Tag: SPY

Blue Horseshoe Stocks: Options Recaps, Recovery Play & More


Options Recaps

Our closing thoughts in Friday’s premarket report included some options ideas pertaining to our bullish feelings on AAPL and the SPY.

Specifically, we targeted SPY Weekly $193-194.50 Calls, and AAPL Weekly $115 and $116 Calls and included the following warning: “Trading options with a weekly expiration on a Friday carries an inherently elevated risk-reward factor, and is certainly not for the faint-of-heart, or beginning traders.” That would have been an important thing to remember, because the markets did pull back toward the end of the day, eventually rendering those contracts worthless, but not before opportunities for some big intraday gains were presented.

Early trading ranges in our SPY Calls rendered the chance at gains between 70-130% while the AAPL Calls did considerably better. The $115’s made a 293% move from .27-1.06, and the $116’s took the cake with a 520% surge from a nickel up to .31!

Heron Therapeutics, Inc. HRTX Puts

We also had some successful ideas going in the opposite direction; our bearish sentiment on HRTX paid some excellent dividends via the options chain last week, as we were mentioning on Friday. The stock continued to backslide into the close, reaching the $30-range with a daily low of 30.06. From our observed high of 42.25 at the time of our initial alert last Wednesday that’s roughly a 30% loss.

It will be interesting to see if this morning’s PR from HRTX affects the dynamics of the chart.

Clean Coal Technologies, Inc. CCTC

We also want to make another quick mention of CCTC, which has continually set new highs for us in the month of September.

We tracked the stock to some more nice gains last week, as it made a healthy intraday move of 21% from .72 to .87. That extends the total range we’ve observed following our initial alerts earlier this month from a low of .36 to Friday’s high; a total move of 142% in just two weeks’ time.

Totally Hemp Crazy, Inc. THCZ

We tagged this old familiar play on Friday for the first time since spring, and it turned out to be fortuitous timing as the stock made a noteworthy intraday jump.  THCZ traded from a low of .09 up as high as .1189, a 32% spike.

We’ll begin to pay closer attention to this and other cannabis-related stocks as election time draws nearer and the issue of marijuana is once again tested on ballots. We’ll be open to the possibility of new waves of attention for the sector as a whole, and be sure to keep our ear to the tracks for relevant developments.


Pier 1 Imports, Inc. PIR

A failure to beat Wall Street’s expectations on both guidance and earnings led PIR to gap down on Friday, though the dip wasn’t sustained. After seeing a low of 6.84 the stock did manage to recover quite a bit of ground into a 7.61 close. This transpired at a time when the chart was already fairly oversold, and that effect has been magnified as we point out on the chart snapshot below.

We’re going to have PIR on an extended-term recovery watch. A return to even the 50DMA would spell significant gains from the current juncture.

Extended Watchlist:
GEQU, COTE, EQLB, IMUN, NESV, PBMD

Blue Horseshoe Stocks: UVXY, VXX Options & More

No Rate Hike – SPY & VXX Options Ideas

Another eagerly-anticipated FOMC meeting came and went without an interest rate hike by the Fed yesterday, and as a result we observed a dramatic rise in volatility for the markets. We expect that turbulent activity to carry over into today, and with the added caveat of it being expiration day for weekly contracts, it could give rise to some serious options-trading opportunities.

Currently we’re seeing the VXX and UVXY gapping up in the premarket this morning. We will be on the lookout for a potential bounce in the markets followed by a fade to the downside. It would be at that point we’d look to get positioned in some Weekly VXX and UVXY Calls, specifically VXX $22.50-25.50 Calls, and the UVXY $48-52.50 Calls. Alternatively, we could take advantage of the same sort of scenario with SPY Weekly $197.50-194.50 Puts.

Part of the beauty of trading options is, if by chance the markets undergo a more sustained rebound and operate contrary to our initial gut instinct, we can simply flip those ideas to the other side of the fence (Puts where we mentioned Calls, and vice-versa) while striking in the same target ranges.

