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Bulls Going For Hat Trick

Friday, December 11th, 2009

1:10pm (EST)

The bulls are looking to end the week on a high not as they have pushed the market higher for the third straight day.  The interesting thing about today is that the dollar is higher.  We have mentioned how the market has trended higher on a weaker dollar and that Wall Street has been worried about the “reversal trade”.  Basically, it means that they believe once the dollar started to rebound the market would head lower.  Well, we aren’t seeing that today and we have talked about how overblown this theory may be.

Of course, anything can happen but our end-of-year target for the Dow is 10,800.  The Dow is currently at 10,418, up 12 points, so that would mean we are looking for another 400 points.  That might be a reach for the bulls and next week could get interesting as there a number of key events we will be watching.

Gold is at a one-month low while oil is at a two-month low.  The yellow metal is down another $10 to $1,117/ oz. while “black gold” is down 54 cents to $70 a barrel.

Well, it didn’t take long for Wall Street to come out with a rating for AOL (AOL, $23.45, down $0.07).  Sanford Bernstein came out with an “Outperform” rating for yesterday’s IPO.  We followed the company when it traded in the 90′s…that would be the 1990′s, but can’t see the logic in slapping an “Outperform” rating on a company Time Warner (TWX, $30.52, up $0.07) was dying to get rid of.

Elsewhere, Research In Motion (RIMM, $63.80, down $2.00) has been all over the map and bets are being placed on if the stock is either going to test its 52-week high of $88 or its recent low of $55.  We have an option trade waiting in the wings Monday morning for this one…

It is a strangle option play and we think it has a chance of hitting a triple-digit return.  The company will announce earnings next Thursday AND the December options expire the following day.  Folks, the last time RIMM announced earnings the stock dropped from $82 to $68.  If you are not a current subscriber, signup this weekend as we think this one trade could bring some holiday cheer.

We have updated our current trades before we head out for the weekend.  We will be back Sunday night with the Weekly Wrap…

MomentumOptionsTrading.com Weekly Wrap for 12/06/09

Sunday, December 6th, 2009

10:40pm (EST)

The bulls were off and running on Friday as the Dow opened with a triple-digit gain after Wall Street learned the unemployment rate fell to 10% in November from 10.2% in October before the bell.  Most of the suit and ties figured the jobless rate would remain at 10.2% but a positive nonfarm payrolls report offered clues on Thursday.  

The market also got a better than expected factory orders report 30 minutes after the open but before lunch the bulls were packing it up and heading out for the weekend.  The markets then fluctuated the rest of the day on the strengthening U.S. dollar but still managed to finish the day and week higher.

The Dow was up 22 points to 10,388 and finished the week with a slight 0.8% increase.  Not bad for five days worth of work but the Nasdaq carried the load as it settled at 2,194, up 21 for the day, and 2.6% for the week.  The S&P 500 gained 6 to 1,105 and added 1.3%, respectively.

As you can imagine, some stocks rallied off the “good” unemployment report.  Manpower (MAN, $56.77, up $5.39) soared 10% and hit a high of $58, Monster Worldwide (MWW, $16.83, up $1.80) popped 12% and Robert Half International (RHI, $25.74, up $2.56) jumped 11%.

Big Lots (BIG, $28.08, up $4.54) had a BIG Friday as shares zoomed nearly 20% after the national closeout retailer announced 3Q profits that more than doubled Wall Street’s expectations.  The company earned $30 million, or $0.37 a share, compared with $12 million, or $0.15 a share, a year earlier.  Wow.  We were eyeballing this one in the Weekly Wrap last Sunday as an “earnings play” but felt nervous on recommending this one after our Aeropostale (ARO, $28.95, flat) debacle. 

