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Blue Horseshoe Stocks: MULE is Kicking & More

MuleSoft, Inc. MULE

We try to include mentions of all sorts of stocks from nano-caps all the way up to the big boards, and there can be no doubt we’ve found success with plays across the entire spectrum. Generally, when we catch a stock for a large gain over a short time period, it trades for pennies a share or less. However MULE is yet another example of a higher priced stock that we recently put on our radar, making a series of big jumps in just over a month.

When we initially tagged this play back on February 16th, it was trading as low as 28.51. After a very bullish month was followed up by another big spike this week, MULE has kicked its way all the way up to 42.40, an impressive increase of 49%

The move was catalyzed by yesterday’s announcement that the company would be acquired in full by Salesforce. Generally you don’t get a sustained push from a buyout, so we wouldn’t be surprised if the stock didn’t go much higher, but we’ll keep an eye peeled just in case.

Aytu BioScience, Inc. AYTU

We’re going to place AYTU on watch this morning as a potential bottom bounce play. The stock produced abnormally high volume yesterday along with a marginal spike in PPS.

As you can see on the chart below, AYTU saw a precipitous decline in February, and has been oversold all month long, yet still maintaining support in the low to mid .40’s. Indicators suggest the possibility of a recovery on the horizon, so we”ll go ahead and monitor the activity here in the days ahead.

Fresh Options Idea:

General Mills Inc. GIS – General Mills has been in trouble on the chart for quite some time, and despite it already being at 3-year lows, the stock is continuing to get crushed on the heels of a disappointing earnings report. Accordingly, we’re going to be tracking the GIS 04/20 $50-45 Puts.

Extended Watchlist:
AKAO, OHGI, CPST, PTI, CATB, TLGT, TEUM

Blue Horseshoe Stocks: More Options Success

SPDR S&P 500 ETF (SPY) – Options Recap

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Our options calls we made for the SPY on Friday morning were very good to us, and were an excellent way to close out what was ultimately a very successful trading week.

We put a flag up on the SPY Weekly $274.50-277 Calls after seeing the markets stabilize last midweek, following a couple of turbulent sessions as a result of Trump administrations newly announced tariffs. Things looked ripe for a rebound on Friday and that’s just what we got, with the SPY turning in a bullish performance from start to finish.

There were six sets of contracts contained in our designated range, and regardless of which strike price was chosen, intraday gains were on the table, ranging from very good to absolutely fantastic.

$272 Calls – Range: 1.30-4.31 – Max Gain: 232%
$272.50 Calls – Range: .80-3.90 – Max Gain: 387%
$273 Calls – Range: .68-3.25 – Max Gain: 378%
$273.50 Calls – Range: .46-2.90 – Max Gain: 530%
$273 Calls – Range: .26-2.45 – Max Gain: 842%
$273.50 Calls – Range: .10-1.90 – Max Gain: 1800%

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Burlington Stores, Inc. BURL – Speaking of multi-bag options winners, we slated the BURL 03/16 $120 & $125 Calls for observation on Thursday morning, and those finished out the week with stregth as well. The $120 Calls ran from 4.04-8.50, for an intraday rip of 110%, while the $125 nearly doubled that performance with a 212% run from 1.35-4.21.

Lumentum Holdings, Inc. LITE

We want to swing back around to recap the recent performance of LITE as well. Since our alert on the stock on February 7th, at which time the stock was trading for as little as 52.20/share, LITE has made considerable and steady upward progress.

On Friday it hit a new high of 69.25, marking a move of 33% in less than five weeks. That is quite a feat for a stock that started out above $50!

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Fresh Options Idea:

Valeant Pharma International, Inc. VRX -We’re going to formulate a short and longer-term options idea for VRX, which is looking like it could be ready for a bottom bounce. Last week, an insider buy to the tune of more than $108.8M came in as well, which just reinforces our assumption that for now the stock has gone as low as it’s going to go.

We’ll be looking at the VRX Weekly $15 & $15.50 Calls, as well as the 04/13 $16 & $16.50 Calls.

Extended Watchlist:
ADMS, AKER, CPST, KANG, MRTX, NPTN, ENRJ

Blue Horseshoe Stocks: Kicking Off a New Trading Week

Ocean Rig UDW Inc. ORIG

We’ve had ORIG on bottom-watch for just under a month now, as the stock was undergoing a consolidation that appeared unsustainable. It seemed just a matter of time before it began to rebound, so we were monitoring it for a signal and got one in a big way on Friday.

