Blue Horseshoe Stocks: UVXY, VXX Options & More

No Rate Hike – SPY & VXX Options Ideas

Another eagerly-anticipated FOMC meeting came and went without an interest rate hike by the Fed yesterday, and as a result we observed a dramatic rise in volatility for the markets. We expect that turbulent activity to carry over into today, and with the added caveat of it being expiration day for weekly contracts, it could give rise to some serious options-trading opportunities.

Currently we’re seeing the VXX and UVXY gapping up in the premarket this morning. We will be on the lookout for a potential bounce in the markets followed by a fade to the downside. It would be at that point we’d look to get positioned in some Weekly VXX and UVXY Calls, specifically VXX $22.50-25.50 Calls, and the UVXY $48-52.50 Calls. Alternatively, we could take advantage of the same sort of scenario with SPY Weekly $197.50-194.50 Puts.

Part of the beauty of trading options is, if by chance the markets undergo a more sustained rebound and operate contrary to our initial gut instinct, we can simply flip those ideas to the other side of the fence (Puts where we mentioned Calls, and vice-versa) while striking in the same target ranges.

Great Rock Development Co. GROC

We also want to make mention of a stock we tagged for observation in Wednesday’s report which has made a nice intraweek move. GROC traded at a low of .0055 that morning, and followed up with a couple of solid sessions.

Yesterday. the stock managed to close at .0085, which represents a 55% session-over-session increase, and it occurred on slightly more than 3.5X the average monthly trading volume.

Global Digital Solutions, Inc. GDSI

GDSI is another subpenny play that caught our eye yesterday as it rebounded off of a new 52-week low. This stock has been steadily trending down for a protracted period, and is just about reaching the point where a more significant recovery could be in the cards.

It’s self-evident on the chart below, which shows that GDSI is heavily oversold at the present time. Add in a recent bullish cross on the MACD, and this is one we’ll want to monitor more closely in coming sessions. We’ll look for it to continue to register higher highs and higher lows off of that bottom.

Extended Watchlist:
MDBX, RDSH, GLD, CHLO

Blue Horseshoe Stocks: CHKE Recap, Options Ideas & More

Cherokee, Inc. CHKE – Update

We flagged CHKE yesterday as a stock we felt was undervalued coming off of a particularly rough month that saw it get beaten back to new 52-week lows. Our ‘bottom-feeding’ sense immediately kicked in, and in a timely fashion at that. The stock did indeed exhibit the early signs of a recovery, registering higher lows than the session prior, and making a modest move up from 14.67-15.83 (+8%).

We’re going to want to continue to track CHKE for the possibility of a protracted rebound (Remember, there is also a massive gap to fill on the chart), and in that event we’ll be looking to possibly take advantage using the CHKE options chain. We’ll look at the only contracts that had open interest yesterday, which were the 10/16 $17.50 Calls (Last Trade: .30).

If CHKE were to regain even half of the ground lost between its current PPS and that of a month ago, those calls will be pushed deep into the money, and would provide us with a chance to profit tidily.

Santo Mining Corp. SANP

SANP is a super-subpenny play we flagged for observation on Monday, and it didn’t take very long for us to observe a nice move from the stock. Following a low of .0003 on Tuesday, SANP has made a good intraweek swing of 133%, trading as high as .0007 yesterday on volume which exceeded the monthly average volume by six times.

There really wasn’t a heck of a lot going on with this play prior to the beginning of this month, and this weeks activity has come on the heels of the company securing a new Chief Market Officer with an impressive resume, so we’ll be interested to follow along and see what he has in store in the way of changes for SANP.

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Added Note:

Speaking of super-subpennies, Embarr Downs, Inc. EMBR has caught our eye this morning as a play that bounced off of its 52-week low and made a brief move into subpenny territory yesterday. We’ll have this one on watch as well, in case further action provides a chance for quick intraday strikes.

Extended Watchlist:
AERI, CVC, SIRG, GTSO,
BGMD(Bottom-Watch)

Blue Horseshoe Stocks: EQLB, TPIV, CHKE & More


EQ Labs, Inc. EQLB

EQLB was the big standout from yesterday’s report, performing extremely well after receiving first-billing in our premarket extended watchist. We caught this momentum play on an early scan and were very pleased to have included a mention of the stock as it blasted off right out of the starting gate.

From an initial low of .0035, EQLB surged as high as .0062 for a very respectable 77% intraday rip on excessive volume; it traded its one month average ten times over. It and our next mention accounted for two of the top three most-actively traded stocks on the OTC, so we were certainly poking our noses in the right place.

