Momentum Options Trading Blog
Daily market updates at 9am & 1pm EST
Blog Roll
Watch the VIX
August 28th, 2014 Mid-Market Update for 8/28/2014

12:50 p.m. (EST)

The bears appearance was expected today as I gave everyone a heads-up there could be a pullback. Futures were lower throughout the night and got progressively worse ahead of this morning’s open confirming a rocky open.

Of course, the market pundits are pinning the pullback to negative headlines and worsening Russian/ Ukraine news but support is holding and there are other clues suggesting higher highs are still in store.

The talking heads continue to complain about the “lack of volume” but I never worry about overall market volume. I worry about liquidity in certain trades but the lack of market participation is due to the usual summer doldrums. Wall Street and Washington are returning from their long, and luxurious planned vacations next week so volume will be back. So will volatility.

I haven’t been too worried about today’s back test as the one indicator I have banked on all year continues to give me great clues. I have been mentioning all week the levels to watch on the S&P Volatility Index ($VIX, 12.09, up 0.31) would be 11.50-12.50.

I said coming into the the previous week, with the VIX at 13.15, a close below 12.50-11.50 last week would confirm new all-time high on the S&P index and a push past 2,000. That we got.

The VIX came into this week at 11.47 and I mentioned the bulls had little wiggle room to hold 11.50. With the VIX at 11.70 on Monday, the 12.50 level became more important and has held all week until today’s pop to 12.73.

If the bulls can keep the VIX below 12.50 today, then a continued rally could be on tap. There is wiggle room to 13.50 and Friday’s have been bearish of late.

The Dow has fallen four of the past Friday’s so if there is another weak Friday then 13.50 would need to hold or it would suggest further weakness next week. If the VIX closes below 12.50 today and Friday is a bullish, I believe the current rally could extend into mid-September.

As you can see, today and tomorrow’s VIX closes could offer great clues into how next week plays out.

Heading into the second half of trading, the Dow is down 31 points to 17,090 while the S&P 500 is lower by 2 to 1,998. The Nasdaq is declining 4 points to 4,565 and the Russell 2000 is backing down 5 points to 1,167.

With near-term support holding, things might look bad but overall these are good signs higher highs are still on the bullish tap.

I recommended a New Trade earlier today and have updated my near-term target for the stock and options. There could be additional New Trades and/or Profit Alerts into the close so stay locked-and-loaded.

Comments Off Daily Update – New Trade (MGM) for 8/28/2014
August 28th, 2014

11:35 a.m. (EST)

I’m still putting the finishing touches on today’s Mid-Market update as there are a few clues I’m watching to see how tomorrow and next week might play out.

In the meantime, I mentioned I would be building out a new batch of option trades going into October, November and December.

There are a few open trades from June, July and this month still playing out but now is the time to build new positions into the back end of the year.

Today’s recommendation is on a stock that is breaking down like a rented mule and I will be using put options to play the short-term weakness.

Subscribers, check the Members Area for the update.

Comments Off
Market Ends Mixed
August 28th, 2014 Pre-Market Update for 8/28/2014

9:00 a.m. (EST)

Wednesday was a day of rest for both the bulls and the bears, as the market traded in a tight range and finished flat for the most part. Tech traded to a fresh high but went unnoticed. Support held, so overall, it was a bullish session despite the lack of enthusiasm.

The Dow advanced 15 points, or 0.1%, to settle at 17,122. The blue-chips traded up to 17,134 on the open before fading to 17,090 shortly afterwards. The remainder of the session was spent in the green with a late-day back test to the low before a positive close. Resistance is at 17,200 with fluff up to 17,350. Support at 17,000 has held for five straight sessions with backup at 16,800.

The S&P 500 gained one tenth of a point to finish at 2,000. The index stayed in a 6-point range with the bulls pushing 2,002 at the start of trading. The index meandered in the red for much of the session and hit its low late in the day before holding the 2,000 level. There is bullish room to run to 2,020-2,025 over the near-term as long as 1,985-1,975 holds on a pullback.

The Nasdaq slipped a point, or 0.02%, to end at 4,569. Tech reached another 52-week peak of 4,575.81 before a 14-point fade to 4,561. Near-term support at 4,550 held, and there is further help at 4,525-4,500. However, the bulls are looking to clear 4,600 ahead of the weekend.

The Russell 2000 declined 2 points, or 0.2%, to close at 1,172. The small-caps topped Tuesday’s high of 1,176 by a point on Wednesday’s open but struggled for much of the second half of trading. The bears pushed 1,171 late, but the bulls held the 1,175-1,170 zone by the closing bell. There is risk to 1,160 on a drop below 1,170. Short-term resistance is at 1,185.

The S&P Volatility Index ($VIX, 11.78, up 0.15) stayed relaxed for the second-straight session, as the bears held 11.50 with the bulls holding 12.50. The range stayed between a half-point of 11.54-11.93.

I mentioned that the second-to-last trading day in August has favored the bears in recent years, and futures are lower heading to press: Dow (-42); S&P 500 (-5); Nasdaq 100 (-9).

Comments Off
Guess What Day It Is – Profit Alert (YHOO)!!!
August 27th, 2014 Mid-Market Update for 8/27/2014

1:40 p.m. (EST)

Yes, it’s hump day and it’s also another bullish day for the portfolio. However, trading has been a little choppy as the bears are trying to get into the mix but the bulls are trying to hold positive territory into the close.

