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.