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Friday, January 6th, 2012
9:00am (EST)
The market started yesterday’s session with a 1% drop at the open but the bears are having a hard time keeping the bulls pinned down. Yesterday’s strength came from an unlikely source but one that packs a lot of punch. Tech has shown some mojo this week as some of the oldies-but-goodies have led the charge higher.
We said in our Weekly Wrap on Monday that some of the larger caps would have to pick up the slack – and the Financial stocks would need to rebound with 4Q earnings starting next week in order for the market to make its next push higher. So far, so, so good.
Microsoft (MSFT, $27.68, up $0.28) has quietly made a move from under $26 before Christmas to nearly $28 which may not seem like much but oh is it ever. The 7% move in the stock has allowed our subscribers to enjoy a 108% gain in the call options we recommended. The charts are pointing to a test to the mid-$30’s sometime in 2012 so we may have to roll this trade into some later dated options as well.
Think about that for a second. In order to make a 100% return on shares of Microsoft, you would need the stock to go from $26 to $52. Considering the stock has been in a trading range of $22-$30 for a few years, this isn’t happening, especially in 6 weeks which is how long it took to play the options.
Also, to buy a 100 shares of Microsoft, it would have cost you $2,600. To buy 10 call option contracts (which controls 1,000 shares) it would have cost you $950, or $95 per option contract. The call options we recommended are now going for $2.70, or $270 per contract. In other words, $950 to $2,700 in 40 days. Not bad.
Cisco (CSCO, $18.92, down $0.07) is within spitting distance of breaking the $20’s after kissing $19 exactly over the past 2 trading sessions. Shares could be of legal drinking age by February or it will be the fastest “double-top” in history if shares retreat. We were recently “called-away” from our Cisco shares for our Weekly Wrap portfolio which was 1-of-the-16 winning trades from 2011 for our Covered Call portfolio.
Bank of America (BAC, $6.31, up $0.50), which is a CURRENT trade or ours as well, surged over 8% yesterday after opening at $5.75. There was a TON of action in the option pits as the BAC January 6 calls (BAC120121C00006000, $0.47, up $0.29) surged 161% after opening at 16 cents.
Even more impressive were the juicy gains the WEEKLY options made. These options expire TODAY but the BAC January 6 WEEKLY calls (BAC12010600006000, $0.33, up $0.30) soared a sizzling 1,000% after opening for two cents. Yes, 2 pennies!
Even though this week hasn’t felt like a breakout, it has been. Support has held like a rock all week and the market has made higher highs and higher lows. The bulls still face headwinds and we have already been exiting trades by closing half positions but we got the top rolled back and we are looking for more action.
The Dow started Thursday’s session with a triple-digit loss but managed to close the gap to end with a loss of only 3 points. The index touched a low of 12,362 and we have mentioned prior resistance at 12,350 should hold as short-term support. Check. There is further support at 12,200 and then 12,000 but we are still expecting a push towards 12,600 and possibly 12,800-13,000 – if 4Q earnings come in strong next week.
The S&P 500 added 4 points to finish at 1,281 after testing a low of 1,265. The 1,250 level has stuck all week and there is backup at 1,225-1,200. However, now that 1,275 is cleared, look for the bulls to push 1,300-1,325.
The Nasdaq jumped 22 points to settle at 2,669. Tech traded to 2,673 and we said if the 2,650 level was cleared on the close we could see a little run to 2,675-2,700 which is where the next big battle takes place. With Cisco and Microsoft pushing 52-week highs, and Apple (AAPL, $418.03, up $4.59) which is just $8-and-change away from it 52-week high, dare we say Nasdaq 3,000?
Futures are up but stay guarded. While we do think a test do the next layer of resistance is coming and 4Q earnings could surprise, we worry about February and what will be the next catalyst to take the market higher (or lower?). Europe, war and oil, White House bickering, and unemployment can offer nasty headlines and are the bears’ wild cards.
As we head to press, futures look like this: Dow (+44), S&P 500 (+5); Nasdaq 100 (+7).
Special Alert: We could be very busy this morning as we close out a few profitable trades and add up to 2 NEW TRADES. We have some beautiful charts to show you today so make sure you check them out inside the Members Area. We will send out a Trade Alert if we take action but we normally like to see how some of the stocks we are following open.
Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: BAC calls options, binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, MSFT, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Covered Calls, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Thursday, December 29th, 2011
12:35pm (EST)
The bulls have gotten off to a good start today following yesterday’s 1% drubbing on semi-inspiring U.S. economic news. Jobless Claims came in under 400,000 at 386,000 but up from last week’s print of 366,000. Wall Street was expecting 379,000. Despite the slight miss, this is the fourth-straight week claims have held under 400K which is considered the break-even level for jobs creation.
Elsewhere, Pending Home Sales were up over 7% as the Index came in at 100.1 for November, its highest level in nearly 20 months. This number can fluctuate because not all sales lead to closings but nonetheless it was a good sign that home buyers are starting to poke around for good deals.
