Blue Horseshoe Stocks: Friday’s Options Success & More

VXX & SPY Options Recap

We ended last week on an extremely strong note with respect to our premarket options-trading ideas. As we’ve done so many times this year, we offered up some target ranges in which we felt we’d see big activity, and every single contract highlighted therein would go on to make huge intraday swings.

We outlined our interest in the VXX $20 and 19.50 Puts SPY $206-207 Calls, specifying that we’d flip to VXX Calls and SPY Puts in the event that the VXX breached its premarket high of 19.70. That never occurred, we therefore stuck with the original idea, and the possible gains afforded to whoever was paying attention were quite large:

VXX

$20 Puts  – Trading Range: .59-1.79  – Max Gain: 341%
$19.50 Puts – Trading Range: .29-1.28   – Max Gain: 203%

SPY

$206 Calls – Trading Range: .75-3.91  – Max Gain: 421%
$206.50 Calls – Trading Range: .48-3.42   – Max Gain: 612%
$207 Calls – Trading Range: .31-2.05 – Max Gain: 561%

These plays were also topics of discussion in our daily live trader’s chats last week, and we’ve been receiving a lot of inquiries from our readers who want to get involved. We welcome anyone who enjoys our daily reports to join in, and all you need to do is log onto Skype and send a contact request to username stocksumo.

VitaCig, Inc. VTCQ

We put VTCQ on watch in this past Wednesday’s morning report, and the stock made one heck of a two-session swing from the following morning to Friday afternoon’s closing bell.

Friday’s move alone was quite impressive- the stock ran from .008-.145 which comes out to an intraday pop of 81%  Our observed low of .0042 came promptly at the open on Thursday, and measured from that point, Friday’s closing price represents a total move of 245%

Granted the fact that we did see VTCQ close at its high of day on roughly three times its monthly average volume, we will want to leave this play on our radars. As usual we’ll look for it to record higher highs and higher lows, and to retain our attention, it will need to maintain support at or above .01. The next key area of resistance appears to be sitting at .0181.

Extended Watchlist:
AMBS, ARYC, AGTK, FCEL, SNGX, IGEX(Bottom-Watch)

Blue Horseshoe Stocks: VXX Options & More

iPath S&P 500 VIX ST Futures ETN (VXX) – Options

We were just mentioning our daily live trader’s chats* in yesterday morning’s report, so we thought we’d give our readers another peek into the activity that goes on in the room. Yesterday around lunchtime, as you can see from the included screenshot below, we were observing the market action caused by the FOMC meeting that was in session at the time.

We noticed new highs in the VXX and signaled our interest in the $19 Calls. We also looked at the SPY, which generally trades inversely to the VXX, and alerted on the $207 Puts; both ideas worked quite well. The VXX $19 Calls ran from .49 to 1.52, a 201% intraday pop. The Spy $207 Puts also offered a nice opportunity as they ran more than 130% from the low 1.30’s to over 3.00.

To follow up with these ideas today, based on premarket activity, we are currently anticipating of a reversal from yesterday’s trends and will thus radar SPY $206-207 Calls, and VXX $20 and 19.50 Puts. However, if the VXX were to break its premarket high of 19.70, it would cause us to flip our targets back to the other side of the fence, so we’ll need to be extremely tuned in once the session gets moving.

*For those that didn’t catch yesterday’s reminder- we welcome any of our readers to get involved with our daily traders chats by sending a Skype contact request to ‘stocksumo’.

Avon Products, Inc. AVP

We’re going to place AVP on watch today as well, due to a number of factors. Setting aside the potentiality of an upcoming buyout of its North American business which has met with some resistance (View Article), AVP is setting itself up one heck of a chart. In today’s premarket trading the stock has breached the resistance line we identify on the following snapshot. There appears to be a good chance to see AVP add to its recent gains which have been fairly steady in recent weeks.

Despite public dissent from one of its large stakeholders, it appears that AVP will still attempt to move forward with their exploration of a proposed buyout (View PR), so it will be very interesting to track this play as that story continues to unfold.

Extended Watchlist:
KBIO, MKAU, HCTI, BCCI, AMBS, ABHI (Bottom-bouncer)

Blue Horseshoe Stocks: YHOO Options Review & More

Yahoo, Inc. YHOO – Options

After an impressive run of tracking multiple winning stock plays in recent sessions, we got back to some options-trading ideas with YHOO yesterday morning and were quite pleased with the result.

YHOO was gapping up early on speculation of a possible sale of its core web business, and we were looking for a way to take advantage of the hustle and bustle. Our signaled range was the YHOO Weekly $34-35.50 Calls and big intraday returns in each set of contracts were there for the taking:

$34 Calls – Trading Range: .97-2.36  – Max Gain: 143%
$34.50 Calls – Trading Range: .64-1.91   – Max Gain: 198%
$35 Calls – Trading Range: .40-1.45 – Max Gain: 263%
$35.50 Calls – Trading Range: .30-1.10 – Max Gain: 266%

It’s worthwhile to mention that big gains were also possible at higher strike prices, and it became apparent very early on. We mentioned this in our chatroom*, and members had the chance at up to 120% gains as the $36 Calls ran from .36-80.

