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Thursday, February 2nd, 2012
10:45am (EST)
It looks as though we could have 4 trades called-away in a couple of weeks for our Weekly Wrap when the February options expire. Since these are covered calls, we know where shares will be “called-away” at and the gains would be 22%, 20%, 13% and 5%, respectively, for the 4 trades.
Of course, for the option trades we recommend in our Daily newsletter, we aim for 100+% returns but we continue to tell investors if you can average double-digit gains, monthly, you will double your money in less than a year. This is one of the reasons we started the newsletter to prove how incredible this strategy is.
We have even better news.
We have a unique situation where we believe we can make you a 117% return in a little over 5 months on a stock that could explode. We have done the math and here is the deal so you will know exactly what to expect.
Back in the day, options usually didn’t list on stocks under $5 and in reality it doesn’t make much sense to write options on stocks this cheap because it may be better to just own the stock. However, because some of the big-boy stocks like Citigroup and others fell to single-digits in 2008, options on stocks under $5 have found a home.
One of the trades we are recommending is on a stock that is currently trading at $1.88. The options we are looking at are going for 50 cents. This means if we sell the options against the stock, it will lower the cost basis to $1.38. The strike price we are selling is at 3 so this means if we are “called-away” in July at $3, the trade will make 117% based on current prices.
You can also buy this stock without selling options and if shares move from $2 to $6 you will make 200%. We have followed this stock for a few years and shares could reach $10 so there are a lot of ways to play it and a lot of bank to be made if shares zoom.
The company is a biotech which always carries risk but they could have a billion dollar drug on their hands. The all-time high for the stock is $43 which was hit in 2000 and the company has been around since 1997 so they are legitimate.
We have a special situation on a stock that has the potential to be a monster and the downside risk is only $1.38 if we sell call options or $1.88 straight-up. If the FDA approves their drug, shares will sky rocket.
Subscribers, check the Weekly Wrap Premium section for the New Trades.
Tags: covered call, covered call trading
Posted in Covered Calls | Comments Off
Wednesday, January 25th, 2012
12:40pm (EST)
We have action to take on 4 of our current trades for the Weekly Wrap portfolio. We are 23-0 on winning trades since inception so let’s keep the momentum going.
Subscribers, check the Weekly Wrap Premium section for the details and we will be back shortly with our afternoon update.
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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 one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007 and we are off to an incredible 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 13-1 winning trades to losers for January, including 6 triple-digit winners! Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 7-0 for January. Even better, we could go 8-0 in February. Sign-up now and receive access instantly to our stock options trading recommendations!
Tags: stock options trading, stock options trading advisors
Posted in Covered Calls | Comments Off
Tuesday, January 24th, 2012
1:00pm (EST)
Futures were weak throughout the night following a collapse in the Greece debt talks and got progressively worse as the European markets opened for trading. The weak open overseas translated into a lower start here at home as the bears try to stop the bulls recent momentum.
The European Union rejected Greece’s bondholders swap for a 4% interest rate on newer bonds in exchange for the current tab which puts the country at risk for a default, again. We have seen this circus before and Greece is only part of the problem as Portugal and Italy are next in-line.
Despite the worries, the market has bounced off its lows after holding short-term support which was prior resistance.
In earnings news, Coach (COH, $68.65, up $4.41) is trading higher after beating Wall Street’s estimates by 3 cents a share. It was the fifth-straight quarter Coach has beat estimates on average by 3 cents and we were looking for an earnings miss.
We talked about the company’s impressive numbers yesterday for 2011 and how they had come in ahead of the suit-and-ties for the last 4 quarters but we were convinced they would come up short, or lower guidance, and we were wrong.
The other earnings trade we wanted to take was EMC (EMC, $24.81, up $1.37) but we didn’t like yesterday’s action in the market and decided to stay on the sidelines. We have looked at the stock as a covered call trade and yesterday we peaked at the February 25 calls (EMC120218C00025000, $0.46, up $0.23), which are up 100%, but didn’t like the idea of having 2 all-or-nothing trades.
We are 13-1 for closed trades for 2012 and we have locked in half profits on a number of other trades so we haven’t taken any new trades this week. We see a number of new option trades we like, but if we learned anything in 2010 and the first half of 2011, it is choppy markets are hard to trade and its best sometimes to wait until we get a clearer picture.
We said Sunday night in our Weekly Wrap that Greece could weigh on the market all week and how the talking heads and pros were saying this was a done deal by Monday. No agreement has been reached, yet, and here it is Tuesday.
The Fed will also take center stage on Wednesday as it prepares to release the latest minutes along with the Rate Decision during Wall Street’s lunch break. There has been talk of more easing, or starting up the money printing press again, but with tax refunds starting to come out, we think the Fed stands pat. Tomorrow will also be a big day for Housing numbers.
The big news after the bell will be Apple (AAPL, $424.12, down $3.29) which will be reporting their quarterly results. The bulls have done of a great job of brushing-off Europe’s woes once again but this week is packed with earnings as 25% of the S&P companies will be confessing. This will be the most important one.
