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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
Friday, November 19th, 2010
12:45pm (EST)
The market is trading slightly lower following yesterday’s strong rally which brought the market back near its resistance levels. The bulls are having trouble with overhead resistance as China raised its reserve requirement ratio for banks but they appear to be fighting.
Federal Reserve Chairman Ben Bernanke also chimed in this morning and we aren’t sure if his remarks will help or hurt the market as he criticized China’s currency policy, saying that Yuan is undervalued and the currency is hurting the global economy.
The bears are looking for their third weekly win in-a-row but the bulls are close to picking up the victory this week if they can manage one big push.
The Dow is currently down 11 points to 11,170 and will need to clear 11,192 to give the bulls a “W”. More importantly we would love to see a close above 11,200 which would set us up nicely for a big move higher next week. If we close below this level the bears will target Dow 11,000 and then 10,800.
The S&P is off by 2 points and is at 1,196 and will need to break 1,199.21 to finish in the green for the week so a close above 1,200 would be very bullish. There could be a test back down to 1,175 if not.
The Nasdaq is lower by 3 points to 2,511 and the bulls will try to hold the 2,500 level into the close. To finish positive for the week, the index will need to close above 2,518.
In any event, the slight correction we had prior to this week’s “flat” action was healthy and we believe the market needed it after its strong surge. Next week has the potential to be a big week for the market and we could see some huge price swings like we saw last year at this time.
The charts have been spot on and we have zigzagged lower after a breakout past resistance. The good news if you are bullish is that we appear to be headed higher although the market still faces some headwinds.
One stock trying to extend yesterday’s big 10% move is Aruba Networks (ARUN, $23.08, up $0.10) which reported earnings. We have followed the company for years and Aruba seems to be turning the corner after posting a 45% increase in revenue to $83 million for the quarter. They beat estimates by a penny and added 800 new customers. Impressive.
Imax (IMAX, $24.40, up $0.15) is looking to set another 52-week high as shares try to break $24.82 which was hit yesterday. On the last day of trading in October when shares were at $21-ish, we told you to expect new highs on the rollout of Harry Potter.
We also talked about our trading manual, How to Trade Options on Momentum Stocks, as it was the last day to get a free month service to our Members Area and all of our trade updates (a $129 value) if you purchased the course in October.
The options course is full of tips and information on how we try to find explosive situations that are about to happen in a stock and turn them into option trades. Due to the demand and your requests, we have decided to run that special again until the end of the year. Our first run of copies sold out quickly and we have just got in our second printing.
The manual took 3 years to write and provides real examples, in real time, on successful options trades that worked and why. We also include another manual, Momentum Stocks Watch List, which breaks down dozens of sectors on over 600 stocks and explains what moves these industries.
We are also doing videos that cover different sections of the manual to further explain how to find your own trades. If you are a beginning option trader or a seasoned vet, we honestly believe you will learn valuable information in our option manual that other ”option courses” fail to offer. Many of these programs often want you to spend more money on software upgrades, more course materials, and pay for mentoring but it’s a bunch of hot air.
We show you how to use news, charts, and how to “think outside the box” when it comes to finding successful option trades. All at a fraction of the cost. We truly believe we have the best deal going and this has been our mission since our editor-in-chief started this website. He wanted to show ordinary investors how to find and use option trades to enhance their portfolios.
Yes, options are risky, but they are also CHEAP and they cost a fraction of what the stock is currently trading at in the open market. If you wanted to buy 1,000 shares of a $50 stock it would cost you $50,000. However, to CONTROL 1,000 shares of a stock at $50 it might only cost you $500 or less!
We try to use cheap out-of-the-money options as a way to play a 5% move in a stock that yields 100% or more in an option trade. It’s that simple. Again, if a stock moves 5%, you will double your money if you are in the right option and we show you how.
In fact, here is a recent comment from a subscriber who purchased the option course:
“Rick, just wanted you to know that the manual has been helping a lot. I don’t seem so lost or in the dark as far as to what you are doing or why you are doing them. I feel like I can actually make a trade and feel confident of the outcome.
Quick success story: I placed an alert on (Research In Motion) RIMM when it hit 51.50 (this week). I immediately checked the charts and things looked poised to run to 55. I purchased (2) 52.50 calls for 1.05 each and within 1 day I made 110% on the trade.
Shares are still going up and had I owned more contracts I would have at least half positions still opened. If RIMM can break through the 200-day MA I might look to go long again. Thanks for your help. Let’s make more money!” (END)
UPDATE. This “student” sent us another email today and said he hit a 100% return on some Deckers Outdoor (DECK, $66.93, up $3.59) call options as shares have popped 6%.
We continue to tell you a 5% move in a stock can yield a 100% profit in the right options and our option trading course teaches you these things. Plus our track record is proof that returns of 200%, 500% and even 1,000% are possible with the right options.
