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Archive for May, 2009

Home Depot and Lowe's Trade Lower/ Trading Service Update

Thursday, May 28th, 2009

9:00pm (EST)

Home Depot (HD, $22.70, down $0.63) and Lowe’s (LOW, $19.02, down $0.61) lost 3% after a report showed first quarter mortgage delinquencies jumped to 12%. That means more than one in 10 people are behind on their house payments.

Not only that, home owners with good credit are starting to feel the pinch. In fact, they now make up the largest share of foreclosures as job losses and pay cuts continue to cut like a knife.

All of this could mean more foreclosures and add to the already growing housing inventory which in turn depresses building activity. I had mentioned the sector a couple of weeks ago and said now was not the time to go chasing.

That would include Lowe’s and Home Depot. I would love to see Lowe’s fall back to $17 which is support and if it falls below that level it could test its March low of $13. Home Depot could get interesting at $20. They got a pop on good earnings but nobody is buying the higher priced items. We will have to see how they trade and it’s possible they may not even get to our “alert” prices. If they do, we can then decide if we should go long or short.

Which brings me to another point. I wanted to give everybody some more details on our new OptionsMentoring.com trading service. It is going to be a monthly service that allows you full access to our exclusive menbers area. Here you will find archived training sessions that you can view anytime at your leisure. Plus, we will be offering live training classes three days a week. You will also have unlimited email and phone support as well as our trade picks.

Folks, this is an incredible deal because you will learn so much about options that will make you a better trader. And if you are brand new to options trading, this program is a must! You will learn credit spreads, directional trading, chart reading and much more. The response we have received has been great and I encourage those of you who haven’t emailed me to do so. I want those of you who follow me to be the first to get in.

Rick Rouse
Rick@OptionsMentoring.com

Blue Coat Systems Delays Earnings/ New Trading Service for OptionsMentoring.com

Thursday, May 28th, 2009

7:30am (EST)

Blue Coat Systems (BCSI, $16.00, down $0.54) was scheduled to report earnings after the bell on Wednesday but delayed the announcement until next week. The company said it needed the extra time to complete the books for the quarter that ended April 30th. That is not a good sign if you are a shareholder.

The company also added the postponement was due to a recently identified “irregularity” with one of its shipments in its European operations. What we want to watch for is the earnings number. Blue Coat is expected to report earnings of 18-24 cents a share on revenue of $112-$118 million. Wall Street has got them penciled in at 21 cents, $114 million.

Usually something like this is not going to produce an earnings surprise and it’s possible this event is no big deal. But it is an interesting development. There may be a trade but we will have to wait to see how this one shakes out.

The good news is that if there is a trade, you will soon have access to it. I have been mentioning the changes we are making and I’m so excited that I can hardly wait to reveal the details.

I can tell you this. The service we are about to roll out is going to knock your socks off and it will be VERY affordable. I should have more details by the weekend in the Weekly Wrap and will keep you updated in the blog.

We have heard your requests and we are working hard to offer you the best options mentoring program on the planet. If you are new to options trading, this is one event you will not want to miss. Stay tuned…

Back to Blue Coat… the stock was down 10% in after-hours trading last night. The June 17.50 calls (IYUFQ, $0.75, down $0.11) traded 1,200 contracts and hit a high of $1.00 on Wednesday. The June 15 puts (IYURC, $0.85, up $0.20) traded about 400 contracts so traders were taking the bullish side of the trade going into the close.

Send me an email if you are interested in the mentoring/ trading service. We will probably have a limited number of spaces only because of the incredible value we will be offering. I want those of you who have followed me on a regular basis to have first dibs. Man, I can’t wait to share the great news!

Rick Rouse
Rick@OptionsMentoring.com

Apple Gets an Upgrade, Keeps on Rolling

Wednesday, May 27th, 2009

10:30am (EST)

Apple (AAPL, $133.28, up $2.50) gained 7% yesterday and is up another 2% this morning following an analyst upgrade. The stock opened at $124.82 yesterday and made the majority of its move in the first hour of trading but held steady all day long.

The June 125 calls (APVFE, $10.75, up $2.00) closed at $3.80 last Friday and gained well over 120% on Tuesday and are up another 20% today. The call options opened for under $5 on Tuesday so even if you were late getting in by Friday, there was a good chance to make 100% once the market started rocking on Tuesday. (The trade is already over so please don’t start new positions).

The upgrade came on bigger expectations on what impact the latest iPhone could have on revenues and the price target was raised from $180 to $105. Wow. We all know MacWorld is coming up and the demand for the iPhone will hit a feverish pitch again. There have already been reports that AT&T is letting inventory run out so we will have to see if we get the overnight campouts this time around…

Rick Rouse
Rick@OptionsMentoring.com

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Trader Comments:

    REGINA L.
    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.

    STEVE T.
    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.

    SCOTT H.
    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.

    PETER G.
    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

    LAWRENCE O.
    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.

    C.J.
    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now 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 newsletter...it 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!

    SHAUN
    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!

    MICHAEL K.
    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.

    PARAG P.
    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!

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

    MIKE
    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.

    TRISH D.
    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.

    MIN L.
    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!

    JOE G.
    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!

    GREG F.
    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.

    NOEL
    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.

    TODD F.
    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.

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

    NOEL
    “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. :) ”

    CHRISTIAN
    “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.”

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

    CHARLES M.
    “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.”

    BRYAN C.
    “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.”

    JOHN H.
    “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.”

    JEFFREY
    “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.”

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

    GREG
    “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.”

    KEN
    “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.”

    GARETT
    “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.”

    TERENCE
    “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.”

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