It’s still possible the bulls can push the July and April highs on an Apple beat-and-raise but we are in a win-win situation, either way, as we have continued to play the ride up while locking in profits along the way. At some point we are expecting a pullback but our Hard Stops will lock in our profits. We also have longer dated call options that should be okay, but, if the market does take a dip we will be ready to play the pullback.
As we head to press, the Dow is down 45 points to 12,663 after kissing a low of 12,613 while the S&P 500 is lower by 4 points to 1,312 after kissing 1,306. The Nasdaq is trying to rally the troops as it is showing a gain of 2 points to 2,786.
Our Aflac (AFL, $48.40, up $0.35) call option trade has just hit a 100% return so today hasn’t been too bad despite the Coach snafu. Dendreon (DNDN, $14.11, up $0.90) is on the move again and we are just watching the action. Subscribers, check the Members Area for the updates.
Tags: AAPL, Apple earnings, COH, dndn, EMC
Posted in Apple, Covered Calls, Earnings, Hot Stocks | Comments Off
Friday, January 20th, 2012
1:10pm (EST)
Everybody’s working for the weekend…
The market is mixed as we head into the second half of trading but it’s been a good day of triple-digit profit taking and we have more to come after the close when the January options officially expire.
For our Weekly Wrap subscribers, it means we could be looking at a bevy of double-digit gains as many of the stocks we told you to load up on in November and December should get called away as they are trading above our option strike price.
We have 10 winning trades that could get “called-away” today on the stocks we cover in our Weekly Wrap. The gains range from 18% on Dendreon (DNDN, $13.49, down $0.27), 27% on Clean Energy Fuels (CLNE, $13.96, up $0.13), 8% on Ford (F, $12.55, down $0.06), 19% on MGM Resorts (MGM, $12.69, down $0.12) and 17% on Vivus (VVUS, $12.13, down $0.23) just to name a few.
We have been money in picking consistent winners which has allowed us to go 16-0 in 2011 and possibly 10-0 to start 2012.
As far as yesterday’s Google (GOOG, $587.39, down $52.18) strangle option trade, here is what we said yesterday:
“A 10% move in Google would equate to a 63-point move in the stock and we could see that on an earnings miss to the downside. However, the upside may not be quite as huge if it is not a blowout quarter and could only be 5% or less which is still $30 but is it enough to create a possible strangle option trade?
The Google January 700 calls (GOOG120121C00700000, $1.10, down $0.20) and the January 575 puts (GOOG120121P00575000, $0.70, down $0.90) would cost $2 together and are a possibility but the stock would need to be at $702 or $573 for us to break even. At $704, or $571, the trade would double but again, the options expire tomorrow.
This is NOT an official option trade recommendation but we wanted to show you how strangle option trades work since we have a ton of new subscribers. The risk/ reward on this trade doesn’t look great and it may be better off to SELL these options but that is another strategy altogether and one we certainly don’t recommend on a $600+ stock.” (END)
Shares have traded to a low of $584 so far today and the January 575 puts (GOOG120121P00575000, $0.10, down $0.60) have opened at 79 cents and that was it as they will probably expire worthless. The Google January 700 calls (GOOG120121C00700000, $0.05, down $1.05) will expire worthless.
If we were playing “in-between” or “acey-deucey” we would have taken $2 out of the Google pot if we had sold these options, but again, it was way too much cash to put at risk if shares would have traded above $700 or below $575.
It’s also another reason why we rarely trade options on stocks over $100.
We have a lot to cover in our Members Area and we couldn’t have asked for a better week or month so far to start 2012. We have turned a $10,000 trading account into over $20,000 in 3 weeks and we have said 2012 is going to be a BIG year for us. We are 15-1 on closed trades for the year and you can request our track record by emailing us to see all of the trade details.
As we head to press, the Dow is up double-nickels (55 points) to 12,679 while the S&P is lower by 3 points to 1,311. The Nasdaq is down 7 points to 2,781.
We will be back Sunday night with the Weekly Wrap and more good news. We will also be providing an in-depth look at what this week’s rally has meant and where the market could be going. Until then, have a great weekend everyone!
Tags: CLNE, Dendreon options, dndn, F, GOOG, HGM
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off
Thursday, January 12th, 2012
9:00am (EST)
We were a little surprised to see Tech show strength yesterday given the Microsoft (MSFT, $27.72, down $0.12) news that PC sales had dipped 1% but the bulls were able to brush aside the bear attacks as the major indexes finished higher for the most part.
Normally, a warning like this would have knocked the socks of the Nasdaq and Microsoft but it’s no shock the evolution of smartphones has hurt the PC industry although we still think of the home computer as “home base”. Microsoft is adapting, and well we might add, though Wall Street might disagree as one suit-and-tie cut the company’s earnings estimates yesterday.
The Dow fell 13 points, or 0.1%, to settle at 12,449. The index did manage to sneak into positive territory just before the closing bell to hit 12,462 and the low came in at 12,399 which means support held.
The S&P added a half-point to close at 1,292.48. The high was at 1,293 as the bulls continue to keep their eyes on a move above 1,300. The low came in at 1,285 which was easily above the 1,275 and 1,250 support levels we have been covering.
