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Sunday, March 18th, 2012
11:30pm (EST)
1. Market Summary
2. Apple Hits $600 as New iPad Makes Debut
3. Hershey (HSY) –Everybody Loves Chocolate
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a great start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 35-11 over the first 3 months of 2012. Our list of winners include 131% and 114% on 2 MGM trades, 200% on SGMS, 107% on AFL, 100% on STX, 82% on TSM and 125% on MSFT just to name a few. We currently have 3 triple-digit winning call option trades, one a 300% winner and another is up 400%, that are still open in our portfolio. In other words, these solid gains could have turned a $10,000 trading account into $32,000 for a 220% return using our recommendations so far this year!
Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 17-0 for 2012. We were 16-0 in 2011. Even better, we could add another 4-5 winners in April! Some of our recent winners include 27% on CLNE, 17% on VVUS, 19% on MGM, 18% on DNDN, 20% on BAC, 55% on SZYM, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
So what are you waiting for? Sign-up now and receive access instantly to our stock options trading recommendations!
Tags: stock options trading advisors, stock options trading recommendations
Posted in Apple, Covered Calls, Market Commentary | Comments Off
Thursday, March 8th, 2012
9:00am (EST)
The market rebounded on Wednesday following an upbeat day on news that Greece would meet today’s deadline for its bond debt-swap while Apple (AAPL, $530.69, up $0.43) garnered much of the attention here at home. Although trading was choppy for the first hour, the bulls maintained a steady stream of momentum throughout the day as the indexes reached new highs in the last hour of trading. The bears made a brief showing at the open and worked on the Dow but they had little reason to stay once prior support levels were cleared.
The Dow added 78 points, or 0.6%, to close at 12,837. The blue-chips tested the 12,800 level at the start but the bears were able to draw blood after pushing a low of 12,751. It was only a scratch though as it represented an 8-point loss at the time. The bulls made it up to 12,857 and we would like to see 12,900 cleared today on the close. A move under 12,750 brings 12,600 back into play.
The S&P 500 gained 9 points, or 0.7%, to settle at 1,352. The index held green all day and pushed a high of 1,355. It was sweet to see the bulls retake the 1,350 level and a close above 1,365 would be bullish today. If the 1,340 level fails then the index is destined to test 1,325-1,300.
The Nasdaq jumped 25 points, or 0.9% to finish at 2,935. Tech made a strong showing despite Apple losing its steam and reached a peak of 2,940. We were happy to see 2,925 cleared shortly after the open and the 2,900 level hold. A drop below this area spells trouble.
The Russell 2000 popped over 1% after advancing 9 points to close at 795. The index fell just short of reclaiming 800 but went out near its high.
Futures are showing a strong open as word spreads that Greece should get its debt bond deal done this afternoon. Dow futures are up 68 points to 12,909 while the S&P futures are higher by 10 points to 1,362. Nasdaq 100 futures are showing a gain of 17 pints to 2,625.
Subscribers, check the Members Area for the updates.
Tags: AAPL, Apple iPad release
Posted in Apple, Market Analysis, Market Commentary | Comments Off
Wednesday, March 7th, 2012
12:45pm (EST)
The European have just closed and finished in the green as optimism grows over a Greek debt deal. The uncertainty knocked the wind of the bulls’ sails on Tuesday as the major indexes fell 1.5%, on average. The bears were able to penetrate key levels of support but not by much. We often mention how the indexes tend to overshoot support and resistance and yesterday’s pullback still had the major indexes above their 50-day moving averages.
The big news here at home will be Apple’s (AAPL, $535.72, up $5.46) update at 1pm (EST) for the expected iPad3. There is talk that the company might keep the iPad2 around, at a discounted price, to compete with Amazon’s (AMZN, $184.77, up $3.68) toy tablet which hasn’t been much of a threat.
Apple already commands a 75+% market share of the tablet industry and its rivals are splitting the pie in 5% slices.
Of course, there is risk today if the hype doesn’t live up to expectations. The key cool features that Appleholics expect are 4G LTE, a better screen and a faster chip. If 4G is included, expect it to be in the iPhone5 which would be super bullish as the move to high quality on the go continues to explode. Apple could also introduce the iTV but we think that rumor is a little premature.
There are rumors of some type of new touch screen technology so the wow factor could be there to drive Apple past $550 today. If there is a disappointment, then shares could test $500.
We would love to trade the options and we have looked at the Weekly options on Apple but we are on the fence. This is not an official recommendation but let’s look at the picture on what could happen based on a 5% move in the stock.
The Apple March 555 calls (AAPL120309C00555000, $1.45, down $0.05) have traded over 3,000 contracts and have a “breakeven” point at $556.45, technically. The Apple March 515 puts (AAPL120309P00515000, $1.24, down $1.10) are down 50% but could get active on a pullback.
Both of these options together would be considered a strangle option trade and the total cost would be $2.70. This would be a $2,700 investment on 10 calls and puts and here is what would need to happen.
If shares of Apple are at $510 or lower by Friday’s close, the trade would be a double. If shares are at $560 or better, the trade would be a 100% winner. If shares stay in between these ranges then the premiums could get whacked and the options could expire worthless.
We will monitor this trade but we will be sitting on the sidelines with some popcorn watching the action. We think Apple has a few surprises up its sleeve so it should be interesting.
As we head to press, the Dow has reclaimed the 12,800 level and is up 75 points to 12,834 while the S&P 500 is higher by 9 points to 1,352. The Nasdaq is showing a gain of 28 points to 2,938. We have updated our current trades before the show so subscribers, check the Members Area for the updates.