Great Rock Development Co. GROC

We also want to make mention of a stock we tagged for observation in Wednesday’s report which has made a nice intraweek move. GROC traded at a low of .0055 that morning, and followed up with a couple of solid sessions.

Yesterday. the stock managed to close at .0085, which represents a 55% session-over-session increase, and it occurred on slightly more than 3.5X the average monthly trading volume.

Global Digital Solutions, Inc. GDSI

GDSI is another subpenny play that caught our eye yesterday as it rebounded off of a new 52-week low. This stock has been steadily trending down for a protracted period, and is just about reaching the point where a more significant recovery could be in the cards.

It’s self-evident on the chart below, which shows that GDSI is heavily oversold at the present time. Add in a recent bullish cross on the MACD, and this is one we’ll want to monitor more closely in coming sessions. We’ll look for it to continue to register higher highs and higher lows off of that bottom.

Extended Watchlist:
MDBX, RDSH, GLD, CHLO

Blue Horseshoe Stocks: SPY Options Recap & More

SPY Options Update

We were so spot-on with our options alert on the SPY in yesterday’s premarket report, that we feel it necessary to quote our alert verbatim. We stated: “With another reversal appearing likely with this morning’s gap-up in the markets, we’ll want to swing our attention in the opposite direction. The SPY generally trades inversely to the UXVY, thus we’ll be monitoring SPY Weekly $195-197 Calls in the event of a continued uptrend signal.” 

We certainly hope a good number of our readers were able to catch that, as every single one of the contract sets in our targeted range could have facilitated sizable gains on the session. Here’s a breakdown of the possibilities:

$195 Calls  – Daily Range: 2.05-3.50 – Max Gain: 71%
$195.50 Calls  – Daily Range: 1.75-3.15 – Max Gain: 80%
$196 Calls  – Daily Range: 1.48-2.80 – Max Gain: 89%
$196.50 Calls  – Daily Range: 1.25-2.45 – Max Gain: 96%
$197 Calls  – Daily Range: 1.01-2.15 – Max Gain: 113%

In order to take advantage of the SPY moving forward, we’ll need to see a continued boost in stocks. In that event, we may look to roll our strike prices closer to the money, namely the Weekly $198-200.50 Calls.

Apple to Announce iPhone 6S Plus – Options Idea

With Apple officially announcing the release of the iPhone 7 today, which is slated to go on sale at the end of next week, we’re going to want to stay ready for the possibility of an options play to one side or the other. We’ll need to guage public reaction to the new phone; an underwhelming product could result in a PPS decline for AAPL, in which case we’d be monitoring Weekly $112-50-114.50 Puts. In the event of a mainly positive reaction, of course, we’d flip that idea to the Call-side in the same strike price range.

Akebia Therapeutics, Inc. AKBA

AKBA is undergoing a mega gap-up in premarket trading today, largely due to yesterday’s after-hours report of positive Phase II study results. We’ll look to possibly take advantage of the situation; with such a rapid move up, it leaves AKBA open to a dip-and-rip pattern on the chart when sellers come out of the woodwork to take profits off of the table.

We’ve pointed out the previous swing highs as levels at which AKBA will need to maintain support on the dip, in order for us to remain interested:

Akebia Announces Positive Top-Line Results from its Phase 2 Study of Vadadustat in Dialysis Patients with Anemia Related to Chronic Kidney Disease (Tue, Sep 8)

Extended Watchlist:
UAPC, CCTC, TPIV, ASTI

Blue Horseshoe Stocks: UVXY Recap, Options Review & More

Options Updates

ProShares Ultra VIX Short-Term Futures (UVXY) – 

In Friday’s premarket report, we essentially served up our readers an absolute gem of an options idea on a silver platter, when we identified the high potential of some prime intraday flip opportunities.