The Nasdaq gained 8 points, or 0.3%, to finish at 2,711. Tech traded below the 2,700 level at the open and kissed a low of 2,690 before finally turning the corner shortly after lunch.
We mentioned earlier this week the market would have to deal with some debt offerings from Italy and Spain which could create some headwinds for the bulls. The good news is the auctions were this morning and they went well.
It looks like another busy day as we will be releasing 6 NEW TRADES for our Weekly Wrap this morning. Look for them shortly after the open. With 10 possible current trades ready to be called away next week, we want to reload the portfolio. Folks, the average return on the trades will be double-digits and if you can average these types of returns on a monthly basis you will easily double your money in a year.
To twist your arm even more to make you say “money”, we are also offering a 1-year membership to our Weekly Wrap for just $299. This publication is normally priced at $599 so it represents a savings of 50%. You can use the coupon code 5F181DD20D thru the end of this month to join and please make sure you choose the 1-yr subscription model for the WEEKLY WRAP. This newsletter ended 2011 with a 16-0 track record and aims for monthly double-digit profits. Remember, we currently have 10 trades that could get called away in the next week for mid to high-teen double-digit returns and 6 more coming your way today. For those of you who subscribe to our Daily, here is your chance to get on the Weekly Wrap bandwagon as well.
We may also add a NEW TRADE or 2 to our Daily newsletter which has stayed hot in 2012. The trades are listed on our Watch List and are thisclose to becoming official recommendations.
Futures are up as we head to press and look like this: Dow (+19), S&P (+3), Nasdaq (+6).
Subscribers, check the Members Area for the updates and stay on your toes for NEW TRADES and possible PROFIT ALERTS throughout the morning.
Tags: covered call options, MSFT, Weekly Stock Market Wrap
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off
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Bulls Looking For Third-Straight Weekly Win
Friday, January 20th, 2012
1:10pm (EST)
Everybody’s working for the weekend…
The market is mixed as we head into the second half of trading but it’s been a good day of triple-digit profit taking and we have more to come after the close when the January options officially expire.
For our Weekly Wrap subscribers, it means we could be looking at a bevy of double-digit gains as many of the stocks we told you to load up on in November and December should get called away as they are trading above our option strike price.
We have 10 winning trades that could get “called-away” today on the stocks we cover in our Weekly Wrap. The gains range from 18% on Dendreon (DNDN, $13.49, down $0.27), 27% on Clean Energy Fuels (CLNE, $13.96, up $0.13), 8% on Ford (F, $12.55, down $0.06), 19% on MGM Resorts (MGM, $12.69, down $0.12) and 17% on Vivus (VVUS, $12.13, down $0.23) just to name a few.
We have been money in picking consistent winners which has allowed us to go 16-0 in 2011 and possibly 10-0 to start 2012.
As far as yesterday’s Google (GOOG, $587.39, down $52.18) strangle option trade, here is what we said yesterday:
“A 10% move in Google would equate to a 63-point move in the stock and we could see that on an earnings miss to the downside. However, the upside may not be quite as huge if it is not a blowout quarter and could only be 5% or less which is still $30 but is it enough to create a possible strangle option trade?
The Google January 700 calls (GOOG120121C00700000, $1.10, down $0.20) and the January 575 puts (GOOG120121P00575000, $0.70, down $0.90) would cost $2 together and are a possibility but the stock would need to be at $702 or $573 for us to break even. At $704, or $571, the trade would double but again, the options expire tomorrow.
This is NOT an official option trade recommendation but we wanted to show you how strangle option trades work since we have a ton of new subscribers. The risk/ reward on this trade doesn’t look great and it may be better off to SELL these options but that is another strategy altogether and one we certainly don’t recommend on a $600+ stock.” (END)
Shares have traded to a low of $584 so far today and the January 575 puts (GOOG120121P00575000, $0.10, down $0.60) have opened at 79 cents and that was it as they will probably expire worthless. The Google January 700 calls (GOOG120121C00700000, $0.05, down $1.05) will expire worthless.
If we were playing “in-between” or “acey-deucey” we would have taken $2 out of the Google pot if we had sold these options, but again, it was way too much cash to put at risk if shares would have traded above $700 or below $575.
It’s also another reason why we rarely trade options on stocks over $100.
We have a lot to cover in our Members Area and we couldn’t have asked for a better week or month so far to start 2012. We have turned a $10,000 trading account into over $20,000 in 3 weeks and we have said 2012 is going to be a BIG year for us. We are 15-1 on closed trades for the year and you can request our track record by emailing us to see all of the trade details.
As we head to press, the Dow is up double-nickels (55 points) to 12,679 while the S&P is lower by 3 points to 1,311. The Nasdaq is down 7 points to 2,781.
We will be back Sunday night with the Weekly Wrap and more good news. We will also be providing an in-depth look at what this week’s rally has meant and where the market could be going. Until then, have a great weekend everyone!
Tags: CLNE, Dendreon options, dndn, F, GOOG, HGM
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off