Tag: MCD

Blue Horseshoe Stocks: Options Bonanza

Post-Earnings Options Success

Yesterday morning, a focus in our premarket report on Caterpillar and McDonald’s options proved to be a big success. Both companies exceeded expectations on their delivered earnings reports, and early activity suggested that opportunity was in the air.

We signaled multiple contracts for each of them, and no matter which chain and strike price was chosen, respectable intraday profits were there for the taking. The specific ideas we highlighted were the CAT Weekly $111-114 Calls, and the MCD Weekly $152.50 &155 Calls, and their subsequent moves were as follows:

Caterpillar, Inc. CAT
$111 Calls – Range: 2.00-3.88 – Max Gain: 94%
$112 Calls – Range: 1.36-2.88 – Max Gain: 112%
$113 Calls – Range: .85-2.15 – Max Gain: 153%
$114 Calls – Range: .58-1.44 – Max Gain: 148%

McDonald’s Corp. MCD
$152.50 Calls – Range: 4.35-7.50 – Max Gain: 72%
$155 Calls – Range: 2.15-5.00 – Max Gain: 133%

We’re seeing marginal premarket pullbacks from each stock this morning, but will continue to keep an eye on these play as we head into week’s end.
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Added Options Notes: Speaking of the end of the week, we’ve got an onslaught of big name earnings releases coming tomorrow and Friday, so expect the options intensity to ramp up quickly. We;ve got some fresh ideas today as well:

We also want to begin tracking a set of contracts in Chipotle Mexican Grill, Inc. CMG. We’ve been watching the stock get hammered down for the better part of the last two months, and yesterday it gave the reversal signal we’ve been looking for.Others have caught on as well, with the stock surging in premarket trading this morning. We’re going to be watching the CMG 8/11 $360-370 Calls.

Additionally, we’re also noticing a cherry of a chart setup on The Hershey Co. HSY, which, when paired with a big time beat on their own Q2 earnings, should make for a decent rebound. We’ll be staying on top of the HSY 08/18 $110 & 111 Calls.

AK Steel Holding Corp. AKS

We’ll also continue to keep an eye on AKS, which we tagged in yesterday’s report. The stock did rise, if only slightly (6.35-6.88), so we’ll want to track it for a more sustained run. It’s already trading above its 20 and 50-day moving averages- next we’d like to see it make a run at the 200DMA at 7.44.

Extended Watchlist:
PETX, IFON, OCUL, HMNY

Blue Horseshoe Stocks: ACRX Recap & More

AcelRx Pharmaceuticals, Inc. ACRX

We want to circle back around to ACRX this morning to give an update on its recent performance following our most recent tag of the stock on Monday of last week. We observed ACRX shares changing hands for as little as 2.80 that day, and the stock has been on a pretty nice run since then.

ACRX logged a solid session yesterday which allowed it to reach a new high of 3.65, marking an increase of 30% in a span of one week. More importantly, the stock closed at its new high, on heightened volume and is gapping up this morning, so we’ll definitely want to be on the lookout for further activity on this play, which is now trading at its highest PPS since October.

Post-Earnings Options Ideas

We usually have pretty good fortune when using the heightened activity that generally follows an earnings beat to find solid short term options ideas.

Today, Caterpillar and McDonald’s are the two big names making waves in the premarket, so we’ve formulated a range of interesting contracts in each chain to track as we head into midweek.

For Caterpillar, we’ll be looking at the CAT Weekly $111-114 Calls, and for McDonald’s, the MCD Weekly $152.50-155 Calls for potential quick-strike trades.


AK Steel Holding Corp. AKS

We want to put AKS on a longer-term watch after the company’s own solid beat on expectations for its Q2 earnings, as well as a recent upgrade from ‘Neutral’ to ‘Buy’ by Longbow Finance.

The potential for big tariffs on international steel being imposed in coming weeks is also present, and has been adding fuel to the furnace, so to speak, for steel stocks. A confirmation of those tariffs would certainly provide a boost that could send AKS higher.

Extended Watchlist:
GNCA, BKS, GEVO, TNTR, TEUM, DCIX,

Blue Horseshoe Stocks: NFLX, MCD Options Recaps & More

Options Recaps

Netflix, Inc. NFLX – We persisted in tracking the NFLX options idea that we formulated on Tuesday for the remainder of the week, and they ended up performing great yet again on Friday.  If you recall, our designated targets were the NFLX Weekly $117-120 Calls, and they didn’t have a down day all week.

The following figures indicate the lows we observed on Tuesday morning, and the subsequent highs reached during Friday’s session. What we were faced with were four incredible intraweek increases:

$117 Calls – Range: 2.19-10.77 – Max Gain: 392%
$118 Calls – Range: 1.43-10.02 – Max Gain: 601%
$119 Calls – Range: 1.03-8.87 – Max Gain: 761%
$120 Calls – Range: 1.07-7.83 – Max Gain: 631%

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 McDonalds Corp. MCD – Our highlighted range of MCD Weekly $113-115 Calls was fresh for Friday’s session, and it bore fruit as well. While we didn’t sweep the range in terms of hefty gains, the $113’s in particular did provide a nice chance to profit on the day.

Those calls traded in a range from .33 and shot to 1.43, allowing for  single-session gains of up to 333%

Agritek Holdings, Inc. AGTK 

Subsequent to the alert we put out on AGTK last month on the 14th, we would observe an overall low of .003, and the stock has never fallen below that level since. In fact, what began as a subpenny play, has rumbled its way to multiple pennies after a fantastic performance last week.

Running to a new high of .0298 on Friday, the stock registered an overall increase of 893% over our observed low, and with a strong close at .028, we’ll be on the lookout for some momentum spillover into this week. The possibility of a dip-and-rip forming on the chart also appears to be a plausible scenario, so we’ll be on our toes watching for that possibility as well.

AGTK is also a part of the cannabis sector, which of course we’ve been watching more intently, and plan to continue doing so leading into election day the week after next.

Peregrine Pharmaceuticals, Inc. PPHM

This is another familiar play for us, and we want to tag it for closer observation again this morning on the strength of both a fresh PR hitting the wires along with an attractive technical setup on the chart.

As you can see below, the stock has recorded a higher low in each of the last five sessions since coming off a bottom, and indicators suggest that things could heat up for this play at any time. We’ll keep an eye peeled.

TODAY’S NEWS:
Preclinical Research Demonstrates Peregrine Pharmaceuticals’ PS-Targeting Antibodies Enhance the Anti-Tumor Activity of PD-L1 Checkpoint Inhibitors in Model of Triple Negative Breast Cancer (TNBC)(>>Read PR)

Extended Watchlist:
IFAN, PLPL, PPCH, PPJE, OPGN, DRWI, NEWC, VNTH