moves all week. From our observed low of .009 on Tuesday, it took BCCI just three sessions to register an enormous swing to upside.

Yesterday the stock reached as high as .0279  which marked an intraweek increase of  210% and it did so on near-record volume, trading more than five-and-a-half times its 3-month average.

USA Restaurant Funding, Inc. USAR

USAR is another stock we’ve been tracking over multiple sessions this week. We entered it into the mix on Wednesday morning, at which time we witnessed lows of .0015 followed by a 93% run to .0029. We continued to track it into yesterday’s session whereupon the stock pressed from .0026 to a new high of .005 (+92% intraday) before falling back to the .002-range.

Two consecutive days with moves of better than 90% is nothing tio sneeze at; the overall range we observed in USAR in just a pair of trading days amounted to 233%


Fresh Options Ideas

We had tremendous success last Friday with sets of inversely-correlated options plays, so much so that we’ll try to do it again today. The VXX and the SPY have a tendency to mirror each other in reverse; we’ll use that fact to formulate a group of ideas that we feel have good potential based on this morning’s premarket activity.

The VXX Is gapping up over 4%, trending above both the 50DMA (19.75) and the 200DMA (21.08), and the set of options we’re going to be monitoring as a result are the VXX $20-22 Calls. Conversely, we’ll also track the SPY $206-203 Puts.

Notice the line we’ve drawn on the following VXX chart snapshot; the $22-mark has been acting as a key resistance area in recent months. A break past that figure could spell significant advances from this juncture. In the event that occurs, we may need to look at rolling up our strike prices accordingly.

Extended Watchlist:
CBIS, MHRC, CANV, HPTG, DBMM

Blue Horseshoe Stocks: Yesterday’s Big Winners & More

 

Lululemon Athletica, Inc. LULU

LULU was our options trading target yesterday as we noticed the stock gapping down more than 10% in the premarket on an ill-received earnings report.

The idea we had was to track each set of contracts within the range of LULU Weekly $47-44.50 Puts for possible intraday swing-trade opportunities. It ultimately turned out to be an awesome call, with blockbuster moves being produced by every single set we’d highlighted.

$47 Puts  – Trading Range:  .19-2.01  – Max Gain: 958%
$46.50 Puts – Trading Range: .13-1.59   – Max Gain: 1123%
$46 Puts  – Trading Range: .09-1.25  – Max Gain: 1288%
$45.50 Puts – Trading Range: .10-.94   – Max Gain: 840%
$45 Puts  – Trading Range: .05-.75  – Max Gain: 1400%
$44.50 Puts – Trading Range: .05-.52   – Max Gain: 940%

Perhaps the most astonishing thing is that single-session gains of this magnitude have become commonplace for our options ideas, as anyone who has followed our reports for awhile can attest. It’s the primary reason behind our shift over the last couple of years as we’ve moved to split our focus between what we like to call quick-strike options trading, and securities trading. The integration of options trading has opened up a lot of doors for us on a consistent basis, and we expect that trend to continue indefinitely.

Premier Biomedical, Inc.  BIEI

We had just finished commenting on the big moves BIEI has been making in yesterday morning’s report, and once again the stock pushed to new highs in what amounted to a very bullish session.

So after witnessing a 121% run from .015-.0334 on Tuesday, we were treated to another big intraday pop as BIEI ran from .0305 to .0529; a solid 73%

We also put together a video illustrating various facets of the BIEI chart:

USA Restaurant Funding, Inc. USAR

USAR was tagged in yesterday’s premarket report on our extended watchlist, and it too produced a significant move on the day, gradually ramping up throughout the course of the afternoon and running into the close.

From a low of .0015 the stock fell just a tick shy of a double-bagger, reaching a new 52-week high of .0029. It marked an intraday performance that allowed maximum gains of up to 93%

Extended Watchlist:
 MHRC, MDBX, BBRD, BCCI, CGRA, NUVI

Blue Horseshoe Stocks: BCCI, TPAC Reviews & More

Baristas Coffee Company, Inc.  BCCI

We had a couple of stocks from yesterday’s morning report jump out at us with excellent intraday upswings, the first of which being BCCI. The stock managed to crack into Pennyland as it ran from a daily low of .009 to as high as .014. That was highly respectable single session pop of 89% and it came on four times the 30-day average volume.

Provided BCCI can maintain a level of support at or above its previous swing high of .011 on any pullbacks, we’ll remain open to the possibility of seeing a sustained uptrend in coming sessions.

 
Trans-Pacific Aerospace Company, Inc. TPAC

Yesterday’s other notable mover was TPAC, and it too took its PPS to the next echelon as it began the day as a super-subpenny, and ended it in subpenny territory. We watched as it made its move from .0008 before topping out at .0014. That represented a total possible gain of 75% on the day.

Another Great Chatroom Call

Premier Biomedical, Inc. BIEI is a stock with which we are familiar, and it resurfaced yesterday in our daily live traders chat* thanks to regular participant, DJ!  As you can see from the following mobile screen snap, subsequent to DJ’s signal traders could have entered at a low of .015, and that gave way to a big run into the end of the session where the stock reached a high of .0334.

That was an intraday spike totaling 122%, and it marked the second multi-bag runner offered to the room by the illustrious DJ in as many weeks, so big cheers go out to him!

*As always, we’ll be glad to allow any readers interested in our daily chats into the room, just send a Skype contact request to user ‘stocksumo‘.

Lululemon Athletica, Inc. LULU

LULU is gapping down dramatically in premarket trading this morning, and in the event that a continued backslide occurs we’re going to be monitoring a range of puts in the LULU options chain. The dip is occurring in the wake of an earnings release that, despite including heightened revenues and profits, is being poorly-received.

Accordingly, we’re going to signal LULU Weekly $47-44.50 Puts for observation.

Extended Watchlist:
NPHC, MHRC, USAR, MDBX, EFUT, JGW(Bottom-Bounce Watch)

Get Our FREE Daily Reports!

SUBSCRIBE