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Wednesday, September 30th, 2009
1:15pm (EST)
The market was off to a good start until the Chicago PMI number hit Wall Street. Economists were expecting a reading of 52 for September and we got 46, down from 50 in August.
The Dow had been up over 20 points to 9,764 but quickly fell to a low of 9,608, or a 130+ point loss. Currently the index is at 9,724, down 18. As you can imagine, the action has been choppy to say the least.
Of course, one stock that is having an outstanding day is Nike (NKE, $64.82, up $4.73). We went long on call options in Nike yesterday in the 1pm Update in the Members Area and I had talked about the stock in both of Tuesday’s updates.
The company’s slogan is “Just Do It” and subscribers who “Did It” have banked nearly a 200% profit on the call options that were profiled. I said yesterday that the option market was pricing an 8%-10% move for the stock and sure enough it was right on.
I will update the trade in the morning because we don’t have the final closing numbers but make sure you set stops at $4.50. Our entry price was $1.60 and we had initially set stops at $2.75 this morning. The call options I profiled are currently at $4.90 which is officially a 197% gain from $1.60. Just think, a 10 contract trade would have cost around $1,675 yesterday and would be worth $5,ooo right now. Nasty. Nasty good that is…
The call options easily zoomed past that so we are safe and we can easily lock in profits from here on out. Also, you can sell half now or let the $4.50 stop take you out of the trade entirely.
Research In Motion (RIMM, $68.52, up $0.88) is bouncing back today following last week’s sell-off. I’m not ready to make a call on where the stock goes from here but it is getting interesting. Also, I’m looking at a couple of trades today and doing some more research before releasing them. They should be ready in the morning.
Rick@MomentumOptionsTrading.com
Tags: Nike, Nike call options, NKE, options picks, Research in Motion, RIMM Posted in Apple, Earnings, Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off
Wednesday, September 30th, 2009
9:00am (EST)
Nike (NKE, $63.90, up $3.81) is up over 6% in pre-market trading after beating Wall Street’s estimates on Tuesday. For the quarter, the company earned $513 million, or $1.04 a share, versus $511 million, or $1.03 a share, in the year-ago period. Analysts were looking for Nike to earn 97 cents a share.
Although revenue came in slightly lower ($4.8 billion versus $5.43 billion a year earlier), the company did a great job of managing its gross margins and inventory levels. I mentioned Nike in both updates yesterday and we had the opportunity to go long and strong in yesterday’s afternoon update. Good thing because we could be looking at a 150%-200% gain on the call options I mentioned.
In fact, Goldman Sachs (GS, $183.58) came out this morning and slapped a $75 price target on the stock. Looks like we beat Goldman to the punch on this one. Subscribers, check the Members Area for the update on this HUGE winner.
As we head towards the opening bell, futures are pointing to a higher open as the GDP (gross domestic product) number came in better-than-expected. That has helped push the Dow futures higher by 50 to 9,724. The S&P futures are up 6 to 1,061 while the Nasdaq 100 futures are up 8 to 1,723.
Rick@MomentumOptionsTrading.com
Tags: Goldman Sachs, Nike, options blog, options track record, options trade picks, Stock Market Blog Posted in Company Commentary, Earnings, Economic News, Market Analysis, Option Trades | Comments Off
Tuesday, September 29th, 2009
12:30pm (EST)
The market got off to a good start this morning but has been weaker after the Consumer Confidence numbers were released. The Conference Board said the consumer confidence index fell to 53.1 in September, down from 54.5 in August and much lower than the magical 57 number that Wall Street had been predicting.
Most people are still worried about their jobs and seem to be cautious about spending. Consumer confidence has been a key focus for the bulls in recent months, and this is something to watch. Most economists believe a ”true turnaround” in the economy can’t occur until people start spending money and employers create more jobs. Makes sense, huh?
Friday’s unemployment report will be a biggie and could give us a clear indication on where the market is headed going into earnings season.
Currently, the Dow is down 30 points to 9,759 while the S&P 500 is off by 2 to 1,060. The Nasdaq is lower by 11 points to 2,120.
