Blue Horseshoe Stocks: Tuesday’s Gainers, Options Recap & More

Yesterday’s Movers

While Tuesday’s activity was more subdued than the landmark session we had on Monday, we did manage to find major success with our options trading ideas, as well as the following stocks which made moderate moves to the upside:

Propanc Health Group Corp. PPCH – PPCH is a stock we’ve talked about on several occasions in the past, and it continued its ascent off of recently established annual lows following its inclusion in yesterday’s morning report.

The stock traded in a range from .0188 to .026, an intraday pop totaling 38%, and it did so on volume which came in at nearly quadruple the 3-month average. It also closed just a few ticks below the HOD, so we’ll certainly have a continued spot on our watchlist reserved for PPCH for the time being.

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Black Stallion Oil & Gas, Inc. BLKG – Traders with a quick trigger finger could have taken advantage of the rapid move made by BLKG right out of the starting gate yesterday, with its spike from .08 to .12. The run was, however, relatively short-lived as compared to the previously mentioned play.


Options Recap

Our options calls (and puts!) turned out to be the stars of the show yesterday, as we were mentioning above. As our regular readers are surely aware, we’ve developed the keen ability to spot short-term options opportunities with hawk-like acuity, and that fact was on full display once again.

Urban Outfitters, Inc. URBN – Weekly $29-32 Calls

$29 Calls – Trading Range: 1.79-4.10 – Max Gain: 129%
$30 Calls – Trading Range: 1.20-3.11 – Max Gain: 159%
$31 Calls – Trading Range:  .89-2.36 – Max Gain: 165%
$32 Calls – Trading Range: .42-1.56 – Max Gain: 271%

Shake Shack, Inc. SHAK –  Weekly $40-37.50 Puts

$40 Puts– Trading Range: 1.60-2.96  – Max Gain: 85%
$39.50 Puts – Trading Range: 1.35-2.65  – Max Gain: 96%
$39 Puts – Trading Range: 1.19-2.46  – Max Gain: 107%
$38.50 Puts – Trading Range: 1.30-1.96  – Max Gain: 51%
$38 Puts – Trading Range: .92-2.76  – Max Gain: 200%
$37.50 Puts – Trading Range: .69-1.25  – Max Gain: 81%


Extended Watchlist:
MINE, ROYL, NWTR, NWPN, GRNH, MXSG,
PPHM(Coming off annual lows w/ large gap to fill)

Blue Horseshoe Stocks: Momentum Play, Options & More

Shark Reach, Inc. SHRK

We’re going to be tagging SHRK for observation as a momentum mover this morning after noticing the huge activity in the stock yesterday. It came in conjunction with an article that Forbes ran about the company and its “influencer marketing” strategies. (>>View Article).

Many of our readers will have been aware of the marketing campaign that accompanied the theatrical release of the movie Straight Outta Compton, which was orchestrated by SharkReach. They promised Universal Pictures 7 million impressions and delivered more than 130 million, thanks in large part to the graphical memes that gained viral popularity for a period of months leading up to and following the film’s debut.

The rapid growth into a major player in less than three years of business definitely puts the company on our radar long term, but for the time being, there may be some short-term advantage to press with SHRK. We’ll look for profit-takers to surface after the stock’s rapid and meteoric rise, and be ready for a classic dip-and-rip scenario.


Facebook, Inc. FB – Options Ideas

With regard to a fresh options trading idea, we’re going to be watching Facebook for a possible move to the short side. The stock recently made a run that proved unsustainable, and the chart is looking rather toppy at the moment with a significant gap to fill to the low side.

For potential daytrading and intraweek swing-trade ideas we will be monitoring the Feb 5th $113-110 Puts. For a longer-term idea, assuming more hardship lay ahead for the stock, we’ll want to keep an eye on Feb 19th $109-105 Puts.


Extended Watchlist:
VLTC, VPLM, VTNR, DNR, CNAT, SRCO, ROYL, PSID

Blue Horseshoe Stocks: FB, TWTR, POWR, ONVO & More

Facebook, Inc.  FB
& Twitter, Inc. TWTR

After we included FB and TWTR in our extended watchlist yesterday, the two social media giants both made positive moves on the day. The uptrends made trading in the options chains of each of these plays a lucrative venture for the session.

For example, looking at some of the options contracts that were relatively close to the money, FB $66 calls went from .48-1.64, and $67 Calls were as low as .21 and closed at .86. TWTR $39 Calls were also moving, trading in a range from  .24 to .90. No matter what big-board stock you’re looking at options in, the heaviest action will usually be close to the money (i.e. Current market price as it relates to the “strike-price” of a given contract)


PowerSecure International, Inc. POWR

POWR was a feature in yesterday’s report, wherein we tagged the stock for its potential to fill in a huge gap on its chart that goes all the way to the $18-range. We began to see the gap beginning to fill as POWR would make a modest intraday run to a high of 9.79.

We’re going to leave this play on our watchlist as we head into the week’s end and beyond, as it still has much ground to recover. A return to pre-gap levels on the chart would still equate to gains in excess of 100% from here, and there isn’t a whole lot in the way of obvious resistance until we hit the 50DMA (12.27).

On the options side of things, we’re particularly interested in the August $10 Calls (Closed at .75 yesterday), because if POWR can test that 50DMA by 08/16, we could be looking at triple-bag gains from those contracts.


Organovo Holdings, Inc. ONVO

We placed ONVO on watch in Tuesday’s report, as we noticed that unlike some of the other players in the 3D printing industry, it had yet to show a significant uptrend on the chart, and we thought it might be due to make a move.

It appears that alert was quite timely, as the stock is beginning to rear its head,  gapping up today to the tune of 13% in premarket trading. Key resistance at the 200DMA (8.07) has been broken, and if we can hold above that mark, the next areas of resistance crop up at 8.65, and 9.35.


Comments on Today’s GoPro IPO

A large portion of the buzz on the Street today is emanating from the highly-anticipated GoPro Initial Price Offering, and we’re going to take the same stance we always take in these situations.

Our M/O when a big IPO comes out has always been to wait in the wings until we can gauge the price action. Once we get a good feel for the nature of the beast, it’s then that we’ll step in and utilize the trends to our best advantage in the options chain. This strategy served us well on both the FB and TWTR IPO’s, so we’ll continue to use it here.


Extended Watchlist:
AA, ROYL, DRWI, AGEN, UNXL