There are 2 more trading days left in August and I predicted the bulls were on track for a record month as a summer rally could play out. Often times, when Wall Street is away, the bulls will play, or the bears will roam, depending on which side of the boat the suit-and-ties are on.

I have been mentioned a rising tide tends to lifts all boats and all that’s left is the small-caps. With the Nasdaq, Dow and S&P all breaking out to fresh all-time and 14-year highs this week, it is now up to the small-caps (and the Financial stocks) to show leadership.

So far, so good.

Although the bulls continue to show strength, the next-to-last trading day for August has been bearish over the past two decades. While this omen could weigh on the indexes tomorrow, I’m not putting the bear in front of the bullish cart. However, it is a strong stat.

The first trading day in September has been bullish nearly 70% of the time over the past 2 decades. This leaves Friday as a toss-up but it too, has been bearish in recent weeks.

I have been mentioning the suit-and-ties could be behind the 8-ball once vacation is over and with the current game plan being executed beautifully by the bulls, next week is playing out perfectly.

Heading into the second half of trading, the Dow is up 13 points to 17,120 while the S&P is higher by a pulse and holding 2,000. The Nasdaq is also up a point to 4,571 while the Russell 2000 is declining 2 points to 1,173.

The current trades continue to shine like a dime and I am once again ringing the register on another profitable trade this week. This one made 36% in a little over 2 weeks.

Subscribers, hit the Members Area for the latest trade updates and stay close to your email inboxes. I could have additional updates into the close.

Comments Off
Bulls Need a Bigger Bandwagon
August 27th, 2014 Pre-Market Update for 8/27/2014

9:00 a.m. (EST)

The bulls continue to drop jaws and defy Wall Street’s gravity. Tuesday’s action produced fresh all-time highs, with the small-caps leading the way higher. Yes, the small-caps.

Financial stocks continue to show strength as well, with the Financial Select Spiders (XLF, $23.37, up $0.05) also setting a fresh 52-week peak.

Overall, volatility stayed relaxed.

With the talking heads continuing to confuse investors, I mentioned to stay long and strong to start the week while Wall Street is away. The clues I was hoping to see are being left by the bulls, and I’m following their trail.

The Dow gained 30 points, or 0.2%, to close at 17,106. The blue-chips traded to an all-time intraday peak of 17,153.80 before settling just below their previous 52-week high of 17,151. The index remains on track to trigger my near-term upside target of 17,350 as long as 17,000-16,800 holds as support.

The S&P 500 added 2 points, or 0.1%, to settle at 2,000. The index traded to an intraday peak of 2,005.04 and made its 30th closing high for 2014. I have talked about the bulls pushing 2,025 over the near-tern, but my year-end Price Target of 2,100 is squarely in focus. I can imagine there will be a number of suit-and-ties upgrading their targets next week on the S&P once they get back from vacation. It will be a joke, and it is what it is. Support is at 1,975.

The Nasdaq advanced a lucky 13 points, or 0.3%, to end at 4,570. Tech blasted to another 52-week high of 4,575.99 and remains on track to trip my near-term 4,600 target. Support is moving up, and the bulls are trying to build a base at 4,500. Backup is at 4,450-4,400 if there are cracks.

The Russell 2000 jumped 10 points, or 0.9%, to finish at 1,175. I have been mentioning that a close above this level would be bullish for a possible run to 1,185-1,200 over the near-term, and the small-caps ended a point off their high. Support will try to hold at 1,165-1,160 on a pullback.

The S&P Volatility Index ($VIX, 11.63, down 0.07) traded down to 11.33 on the open before popping to a high of 11.93. The see-saw battle over 11.50 ended in the bears favor, but they are having trouble at 12.50. The bulls need to get below 11.50 ahead of the weekend to confirm continued highs into next week.

I added a New Trade to Momentum Options lineup yesterday and closed another winning one for the Weekly Wrap. I have updated the Exit Targets on these as well as the Stop Limits on the profitable trades.

Futures look like this ahead of the open: Dow (+13); S&P 500 (+1); Nasdaq (+1.50). Let’s go shake-and-bake!

Comments Off
« Older Entries
Weekly Wrap Subscription

    Stop Missing Out!
    Real-time trades and detailed stock market analysis for the past week and week ahead.

Follow us on Facebook
Follow us on Twitter

Biggest Winners

    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

    If you are missing these juicy profits, come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2012 Track Records by sending us an email or filling out the box below.

Trader Comments:
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year of membership rather than the one quarter. Thanks again, and LOVE YOU ALL. REGINA L.

    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help. STEVE T.

    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide. SCOTT H.

    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485 PETER G.

    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming. LAWRENCE O.

    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again! C.J.

    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace! SHAUN

    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good profitable calls. Keep up the good work. MICHAEL K.

    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!
    PARAG P.

    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN. JAY P.

    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You. MIKE

    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks. TRISH D.

    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock! MIN L.

    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you! JOE G.

    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming. GREG F.

    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade. NOEL

    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today. TODD F.

    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you! PAUL H.

    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ” NOEL

    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.” CHRISTIAN

    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.” JOHN

    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.” CHARLES M.

    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.” BRYAN C.

    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.” JOHN H.

    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.” JEFFREY

    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.” ED

    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.” GREG

    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.” KEN

    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.” GARETT

    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.” TERENCE

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel


    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony


    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob

Follow us on Twitter