The Dow is up 103 points to 12,254 while the S&P 500 is higher by 10 points to 1,259. The Nasdaq is showing a 19 point pop and is at 2,609.
We would love to see these levels hold and then Dow 12,350; S&P 1,275; and Nasdaq 2,650 on Friday but we also have downside targets we are watching.
There seems to be a split on where the market is headed for January with half the “pros” saying we are in for a bear market while the other half is betting on a bullish breakout. We are more on the bullish side but our portfolio is getting light as we wind down the year and WAIT for the market’s next move. We said this morning to stay light because the trading range could continue if the bulls hold support.
If there isn’t a breakout over the next month or two, and support fails, we aren’t nervous about a market pullback or selloff. We can make just as much profit from buying put options, but the possible trading range we continue to ride doesn’t have to be played unless you are selling options which is a new strategy we may introduce in 2012.
We have been talking about this 2-month range for weeks as we said it could be ongoing. The charts we went over in our video on Monday and in our Weekly Wrap showed the current range we are in and we outlined these “boxes” to give you a clearer picture.
The charts are still bullish and maybe the bulls will need another Bernanke rescue to break through resistance. However, we are keeping our eye to the downside on specific breaking points but until they are triggered, we will sit tight.
Before we go we wanted to remind you of the special we have. Remember, there is also only 2 days left to hit us up on our special offer to get our trading manual and ongoing videos at no cost (an $899 value!). The options course and videos are ongoing and all you have to do is sign-up for a 1-year membership to our Daily newsletter.
We are also including a 1-year Weekly Wrap subscription with your purchase. (Current subscribers, if you recently renewed a 1-year Daily subscription and would like to get this added, please contact us). This newsletter went 16-0 for 2011 and we have a number of trades which could get “called-away” in January. This newsletter recommends solid stocks with high options premiums which act like dividends to produce MONTHLY double-digit gains.
A 1-year membership to the Daily is priced at $924 and the Weekly Wrap 1-year is priced at $599. The trading course, How to Trade Options on Momentum Stocks, is priced at $899. If you go to our subscription page you will see “Annual subscription to Daily and Weekly” for $995, a savings of over 55%! Click on that and we will do the rest.
There aren’t too any option newsletters who can say they have had a good 2011. We can and we have the results to prove it. Our winning percentage will be near 70% for ALL of our trades for 2011 and most fund managers would be happy to be at 52% which means they made money. An exceptional hedge fund manager might average 60% wins on their trades. Obviously, we deserve the right to rub it in but it has been a hard market to trade and a lot of “smart” people were made to look “stupid” and that is not our style.
We try not to gloat because the market can always humble you and the first 7 months were just as hard on us as we were flat coming into August. However, we had an incredible run where we hit on 44 out of 52 trades winning trades which allowed us to coast into year end.
To take advantage, please go to the subscription page. Your discount and trading manual will be applied and shipped with your order and we look forward to another profitable year in 2012!
Subscribers, check the Members Area for the updates and we will be back in the morning with our next outlook.
Tags: options trading course
Posted in Commodities, Company Commentary, Covered Calls, Earnings, Entertainment Stocks, Hot Stocks, IPOs | Comments Off
Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
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If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off
Sunday, November 20th, 2011
10:00pm (EST)
1. Market Summary
2. Darling International (DAR) Could Be Bottoming
3. Earnings Preview – Perfect World (PWRD)
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 and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Tags: stock options trading advisors
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off
Thursday, October 27th, 2011
12:40pm (EST)
Futures were pointing towards a jailbreak by the bulls this morning and the market is soaring after Europe came through with a “plan”. We knew things could get ugly during yesterday’s EU summit meeting but little did we know punches would be thrown. Of course, tensions build when you put 17 people in a room with the weight of the world, literally, on their shoulders.
We mentioned the talking heads and slick talking Wall Street analysts were calling for a pullback into yesterday’s close but they failed to read the charts and underestimated the wheeling-and-dealing the Europeans are capable of. When push came to shove, the EU leaders worked late into the night and finally came up with a game plan.
To dummy things down, the EU leaders proposed 3 actions and they were: a reduction in Greece’s current debt; a recapitalization of the region’s banks so they can absorb the hit, or losses, from Greece’s bonds; and the reinforcement of the bailout fund which was raised to $1.4 trillion.
Add it all up and you get a huge rally past resistance and a big smile on our faces since we are in a ton of call options.
The Dow is surging 310 points to 12,178 while the S&P 500 is zooming 36 points to 1,277. The Nasdaq has easily cleared 2,700 and is soaring 73 points, to 2,724. The price targets we listed on Sunday night/ Monday morning are in play as our crystal ball continues to nail this market’s pivot points. The S&P Volatility index (VIX, ^VIX, 25.17, down 4.69) is down 15% and we said to look for a drop to 22 once the bulls took out the 30 level.