We posited that the overall markets would see a pullback, and offered our take on a good way to leverage that eventuality for quick-strike gains in weekly UVXY contracts. The markets were indeed hammered back for most of the session, and as a result, our assumptions paid off in spades.

Our specified target range included UVXY Weekly $73-78 Calls, and every last set of contracts provided us with the chance to bank multi-bag gains. Check it out:

$73 Calls  – Daily Range: 2.17-8.10 – Max Gain: 273%
$74 Calls  – Daily Range: 1.47-7.20 – Max Gain: 390%
$75 Calls  – Daily Range: 1.17-6.40 – Max Gain: 447%
$76 Calls  – Daily Range: 1.10-4.53 – Max Gain: 312%
$77 Calls  – Daily Range: 77-4.34 – Max Gain: 464%
$78 Calls  – Daily Range: .57-3.68 – Max Gain: 545%

Updated Idea:

With another reversal appearing likely with this morning’s gap-up in the markets, we’ll want to swing our attention in the opposite direction. The SPY generally trades inversely to the UXVY, thus we’ll be monitoring SPY Weekly $195-197 Calls in the event of a continued uptrend signal.

____

Longer-Term Ideas – Update

For each of the past two Thursdays, we’ve mentioned our interest in a set of longer-term options ideas for a number of tech stocks, namely the 9/18-10/02  FB, GPRO, GMCR, AAPL, NFLX, and TSLA Calls.

With between 1.5-3.5 weeks until expiration on the contracts contained in that range, we’ve seen some nice moves already, and we want to continue to keep an eye on this whole group. With the volatile flux we’ve observed in recent market activity, further opportunities could certainly present themselves in coming sessions.


PharmaRoth Labs, Inc. ROTH

We noticed some exciting news hitting the wires this morning for ROTH, and the PPS is currently down to a relative bottom, so we’re going to tab this subpenny play for extended observation.

Blue Horseshoe Stocks: ADAT, Options Recaps & More

Authentidate Holding Corp. ADAT

Despite turbulent overall conditions, to this point we’ve succeeded in weeding out at least one big winner each day this week, and yesterday’s was most assuredly ADAT. We tagged this stock after noticing some unusual premarket activity, and it proceeded to break out immediately following the opening bell.

We witnessed a big-time surge from a low of .15 all the way up to .55 in the first 35 minutes of the session. That’s an eyebrow-raising 267% rip! Big cheers go out to any of our readers who were able to ride that massive wave of momentum to quick intraday profits.

Bon-Ton Stores, Inc. BONT

We called BONT as a bottom-watch play in Friday’s premarket report, noticing it testing new annual lows, and described it as being generally undervalued.

Our instincts proved to be quite accurate; the stock found its ultimate low of 2.89 during the next session on Monday, and followed that up with a tremendous rebound yesterday. The stock ran back to touch a high of 4.15, representing a session-over-session swing of 44%

Moving forward, we’ll look for BONT to continue to build higher levels of support. The stock will need to maintain above yesterday’s low  to retain our immediate interest, but remember, we like to begin to monitor retail stocks like this one more heavily as schools go back in session and the holiday season rapidly approaches.

Options Ideas – Updates

We’ve got to update our subscribers on the performance of the options ideas we’ve been tracking this week for the second straight day. We zeroed in on the performance of Weekly UVXY $49 Calls and Weekly SPY $190 Puts, which we had already seen make considerable moves on Monday, and the opportunities just kept coming. Just look at the kind of gains that were offered up:

UVXY $49 Calls  – Daily Range: 5.00-19.30 – Max Gain: 286%

SPY $190 Puts – Daily Range: 1.10-4.77 – Max Gain: 334%

The markets are gapping up this morning, so we’ll be on the lookout for a possible selloff from profit-taking followed by a subsequent rebound, for the chance at added opportunities in these plays as we progress through midweek.

Extended Watchlist:
ABGB(Gapping Up, Gaps to Fill on Chart), GSAT and GASL(52-Week Lows)

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