CD International, Enterprises, Inc. CDII

CDII was among a group of plays that we put on our radars at the beginning of the short holiday week that have been jumping off of the page with big gains this week. One of our valued chatroom* participants, DJ, reminded everyone yesterday prior to the opening bell that there was activity in CDII (snapshot below) and everyone had to hold onto their hats from there!

What ensued was a monster run from .0019 to .07, which represents an unreal 3584% intraday romp. The news contained the announcement of a $350M purchase order, and traders went wild trying to soak up shares in what ultimately amounted to a dream-scenario.

We’ll be very interested to continue to track the stock moving forward. After its epic run it pulled back considerably into the close and is currently gapping once again in the premarket to the .035 area. We’ll continue to be interested provided it can hold a minimum of .03 as support once things get going this morning. Ideally we’d like to see the stock break through .04 once again and maintain that as a new level of support.

*We encourage anyone who’d like to get involved with our traders chats, simply send a Skype contact request to username ‘stocksumo’. We’d be happy to let any of our faithful readers get in on the fun!

Tautachrome, Inc. TTCM

We tagged TTCM for observation in yesterday’s extended watchlist, and the stock went on to carve out a solid 30% run from .03 to .039. It pulled back only slightly into the close at .035, and did so on roughly twice the monthly average volume.  It also marked the second day of higher recorded highs and lows for the stock, so we’ll continue to track TTCM provided it can sustain that trend.

Extended Watchlist:
NPWZ, NERG, BBRD, CBNT. PBMD,

Blue Horseshoe Stocks: TERP Review & More

TerraForm Power, Inc. TERP  

TERP was the stock from yesterday’s track list to really catch our attention with a strong intraday performance. The daily low of 8.07 came within the first ten minutes of trading and we’d see a run to 9.89; a 23% pop.

We’d characterize that as a solid single-session gain for a stock in this price range. It maintained the majority of its daily advance, and did so on roughly eight times its 3-month average volume.

The whole event was apparently caused by a surge in investor interest based on the comments of high-profile hedge fund manager David Tepper  as well as an analyst upgrade. There’s also been a recent influx on attention for the energy sector as a whole. It will be very interesting to see how the stock forges ahead, especially when this morning’s PR (Link to PR) is added to the equation.

Monarch America, Inc. BTFL

We’ve also taken notice as a stock we tagged for tracking last Monday has built up a good head of steam and gone on a nice two-day run this week. BTFL saw a low of .0021 on Monday, and yesterday reached a high of .0094 which marks a swing of 348% for this subpenny mover.

We’ll stay on its trail just as long as it continues to build a higher base level of support going forward.

Energy Finders, Inc. EGYF

EGYF is another play we put on our radars early last week that has produced some exciting swing action in recent sessions. When we first put it on our watchlist it was as low as .0055, and subsequently ran to .0082 the following day (+49%).

That was followed by a dip to .004 on Monday morning, before it broke to a high of .0087 yesterday (+117%). We’ll want to continue to keep an eye on it, considering the fact that it has broken prior resistance on its way to new highs.

Fresh Options Idea – Yahoo, Inc. YHOO

We’re going to signal a range of options contracts that we find attractive this morning as well. YHOO is gapping up in the premarket, so we’re going to be on the lookout for activity in the Weekly $34-35.50 Calls.

Extended Watchlist:
MCOA, LEXG, VTCQ, TTCM,

Blue Horseshoe Stocks: PLKD Recap, Options Idea & More

Pleasant Kids, Inc. PLKD 

PLKD was far and away the best among all of the stocks we talked about in yesterday’s premarket report. We’d mentioned the fact that the stock had been on a very steady run-up since our first alert came roughly six weeks prior, on October 13th. Up until yesterday, the total observed move we witnessed in PLKD was an impressive 380% swing from .0581- .279.

Despite being up so high already we pointed out the bullishness of various aspects of the chart, specifically stating that we believed further gains were possible. Our hunch proved accurate, and once again PLKD made another nice move to the upside! From its daily low of .295 the stock pressed upward to reach .375; a healthy 27% intraday increase. That stretched our overall range to a monstrous 545% in a span of just six weeks!

MarkWest Energy Partners, L.P.  MWE – Options Idea

MWE caught our eye yesterday morning after we noticed that the stock had not only strung together multiple sessions of higher highs and higher lows, but it had breached its 50DMA during Friday’s short session. Continued bullish signals were confirmed yesterday with another solid session that carried MWE to a high of 48.21.

We’ve had enough of simply watching from the sidelines, so we thought we’d formulate an idea to take advantage of the trend using the MWE options chain. Instead of one of our characteristic weekly expiration targets, which the MWE chain does not provide, we’re going to stretch things out a bit to the MWE 12/18 $50 Calls.  This gives us an extra couple of weeks to work with and increases the likelihood of seeing some substantial moves if the stock is sluggish in testing the $50-mark.

SpectraSCIENCE, Inc. SCIE

SCIE is a play that we tagged for observation last week, and we wanted to take an opportunity this morning to update readers on the solid performance the stock has put forth.

Yesterday’s session produced chances at up to 94% in profits as SCIE ran from .0018 to .0035. Subsequent to our mention of SCIE just prior to the holiday break last week we saw a low .0013, which balloons the total move we’ve seen out of this stock in just a week to a highly respectable 169%

Extended Watchlist:
VRSZ, EGYF, GTHP, KWBT, TERP, AEZS

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