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Blue Horseshoe Stocks: New Options Ideas & More

New Options Ideas

The market, which has been struggling mightily here in the opening weeks of 2016 for numerous reasons, appears to be in line for some measure of a rebound today, based on early trading activity. Q4 earnings season has kicked off, which should result in an increase of options trading opportunities in the days and weeks ahead. In the event this trend holds and progresses, we’re going to want to have a few options contracts ready and waiting in the hopper to watch for swing-trade possibilities.

Shire plc SHPG

SHPG shares are gapping up to the tune of more than 5% in the premarket this morning in the wake of the revelation that Shire would be acquiring US-based Baxalta for a whopping $32B. The deal figures to create the largest rare-disease drugmaker conglomerate in the world.

We like to take advantage of blockbuster reveals such as this, and the trading hysteria they tend to create. For this particular situation, we are going to set our sights on SHPG Weekly $175-180 Calls.

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Acadia Pharmaceuticals, Inc. ACAD

ACAD has been tumbling down in terms of PPS in recent sessions. The reported possibility of dilution as a result of fundraising via public offering has had investors coming down on the bearish side of the fence. We want to be on the lookout for the possibility of a rebound. If such a move occurs we’re going to have the ACAD 02/19 $29 Calls and 03/18 $30 Calls on our radars moving forward.

Alcoa, Inc. AA – Possible Recovery Play

AA is striking us as a stock whose time for a rebound may be fast approaching. We want to signal this as a potential bottom-play. The strength index is heading into heavily oversold territory, and a triple-bottom setup suggests AA could be nearing basement-level prices.

We’re going to add this to our current list of bottom-watch plays, which also includes KOOL, MGI, GNBT, and MAXD.

Extended Watchlist:
HCTI, IMTV, BLTA, AAPL

Blue Horseshoe Stocks: Options Review & More

Options Ideas – Updates

On Tuesday, we mentioned the possibility of taking advantage of the recent market downturn by utilizing some extended options ideas as stocks began to recover. We flagged 09/18-10/02 Calls in the FB, GPRO, GMCR, AAPL, NFLX, and TSLA chains. It didn’t very long for these ideas to bear fruit; we identified the following opportunities during yesterday’s session:

FB Sept 18th $85 Calls – Range: 3.54-5.25 – Max Gain: 48%
AAPL Sept 18th $105 Calls – Range: 4.95-7.40 – Max Gain: 49%
NFLX Sept 18th $98 Calls – Range: 10.75-15.23 – Max Gain: 42%
GPRO Sept 18th $45 Calls – Range: 3.04-4.00 – Max Gain: 32%

All of these stocks are gapping up significantly in the premarket today, so we expect to see some further chances for profit in these contracts. We’ll have to remain open to the possibility of needing to roll up our strike prices/expiration dates to stay closer to the money as the situation dictates.

Recap: Abengoa (SA) ABGB & Direxion Daily Nat Gas Bull 3X ETF (GASL)

We were tracking both of these stocks in the premarket yesterday, and each made modest yet notable intraday moves. ABGB traded in a range from 5.91-6.58, while GASL made its way from a low of 4.12 and went on to hit 4.56.

Both of those moves registered as 11% intraday increases, and in each case we’re going to be looking for the stocks to record higher levels of support than yesterday’s swing lows as we head into week’s end.

Great Basin Scientific, Inc. GBSN

We also want to tag GBSN as a bottom-watch play this morning. We love to track stocks that have been beaten back to new 52-week lows and bear an oversold look on the chart, and this is a prime example of just such a play.

In a press announcement this morning, the company has addressed the recent selloff, and we’ll be interested to see how the stock reacts. The CEO stated: “We believe our recent stock performance represents a technical inefficiency related to unit separation, not the underlying fundamentals of the Company’s performance”. >>VIEW PR

Extended Watchlist:
FORD, ACAD, AMBA, CMCM

Blue Horseshoe Stocks: ERBB, REAC & Extended Watchlist

Tranzbyte Corp ERBB

ERBB gapped up following its inclusion in our morning report yesterday, before dipping to .007. From that point, the stock gave us an opportunity at roughly a 30% intraday gain, running to .0091.

For those who may have missed yesterday’s report: You may be interested to learn that Tranzbyte’s Altitude Organix subsidiary has made the leap into medical marijuana vending machines which they have dubbed “The Green Machine”.

An excerpt from yesterday’s PR:

All interactions with “The Green Machine” are reported in real time to Altitude Organix central headquarters so that machines can be constantly monitored, refilled, or repaired when needed. Since all machines are wired into the Altitude Organix Network, video and data can be transferred to and from each unit along with instant price adjustments in addition to other proprietary capabilities.

Following the rollout of The Green Machine, the company plans to make available to users a free companion iPhone and Android program that will enable prospective users to operate equipped machines directly from their phones, with their only interaction being that they must reach down to pick up their chosen product in the machine’s delivery door.

Continues Mr. Gwyther, “Unless you’ve been away on another planet for the past several years, you couldn’t help but notice that the politics surrounding the use of cannabis-related products in the US for medical and adult use is shifting toward acceptance on the condition that the herb is regulated and taxed. For the first time since cannabis was outlawed in the early 1900s, a majority of Americans favor the legalization, regulation, and taxation of all marijuana products.”

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Real Estate Contacts Inc. REAC

REAC, the momentum alert that we added to yesterday’s report, went on to perform nicely early in the day, running from a low .023 all the way up to .046. There was a chance at a 100% profit before the stock saw some heavy selling pressure later in the afternoon, as it pulled back significantly.

Such a consolidation seemed inevitable following the huge 2600% move from its low two weeks ago .017, but we were glad to catch the last gasp of quite a momentous run. Moving forward, we’d like to see support hold in the .013-.015 range, in order to remain bullish on this play.

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Extended Watchlist:
FEGR, PNCH, JRRD, ELTP, AFTC, AEZS, ACAD

EGCT, BVSN & Extended Watchlist

Ecologic Transportation Inc. EGCT

Yesterday, EGCT managed a gain of 12.5% on 41,500 shares traded, and with zero sells on the bid. It looks like the selling pressure that took the stock down to .20 last week has dried up. From watching the level 2 yesterday we noticed that the support was forming at .34. This is the third successful bounce we’ve seen off of support, and if the stock can test recent highs at .46 and .48, we could be looking at gains on the order of 28-33% from yesterday’s close of .36. A break of those recent highs will send us into full-on blue sky breakout mode, where we could see a new 52-wk high.

(Snapshot taken at yesterday’s close)

If you didnt check out our article on EGCT that we sent out yesterday you might want to do so now. It provides a good look at the market of which EGCT is about to become a part.

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BroadVision, Inc. BVSN

BVSN had a stellar performance yesterday, opening at 8.66, dipping as low as 8.50, and hitting 11.75 before closing out the day at 10.68. This range gave us the opportunity to see between 26-38% in gains. It isn’t often that we cover stocks over 5.00, but we seem to have the timing down just as well as we do for any other play.

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Extended Watchlist:
RAD, ACAD, RFMK, CYTR, CIM, PRAN