ORIG came off its newly-registered annual low of .12 and traded up as high as .237, a 98% rise which occurred on ten times the monthly average volume. More importantly, the stock managed to crack through its 50DMA at .19, and held above that mark with a closing price of .20.

We’re going to want to continue to track ORIG, looking for the registering of higher lows off of its recent bottom. The RSI is also screaming toward the power zone, so we’ll hope to see ORIG string together a multi-day run.

Camber Energy, Inc. CEI

Speaking of stocks that are gaining strength, CEI has been in a pretty convincing ascending wedge pattern recently, routinely recording higher highs and higher lows off of its annual lows established late June.

We’ve pointed out on the chart below where the next key areas of resistance are, so we’ll want to track CEI to see if it can maintain its current trajectory and make a run at those areas on the chart.

Extended Watchlist:
TEUM, ACRX, MDGS, NPHC, MTBC, CPST, HEAR

Blue Horseshoe Stocks: BAC Options Recap & More

Bank of America Corp. BAC – Fresh Options Idea

We went bullish on BAC yesterday, confident that a rebound after Brexit-related losses could propel a set of options contracts to some sizable intraday gains. We were right on in our assessment, and after both an early morning rip, followed by a pullback and run-up into the close, were presented with multiple quick-strike opportunities.

Each of the two sets of calls we signaled, the BAC Weekly $12.50 and $13 Calls, ultimately provided us with two solid chances each:

$12.50 Calls – 1st Run: .22-.32 (+45%) – 2nd Run: .20-.37 (+85%)
$13 Calls – 1st Run: .08-11 (+37%) – 2nd Run: .05-.12 (+140%)

BAC is gapping up once again [currently trading in the 12.90-range] in the premarket, so it would appear our observed contracts are in line for a chance at another productive session. To reiterate our statement from yesterday’s report, if BAC looks as if it will breach the 13.50-mark, we’ll be looking to roll up our strike price to that level.

Petroleo Brasiliero S.A. (Petrobras) PBR – Options Recap

We recently signaled some longer-term calls in the PBR options chain, and just wanted to take an opportunity to update our readers on the potential gains that have been made possible there.

This past Friday, we signaled the PBR 07/15 $6.50 and $7 Calls and have been pleased with the subsequent activity. Monday’s dip provided an excellent buy opportunity as the $6.50’s traded as low as .30 and the $7’s traded as low as .15. Yesterday, we observed the $6.50’s close at .50, and the $7’s close at .27. That worked out to intraweek gain opportunities of 66% and 80%, respectively.

We’ll want to keep these on our radar, with two weeks yet remaining until their expiration date.

Fresh Options Ideas:

We’re already options-heavy this morning, so we figured why not formulate a couple more ideas to add to our pool of interests:

The Markets are gapping up big again today, and if today’s activity is at all like yesterday’s dip-and-rip scenario, we will want to pay close attention to the SPY Weekly $204-206 Calls. We’ll also be tracking the NKE Weekly $52-54 Calls on the heels of Nike’s post-market earnings beat yesterday.

Extended Watchlist:
USLV, TEF, ORIG, WTW, CPST, WATT

Blue Horseshoe Stocks: NQ Review & More

NQ Mobile, Inc. NQ

Our coverage of NQ stretches all the way back to the Fall of 2013 when the stock made a huge run, and we tracked it to a similar albeit smaller-scale spike in October, so we are quite familiar with this play. We have good reason to re-assess NQ this morning in the wake of an interesting PR, coupled with a good positioning of the chart.

In terms of the NQ chart, there a couple of finer points that we’ll point out on the following snapshot:

This morning’s PR relates to a big open market stock repurchase by management which seems to be fueling NQ in the premarket. >>> VIEW PR

Cannabis Coverage:

A few of the marijuana-related stocks we were mentioning yesterday morning managed to put up some solid numbers over the course of the day.

CBIS traded in a range from .068-.08 (+17%) on roughly 4X its monthly average volume.

MCIG did slightly better as recorded a 19% move from .15 to .178, trading more than twice its average volume.

EAPH also had a heavy volume day to the tune of roughly 3X its average, and made a healthy jump of 21% as it traded from its open at .024 to a high of .029.

As medical and recreational marijuana acceptance continues to spread, we’ll need to keep a close eye on these and many other cannabis plays, as we tend to believe that growth in this arena will be more substantial in 2015 than any previous year.

A few other pot plays to watch this week: WDHR, NRTI, MDCN, LATF, VPOR

Extended Watchlist:
CYTR, NERV, FRO, CPST, DARA, MNK, SNSS, RNN