We have been busy today and we said we would be ringing the register a lot this morning. October has been an incredible month for us but we have been hot since early September and we expect our roll to continue for the rest of the year.
With the market right near our upper-end targets and with the weekend almost upon us, we can’t wait to do the homework to see where this indexes are really headed!
Subscribers, check the Members Area for the updates and stay on the lookout for either new trades or possible profit alerts as this market continues to treat us like gold.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Market Commentary, VIX | Comments Off
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Knock, Knock, Knocking on Resistance
Friday, January 6th, 2012
9:00am (EST)
The market started yesterday’s session with a 1% drop at the open but the bears are having a hard time keeping the bulls pinned down. Yesterday’s strength came from an unlikely source but one that packs a lot of punch. Tech has shown some mojo this week as some of the oldies-but-goodies have led the charge higher.
We said in our Weekly Wrap on Monday that some of the larger caps would have to pick up the slack – and the Financial stocks would need to rebound with 4Q earnings starting next week in order for the market to make its next push higher. So far, so, so good.
Microsoft (MSFT, $27.68, up $0.28) has quietly made a move from under $26 before Christmas to nearly $28 which may not seem like much but oh is it ever. The 7% move in the stock has allowed our subscribers to enjoy a 108% gain in the call options we recommended. The charts are pointing to a test to the mid-$30’s sometime in 2012 so we may have to roll this trade into some later dated options as well.
Think about that for a second. In order to make a 100% return on shares of Microsoft, you would need the stock to go from $26 to $52. Considering the stock has been in a trading range of $22-$30 for a few years, this isn’t happening, especially in 6 weeks which is how long it took to play the options.
Also, to buy a 100 shares of Microsoft, it would have cost you $2,600. To buy 10 call option contracts (which controls 1,000 shares) it would have cost you $950, or $95 per option contract. The call options we recommended are now going for $2.70, or $270 per contract. In other words, $950 to $2,700 in 40 days. Not bad.
Cisco (CSCO, $18.92, down $0.07) is within spitting distance of breaking the $20’s after kissing $19 exactly over the past 2 trading sessions. Shares could be of legal drinking age by February or it will be the fastest “double-top” in history if shares retreat. We were recently “called-away” from our Cisco shares for our Weekly Wrap portfolio which was 1-of-the-16 winning trades from 2011 for our Covered Call portfolio.
Bank of America (BAC, $6.31, up $0.50), which is a CURRENT trade or ours as well, surged over 8% yesterday after opening at $5.75. There was a TON of action in the option pits as the BAC January 6 calls (BAC120121C00006000, $0.47, up $0.29) surged 161% after opening at 16 cents.
Even more impressive were the juicy gains the WEEKLY options made. These options expire TODAY but the BAC January 6 WEEKLY calls (BAC12010600006000, $0.33, up $0.30) soared a sizzling 1,000% after opening for two cents. Yes, 2 pennies!
Even though this week hasn’t felt like a breakout, it has been. Support has held like a rock all week and the market has made higher highs and higher lows. The bulls still face headwinds and we have already been exiting trades by closing half positions but we got the top rolled back and we are looking for more action.
The Dow started Thursday’s session with a triple-digit loss but managed to close the gap to end with a loss of only 3 points. The index touched a low of 12,362 and we have mentioned prior resistance at 12,350 should hold as short-term support. Check. There is further support at 12,200 and then 12,000 but we are still expecting a push towards 12,600 and possibly 12,800-13,000 – if 4Q earnings come in strong next week.
The S&P 500 added 4 points to finish at 1,281 after testing a low of 1,265. The 1,250 level has stuck all week and there is backup at 1,225-1,200. However, now that 1,275 is cleared, look for the bulls to push 1,300-1,325.
The Nasdaq jumped 22 points to settle at 2,669. Tech traded to 2,673 and we said if the 2,650 level was cleared on the close we could see a little run to 2,675-2,700 which is where the next big battle takes place. With Cisco and Microsoft pushing 52-week highs, and Apple (AAPL, $418.03, up $4.59) which is just $8-and-change away from it 52-week high, dare we say Nasdaq 3,000?
Futures are up but stay guarded. While we do think a test do the next layer of resistance is coming and 4Q earnings could surprise, we worry about February and what will be the next catalyst to take the market higher (or lower?). Europe, war and oil, White House bickering, and unemployment can offer nasty headlines and are the bears’ wild cards.
As we head to press, futures look like this: Dow (+44), S&P 500 (+5); Nasdaq 100 (+7).
Special Alert: We could be very busy this morning as we close out a few profitable trades and add up to 2 NEW TRADES. We have some beautiful charts to show you today so make sure you check them out inside the Members Area. We will send out a Trade Alert if we take action but we normally like to see how some of the stocks we are following open.
Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: BAC calls options, binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, MSFT, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Covered Calls, Hot Stocks, Market Analysis, Market Commentary | Comments Off