Nike (NKE, $59.50, up $0.50) will report earnings after the bell today and there is heavy volume in the option pits. The company is expected to report earnings of $0.97 a share, or 6 cents below what the company earned during the first quarter of last year. The market is pricing in an 8%-10% move in the stock and it looks like the options are confirming that notion. If so, that will place the stock at $54 or $66. A Nike October 60 straddle option trade is currently priced at $5.50 which is a good indication of how much the market is expecting the stock to move.
I think there is an great way to play this action while at the same time being safe.
Current subscribers, check the Members Area for the trade.
Rick@MomentumOptionsTrading.com
1:05pm (EST) UPDATE!
Imax (IMAX, $9.40, up $0.60) is up nearly 7% today. The stock has been building a good base in the $8-$$9 range has traded $10 this month. We currently have an Imax trade on that should rebound strong today.
Tags: Nike options, options newsletter, options trading picks Posted in Company Commentary, Earnings, Economic News, Hot Stocks, Market Analysis | Comments Off
Tuesday, September 29th, 2009
9:15am (EST)
Futures are pointing towards a slightly lower open this morning as Wall Street prepares for the latest batch of economic reports today. The Dow rallied more than 120 points yesterday as M&A (merger and acquisition) activity took center stage once again.
The rally could be short-lived if today’s economic news is weak. Today, we get consumer spending which is due at 10am and before the bell we get the Standard & Poor’s/Case-Shiller home price index for July.
Ahead of the opening bell, Dow futures are lower by 5, to 9,723. S&P 500 futures are down 2, to 1,067, while the Nasdaq 100 futures are off by 7, to 1,715.
In earnings news, Walgreen (WAG, $34.19) is up $3.40, or nearly 10%, in early trading after it reported earnings of $0.47 a share, which was 8 cents better than Wall Street’s estimates. Revenue for the quarter was $16 billion, which easily beat estimates.
Nike (NKE, $59.00) reports after the bell today and there will be plenty of positioning before the closing bell as traders bet on the company’s earnings.
Subscribers, check the Members Area for the trade updates.
Rick@MomentumOptionsTrading.com
Tags: Nike, NKE, options trading strategies, WAG, Walgreen Posted in Hot Stocks | Comments Off
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Nike Call Options Up 200%
Wednesday, September 30th, 2009
1:15pm (EST)
The market was off to a good start until the Chicago PMI number hit Wall Street. Economists were expecting a reading of 52 for September and we got 46, down from 50 in August.
The Dow had been up over 20 points to 9,764 but quickly fell to a low of 9,608, or a 130+ point loss. Currently the index is at 9,724, down 18. As you can imagine, the action has been choppy to say the least.
Of course, one stock that is having an outstanding day is Nike (NKE, $64.82, up $4.73). We went long on call options in Nike yesterday in the 1pm Update in the Members Area and I had talked about the stock in both of Tuesday’s updates.
The company’s slogan is “Just Do It” and subscribers who “Did It” have banked nearly a 200% profit on the call options that were profiled. I said yesterday that the option market was pricing an 8%-10% move for the stock and sure enough it was right on.
I will update the trade in the morning because we don’t have the final closing numbers but make sure you set stops at $4.50. Our entry price was $1.60 and we had initially set stops at $2.75 this morning. The call options I profiled are currently at $4.90 which is officially a 197% gain from $1.60. Just think, a 10 contract trade would have cost around $1,675 yesterday and would be worth $5,ooo right now. Nasty. Nasty good that is…
The call options easily zoomed past that so we are safe and we can easily lock in profits from here on out. Also, you can sell half now or let the $4.50 stop take you out of the trade entirely.
Research In Motion (RIMM, $68.52, up $0.88) is bouncing back today following last week’s sell-off. I’m not ready to make a call on where the stock goes from here but it is getting interesting. Also, I’m looking at a couple of trades today and doing some more research before releasing them. They should be ready in the morning.
Rick@MomentumOptionsTrading.com
Tags: Nike, Nike call options, NKE, options picks, Research in Motion, RIMM
Posted in Apple, Earnings, Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off