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1:30pm (EST)
The market is regaining much of its losses from yesterday, as the major indexes have rebounded strongly and are back into our resistance zones we continue to outline. The bulls are making a run towards the April highs and don’t believe China’s surprise interest rate hike is as serious as the bears we making it out to be and that it will not dampen the global economy.
China’s stock market showed slight gains in overnight trading and futures were pointing towards a slightly higher open which is what we got this morning. The rally started to pick up steam as the dollar started to lose ground again. We mentioned the correlation between a weak dollar and a higher market and that is exactly what you are seeing.
As we prepare to go to go to press, the Dow is higher by 150 points, or 1.4%, and is at 11,129 while the S&P 500 is up 15 points, or 1.3%, to 1,181. The Nasdaq is showing a 29 point pop, or 1.2%, and is at 2,465.
We wanted to spend some time today to talk about our Watch List which is inside our Members Area and our option trading manual. The Watch List is list of stocks we feel are on the verge of a major breakout or breakdown and sometimes when our trades recommendation are full, we will list these stocks as we don’t like to have over 10 open trades recommendations going at one time.
Many of you know our love for Biotech stocks and we currently have two open option trade recommendations that we have our subscribers in. However, we have been following a few other companies in the sector so we thought we would give you a peak today on our comments:
Amylin Pharmaceuticals (AMLN, $10.18, down $10.31)
November 24 calls (AMLN101120C00024000, $0.01, down $0.49)
November 17 puts (AMLN101120P00017000, $6.85, up $6.15)
November 20 calls (AMLN101120C00020000, $0.02, down $2.03)
November 20 puts (AMLN101120P00020000, $9.85, up $8.25)
Action: We listed the put options today and the November 20 straddle trade because we wanted to show you the power of strangles and straddle option trades once again.
Of course, we did not have these listed, yesterday, because we didn’t expect the FDA news until next week for Amylin’s obesity drug, but we should have, because some readers have emailed and asked why WE didn’t recommend a strangle of straddle option trade for this one even though we knew a big move could be coming.
We have been talking about the companies that are in competition to bring for a weight-loss drug to market and the FDA’s latest rejection shows how high the risk/ reward can be.
In our trading manual, How to Trade Options on Momentum Stocks, we talk about playing the Biotech space and how drug stocks can make huge moves during phase 3 trials. We also show you how to setup your own Watch Lists and teach you how to find strangle and straddle option trades. Included with your course purchase is another manual, Momentum Stocks Watch List, which covers dozens of sectors and over 600 stocks. We tell you which stocks to watch and what drives these sectors higher or lower.
When we issue a trade recommendation, we will tell you why we are doing the trade. With stocks on our Watch List, we know a big move is coming but we aren’t sure which way sometimes.
If we had listed all of these options last week or yesterday, we would have had a successful trade. However, we felt there was a good chance of the drug getting approved by the FDA but they wanted more data. This is the risk we carry with one of our current trades which is why we made it a strangle option trade.
Our point is our option trading manual is a blueprint on how to find successful option trades because we cannot cover thousands of stocks. We do a pretty good at following several hundred stocks but there is news we miss or rumors we don’t hear or research that is unfinished sometimes which is why we have “ideas” on our Watch List.
Folks, this is not a sales pitch to buy our option trading manual, which is the CHEAPEST in the industry, but a suggestion for those of you who really want to learn how to find explosive situations to do your own trades with.
We are offering a free 1-month subscription to our Members Area (if you purchase the material this month) which is always packed with current trades AND stocks on our Watch List that are set to make big moves. Once you read our trading manual and we have you under our wing for a month, you will start to see the market in a different light.
We are also doing training videos for the option trading manual that will cover all of the areas we talk about. We are rolling these out on a weekly basis until we cover everything which is when the price will go up for the cost of the course.
We appreciate those of you who have taken advantage of our special offer and when the videos are done we will package them in a DVD to be included with the course. For those of you who already have the course, we will ship them free when we get them ready and we are creating a special area on the website for them. This is why we have been offering a special introductory rate and a FREE 1-month membership through the end of October.
We seriously hope you take the next 10 days to think about taking your option trading to another level. Trust us, once you learn to find your own trades, there is no better feeling then making 100%, 200%, or even 500% on a trade that you did research on.
Again, we wished we would have made these options and official recommendation and maybe we would have after doing more research over the weekend but the news came out over a week early. The current trade we are in, the company is expecting a FDA decision by October 29.
News could come early and it could be good or bad, but either way, we protected ourselves by playing both sides of the trade while still giving us a chance to make up to 500% or even more on the trade. We are telling you, if the FDA approves the drug of the company we currently following and have our subscribers in the trade can double or even triple from current levels.
It is a $4 stock and we think there is a chance shares could hit $20 or $1.50. The option premiums were cheap and the trade may or may not work out as we have planned but our research shows we are in for an explosive move either way.
We also got some good news on a couple of current trades we recommended as Juniper Networks (JNPR, $32.04, up $1.50) is up 5% after announcing earnings this morning. There were a lot of people betting against this company and shares dropped below $28 in after-hours trading last night but opened higher than yesterday’s close which was a good sign for our call options.
We are on the fence on banking profits on TWO other trades but we wanted to show you there are always opportunities in this market to find option ideas.
We have a lot more to cover in our Members Area but we wanted to show you the power of options and how little it costs to do some of these strategies. We also wanted to remind you that time is running out to hit us up on our special offer.
In fact, we are running a little late today because we were finishing up our research for a NEW TRADE which we have listed and we are going to try to get into it today at our price. Subscribers, check for the important trade updates.