Tags: AAPL, AAPL strangle option trade, Apple iPad3
Posted in Apple | Comments Off
Monday, March 5th, 2012
1:25pm (EST)
The market has gotten off to a slow start as futures were weak throughout the night. We spent a lot of time looking at the charts over the weekend and the 5-week trading range we have been in has been frustrating to a degree. While we continue to take profits when we can, it’s been harder to establish a clear trend as the indexes continue to churn sideways. We mentioned this morning and in last night’s Weekly Wrap that the Russell 2000 (800.10, down 2.32 points) was breaking down like a rented mule and needed to hold 800 but there are some other sectors showing weakness which has lead to today’s decline.
Economic news has come in better-than-expected but China lowered its GDP (Gross Domestic Product) figures which offset the good news here at home. The February ISM non-manufacturing index came in at 57.3, versus expectations for a print of 56, while Factory Orders showed a decrease of 1.0% in January, versus expectations for a 1.5% decline.
Meanwhile, China lowered its GDP target to 7.5% from 8% which has been a goal for them since 2005. This was one of the key reasons the overseas markets were weak when they opened. China said that it needs to shift to a more sustainable and efficient economic model which could cut its reliance on exports and capital spending in favor of increased consumption. The news wasn’t all that bad as many analysts expected them to lower their GDP to 7% or less.
The two big events this week is the expected announcement of Apple’s (AAPL, $535.76, down $9.42) iPad 3 and Friday’s unemployment numbers. The headlines that come from the news will surely sway the markets and it may or may not be enough to break us out of this trading range but we are betting it will.
Given the lack of positive catalysts today, the bulls have struggled to gain momentum as the bears have held any advance in check. The Dow is down 46 points to 12,931 while the S&P is lower by 8 points to 1,361. The Nasdaq is off 28 points to 2,948.
Some good news for our portfolio – Our magicJack VocalTec (CALL, $23.26, up $1.28) call options continue to shine. The trade is now up 179% and we are looking for shares to make a move north of $25 this week. If not, our hard Stop will protect profits. Subscribers, check the Members Area for the updates and we will see the rest of yawl in the morning.
Tags: AAPL, Apple put options, CALL, call options, iPad3, magicJack
Posted in Apple, Economic News, Market Analysis, Market Commentary | Comments Off
Friday, February 24th, 2012
9:00am (EST)
Well, the bulls finally showed up to the playground on Thursday as they ran past the bears after a close first half. We had a feeling coming into the week that Apple’s (AAPL, $516.39, up $3.35) shareholder meeting would put Wall Street in a good mood and they did for the most part.
There was no stock-split or dividend announcement, but today is Steve Jobs’ birthday, so it would be nice to see them honor him and the shareholders in some way on what would have been his 57th.
Apple admitted that the $100 billion it has in its coffers is more than enough to keep the company running at top notch and they were close to making a decision on a dividend.
As far as the market, the action was flat to start the session and the major averages quickly moved lower as it looked like another retest to short-term support. It was and the bulls once again bought the dip and were back in control by lunchtime.
The Dow added 46 points, or 0.4%, to finish at 12,985. The blue-chips kissed a high of 12,996 and it would be nice to see a close above 13K going into the weekend. The low came in at 12,882 as support has been strong at 12,800 all week.
The S&P gained a six-pack, or 0.4%, to close at 1,363 after reaching a peak of 1,364.24. The index traded down to 1,352 and 1,350 stuck like glue.
Meanwhile, the Nasdaq popped 24 points higher, or 0.8%, to settle at 2,957. Tech went out near its highs and will try to take out Tuesday’s 52-week high of 2,965 before the closing bell. As of now, the index is higher by 5 points for the week and we would love to see at least a hold today at current levels.
We are still respecting the downside by taking smaller positions than normal but we mentioned in our Weekly Wrap there might not be a serious pullback until mid-March. We did say the market would sputter in February and it has to some degree but the dip is being bought more aggressively than we thought.
Futures are showing a solid open and we have added some new trades today on our Watch List. We don’t normally like to open new positions on a Friday but there is a NEW TRADE we are also trying to get into at the open. Subscribers, check the Members Area for the details.
Tags: AAPL, AAPL dividend, Apple dividend, Apple stock split
Posted in Apple, Hot Stocks, Market Analysis | Comments Off
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MomentumOptionsTrading.com Weekly Wrap for 3/18/12
Sunday, March 18th, 2012
11:30pm (EST)
1. Market Summary
2. Apple Hits $600 as New iPad Makes Debut
3. Hershey (HSY) –Everybody Loves Chocolate
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a great start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 35-11 over the first 3 months of 2012. Our list of winners include 131% and 114% on 2 MGM trades, 200% on SGMS, 107% on AFL, 100% on STX, 82% on TSM and 125% on MSFT just to name a few. We currently have 3 triple-digit winning call option trades, one a 300% winner and another is up 400%, that are still open in our portfolio. In other words, these solid gains could have turned a $10,000 trading account into $32,000 for a 220% return using our recommendations so far this year!
Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 17-0 for 2012. We were 16-0 in 2011. Even better, we could add another 4-5 winners in April! Some of our recent winners include 27% on CLNE, 17% on VVUS, 19% on MGM, 18% on DNDN, 20% on BAC, 55% on SZYM, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
So what are you waiting for? Sign-up now and receive access instantly to our stock options trading recommendations!
Tags: stock options trading advisors, stock options trading recommendations
Posted in Apple, Covered Calls, Market Commentary | Comments Off