Tag: SHMX

Blue Horseshoe Stocks: PBR Update & More

Petroleo Brasiliero S.A. (Petrobras) PBR When we touched base with PBR on Wednesday morning, we mentioned that we were expecting some opportunities to come our way provided that the stock could hold support at or above its 200DMA (13.69).

We also showed interest in the July 19th $15 Calls, which, leading up to that point, had been trading in the .30-.38 range, and even ventured so far as to say that a double or triple could be possible. That move came rather quickly over the remainder of the trading week, as those contracts dipped as low as .25, and by the end of the day on Friday had come all the way back to close at .61.

For us, that represented an excellent three-session move, allowing gains of up to 144% for options traders. The stock itself made a modest move up also, to the tune of 8% from 13.62 to 14.77.

The PBR chart is still looking quite ripe, with several bullish indicators catching our attention. The RSI is strengthening rapidly, there appears to be a MACD cross in the making, and provided the stock can maintain support at or above the channel between the 50DMA of 14.19 and Friday’s swing low of 14.32, we like the chances of seeing even more gains from PBR.

For intraday/intraweek flip opportunities, we can look into the $14-$15 Weekly Calls, but granted the overall trend continues, a longer-term play will continue to be the 07/19 $15’s, which as we said, have already afforded us a double-bagger.

Shamika 2 Gold, Inc. SHMX

On Thursday, we added SHMX to the mix as a sub-penny play that had struck us as having some potential. As with the majority of stocks trading in the triple-zero range, SHMX is susceptible to rapid swings in price, and we saw that first hand as we closed out the week. On Friday, the stock saw a low of .0003, and a subsequent upswing to its closing price of .0005.

That made it possible for traders to nab a quick profit of 67%  We always want to be extremely cautious when dealing with volatile plays in this price range, as they are not for the faint-hearted. Quick-strike trades are the order of the day, and for more skilled traders, proper timing of each dip and rip can lead to gains really piling up.

Extended Watchlist:
TMSH, TBEV, IDIX, ACHN, SQNM, DRL, PGNX, PFIE, LIVE

Blue Horseshoe Stocks: VNDA, NQ & More

NQ Mobile, Inc. NQ

Yesterday, we pointed out all the reasons why we felt that NQ was in a good position to make a run, and we certainly hope folks took it to heart, because the stock followed it up with an solid session.

We first observed a morning low of 9.40, and NQ subsequently made a healthy move to a high of 10.85 on the afternoon, which was good for an intraday gain of 15%

On the options side of things, the $10 Calls dipped as low as .35, and went on to trade as high as a 1.00. This provides a good example of why we’ve gotten more and more into trading options on big board plays. Even just a modest move on the chart can translate into huge gains on the right contracts.

NQ is gapping up to the tune of another 5% this morning, so we’ll continue to keep an eye on things as we head into week’s end.

So far, from the low we observed following our tag of NQ toward the end of last month (6.25) we’ve seen gains on the order of 77%

Vanda Pharmaceuticals, Inc. VNDA

VNDA was another NASDAQ-listed stock that appeared in yesterday’s report on the Extended Watchlist. It would trade in a range from 11.00-12.99, an 18% increase. Another modest move compared to what we’re accustomed to with the pennies, but coming from a big board play, 18% in a single afternoon is very impressive.

Like NQ, VNDA was trading near a relative bottom when we passed it along to readers, and with this new-found momentum, it will be interesting to see what happens next.

Whether or not VNDA can crack through its 50DMA (13.04) is going to be the deciding factor as to whether there’s more upside here. Yesterday’s high came in just shy of that mark, so we’ve got some resistance to contend with, but we’ll certainly be monitoring very closely for a break of that level on the chart.

Shamika 2 Gold, Inc. SHMX

SHMX is a sub-penny breakout play that we want to add to our radar this morning. Yesterday the stock traded 9x its 3-month average volume, and traded in a range from .0003-.0006. It always a good idea to be cautious when dealing with these triple-zero stocks, but as most of you know, when the potential risk is high, the potential rewards can be even higher.

We’re going to monitor this play for further activity, more specifically, a potential dip-and-rip. Should SHMX taper off and pull back, that’s where we’ll be waiting to strike. Correctly timing the bottom on one of these super–subpenny stocks can treat traders to a heck of a bounceplay as we’ve seen so many times in the past.


Side Note: AAPL Options

AAPL continued to break out yesterday past last week’s swing high of 644.17. Remember, on Monday we reminded everyone that the AAPL options chain was a good candidate to provide us with opportunities over the course of the week, and that has certainly been true thus far.  The $640 Calls were as cheap as 1.35 on that day, and by yesterday, they were going for as much as 9.50.

Huge moves like that have almost become commonplace, as we’ve tracked AAPL through a more-than 100-dollar increase in just the past couple of months.

Extended Watchlist:
NEWL, S, HALO, AXAS, GIGA, BBRY