With momentum carrying over from the previous session to yesterday, moving forward, we’ll be open two the possibilities of either a sustained uptrend, or a potential dip-and-rip scenario.

TapImmune, Inc. TPIV

Our other nice spot from yesterday’s report was TPIV, which caught our eye in the wake of an early PR relating to one of its vaccine’s inclusion in a USDOD-funded study.

We had already been following the stock all summer; regular readers will recall our tracking this play to double-bag gains back in June. That history, the press, and a ripening chart more-than warranted another mention, and it turned out well. TPIV ran from an early low of .52, and steadily rose toward its HOD of .68, marking a 31% increase.

We’ll certainly continue to monitor its progress, especially given the fact that it maintained nearly all of its daily advances, closing just a penny off of the high at .67.

Cherokee, Inc. CHKE

Our readers are well aware of our penchant for bargain hunting, and we’ve got a potential bottom-watch candidate in CHKE to bring to the table today. The stock recently underwent a huge gap-down as a result of poorly-received earnings, and on Monday, was been beaten back to its annual lows.

That sort of activity always draws our attention, and in this case, the snap-back could be quite significant with a huge gap to fill on the chart. Add in analyst price targets ranging from $21-33, and this play begins to look out of place at such a low PPS. We’ll be scanning this one continuously for signs of recovery.

Extended Watchlist:
ITCI, ADEC, TOVC, GROC

Blue Horseshoe Stocks: ATHI, TBEV Recaps & More

American Transportation Holdings, Inc. ATHI

ATHI was the most impressive among three good plays to come off of our extended watchlist in yesterday’s premarket report. Despite the stock having already made a 600% move on, Friday, we saw the opportunity to possibly take advantage of momentum spillover, and it turned out to be a great decision.

ATHI opened up at .0005, and never looked back as it ran from super-subpenny to subpenny territory, culminating in an impressive daily high of .0022 which registered as a 340% intraday rip.

Our sincere congratulations go out to any of our readers who were able to take advantage of this beast of a runner!

We may want to begin monitoring this play for a possible forthcoming dip-and-rip scenario caused by hastily-exiting profit-takers.

High Performance Beverages Co. TBEV

TBEV was the next good call for us from yesterday’s report. This is another stock that fared very well on Friday (.0015-.0025), yet still provided sufficient action for traders to make a tidy profit yesterday.

It traded in a range from .0017 to .0024, which represents a healthy intraday increase of 41%

BioPharmX Corp. BPMX

BPMX was a nice catch for us too yesterday. We witnessed a modest yet solid move from a daily low of 1.85 to a PPS high of 2.25, a 22% jump.

It brings BPMX to its highest value since early August. A return to June levels would mean significant added gains from here, so we’ll be open to the possibility of a protracted recovery for this stock.

Extended Watchlist:
EQLB, EGYH, SITO, AXPW, DGSE, TPIV, VPRO

Blue Horseshoe Stocks: GRLT Recap, Options Ideas & More

Healthy & Tasty Brands Corp. GRLT

In Friday’s morning report, we tagged GRLT, a super-subpenny play, for observation and the stock did make a nice initial move right out of the starting gate. It had been continually building a higher base level of support since the end of August, and continued that trend as it ran from .0005-.0007; a 40% jump. The move came on approximately 3X the 3-month average volume, and GRLT did manage to hold a PPS of .0006 into the close.

This is one that we’ll continue to watch for possible intraweek swing-trade opportunities in the near future. As we mentioned in Friday’s report, we’ll need to see it maintain support at or above the current 50DMA of .0004 in order for it to hold our attention moving forward.

Amazon.com, Inc. AMZN – Options Update

One of our main points of focus on Friday was an idea we formulated for the AMZN options chain. Looking at the activity on the AMZN chart as it was breaking out, we came up with an extended-term target of the AMZN 10/16 $550 Calls  and we saw some immediate response from those contracts. They traded in a daily range from 10.17 up to 11.89 marking a solid 17% increase.

If AMZN can continue its uptrend to the point of testing it’s annual highs, our targeted Calls will be pushed deep into the money, and in that case, would produce further opportunities down the road.

Apple, Inc. AAPL _ Options Idea

AAPL is gapping up this morning on positive pre-sale numbers for the new iPhone 6S Plus, and we’re going to go ahead and formulate an idea for some possible intraday/intraweek options-trading opportunities.

We want to signal our interest in AAPL Weekly $115-116.50 Calls on the heels of what could be a potential dip-and-rip scenario on the chart. Either way, we’ll be watching AAPL activity closely as we kick off this new trading week.

Extended Watchlist:
TBEV, ATHI, SANP, BPMX, ZUMZ(New 52-wk lows)

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