We have a lot to talk about in our Members Area before the weekend hits so let’s get on it. Subscribers, check for the important updates and a NEW TRADE!!!
Tags: ARUN, bear market, binary options, bull market, call option, dndn, how to trade options, Imax, Momentum stocks, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Entertainment Stocks, Market Analysis, Market Commentary | Comments Off
Wednesday, March 3rd, 2010
9:05am (EST)
The Dow managed to squeak out a small gain of 2 points yesterday and closed at 10,405 after dipping into negative territory in the final hour. Despite Tuesday’s choppy action, the Dow managed to stay above 10,400 for the second consecutive day, something that hasn’t happened since mid-January.
Meanwhile, the S&P 500 also added a couple of points and finished at 1,118 while the Nasdaq closed at 2,280, up 7 points.
Walt Disney (DIS, $31.88, up $0.34) led the Dow higher and looks like it wants to challenge its 52-week high of $32.75. We have followed Disney for years and we usually have pretty good success playing call options on the stock. In September 2009, we grabbed our subscribers 72% on a call option trade and we recently closed out another trade for a small 12% win. In other words, there could be a trade here if Disney continues higher.
Another stock perched at a 52-week high is Imax (IMAX, $14.25, up $0.76). For those who have followed us for a couple of years know we frequently talk about the company as well and have been pounding the table on this stock since it was under $3.
The 52-week low for Imax is $3.90 and if you just do the math just from this level you get a return of 265%. So even if you don’t trade options, it just goes to show that if you aren’t a premium subscriber there are stories out there worth following which is why you should still read us every day.
Imax reports earnings NEXT Thursday, March 11, and we think they are going to knock the cover off the ball.
We have a lot to cover in the Members Area this morning and we have another new trade. As we head to press, Dow futures are up 2 points to 10,401 while the S&P 500 futures are higher by a point to 1,118. Nasdaq 100 futures are up 2 points to 1,854.
Tags: DIS, Imax, option picks, option signals, options alerts, stock options trading, Walt Disney
Posted in Company Commentary, Entertainment Stocks, Market Analysis, Market Commentary | Comments Off
Thursday, November 5th, 2009
1:00pm (EST)
We have had a busy day and the bulls are pushing Dow 10,000 as we head towards Friday’s all important Jobs Report. We touched base on what this means for the market and there are only three things that can happen. We either go up, down, or the tug-of-war continues between the bulls and bears. If there is little movement after we get the Jobs Report then longer-term it bodes well for the bulls.
In any event, we are preparing for the news by scaling back and closing positions before the report is out. We just don’t see the need to take on the extra risk when we already have profitable positions. Here are the profitable trades were are telling our subscribers to take profits in: Imax (IMAX, $10.82, up $0.26) call options for 31%, Barrick Gold (ABX, $40.20, down $0.08) call options for 38%, and an Apollo Group (APOL, $56.57, down $0.22) put option trade for 50%. Given the current market environment, I’d say we have performed pretty well.
Yes, we could push the envelope and leave these trades open for possible further gains but we are following our trading plan. We have a number of trades we are looking at as soon as the opening bell rings on Friday. It all depends on what the Jobs Report says and how traders are acting.
A couple of stocks we are watching…
We are licking our chops at another possible put option play for Abercrombie & Fitch (ANF, $34.77, up $0.97) after the stock is moving higher despite the fact that its same-store sales numbers were lousy. We would love to see a move back ABOVE $35 and a push towards resistance which is strong at $37. If so, we have the perfect put option in mind…
There is one trade we profile in the Members Area today but it is a ‘roll-over” trade from one of the aforementioned picks. A quick update we would also like to share for those of you who’s membership is expiring or for some of you who have been following us from the Blog. Here is where we are going:
“Also, please keep in my mind we have no plans to auto trade our picks. Many of you have been asking and this is one of the reasons why we don’t want to go this route. Sometimes the markets are just too volatile. Reason number two is that I don’t want to be famous, or on TV and we don’t want a million subscribers. We are limiting the number of subscribers we take to 1,000 and once the Trading Manual is done that is it. There will be a waiting list to get a subscription after that.
Our goal is to teach traders the option market and to stay under Wall Street’s radar. I don’t want our trades “crowded” and I don’t want to get to the point to where we can’t satisfy your needs. That is it. Thank all of you for the love/ hate mail yesterday…I deserve it.”
As we head to press…the Dow is up 171 to 9,973. It will be interesting to see how close to 10,000 we settle at as we head into tomorrow’s Jobs Report.
Tags: Apollo Group, Barrick Gold. options mentoring, Imax, market movers, momentum options, option trading, options track record
Posted in Company Commentary, Earnings, Entertainment Stocks, Hot Stocks, Market Analysis, Market Commentary, Option Trades, Stock Earnings, Strategies, Trading Psychology, Trading Tips | Comments Off
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Bulls Rebound, Trading Range Continues
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