We should have stuck with our game plan as the Big Lots December 25 calls (BIGLE, $3.10, up $2.50) gained over 400% on Friday.  Want one better?  The BIG December 27.50 calls (BIGLY, $1.10, up $1.00) were up an astounding 1,000%!  Now you know why we like earnings trades…

Elsewhere, Bank of America (BAC, $16.28, up $0.52) added 3% after it announced plans to repay $45 billion in TARP funds as it looks to find a new CEO.  Hard to believe this stock was at $3 in March.  We made some great option trades on the stock’s climb back to $20 which is where it ran out of gas back in October.  We aren’t ready to jump back into this one but we are watching the developments.

Gold has a wild week and hit a record high of $1226 per ounce, but ended the week at $1161/ oz. after plunging $52 on Friday.  We were preaching that the gold bugs were getting ahead of themselves last Wednesday when we heard “Gold $5,000″.

We don’t think the rally in gold is over but it only took two days after that retarded call for gold stocks to plunge.  Barrick Gold (ABX, $42.68, down $4.16) fell 9%, Newmont Mining (NEM, $52.05, down $2.43) dropped nearly 5% and Goldcorp (GG, $42.27, down $2.88) sank 6%.  Also, Freeport-McMoRan (FCX, $79.87, down $3.93), a play on copper and gold, slipped 4.7%.

Crude oil closed down $1 to $75 while natural gas gained 13 cents to $4.59. 

We will be back in the morning with the companies reporting earnings this week and the current trade updates.

Gold $5,000?

Wednesday, December 2nd, 2009

1:10pm (EST)

Folks, there is more action in our Members Area than a poker table on payday. 

Trading is choppy today as the Dow has darted in and out of positive territory.  We are currently at 10,437, down 34 points.  The S&P 500 is at 1,107, down 2 points, but is holding 1,100.

We thought we had heard it all with the gold price targets but today an analyst came out and said “Gold $5,000”.  We were just talking about this in the morning update and needless to say we are blown away. 

In any event, it has helped Barrick Gold (ABX, $47.29, up $1.22) set another 52-week high today.  Those December 45 calls (ABXLI, $3.10, up $0.90) we mentioned this morning opened at $2.58.

Another stock that is showing unbelievable strength is Amazon.com (AMZN, $141.05, up $2.55).  The stock closed last Friday at $131 but we were hesitant to pull the trigger on an option trade because of the massive sell-off we got on Friday but the stock always seems to rally in the weeks leading up to Christmas.

We have a lot to talk about in our Members Area and we wanted to update the trades we sent out to our subscribers at high noon.  If you are not yet a subscriber, we do hope you consider a subscription before we get filled.

MomentumOptionsTrading.com Morning Update for 12/02/09

Wednesday, December 2nd, 2009


It’s as if the Dubai news never happened…

The market picked up more momentum on Tuesday, as the Dow added 126 points to close at 10,471.  We mentioned in the Weekly Wrap there was evidence of “baby bulls” when we were talking about Friday’s market correction…

“The Dow was pressured right from the jump and at one point sank to a low of 10,230 before finishing the day with a 154 point decline.  We had factored in a drop to 10,100 but during the panic, the “baby” bulls stepped-in and lifted the market.  The Dow had started the week at 10,318 and we ended at 10,309.  The fact this level held while Wall Street was on vacation was impressive given the curve ball we got.” (END)

If you remember, the first reports of the Dubai World debacle had the debt at $60 million and whispers were calling for as much as $80 million in the hole.  The fact that they are working to restructure a smaller debt ($26 billion) has put the event in Wall Street’s rear-view mirror.

In fact, the bulls pushed the Dow above 10,500 for the first time since October of last year.  We have been calling for Dow 10-8 and given the trend it seems like that target could be reached. 

However, let Friday’s “warning” ALWAYS be a reminder that you should try to have both call AND put options in your portfolio.  If you will look at all of our trades from 2009, month-to-month, you will notice we like to follow this rule.  Sometimes we get caught too and we were stopped out of some nice trades but don’t let these “events” scare you.

We want momentum, either up or down.  In other words, we want action.  The bulls have been pretty much unstoppable since March and we will top out at some point.  Until then, all we can do is play the trend because after all, the trend is your friend…   

The dollar continues to get pounded like a porn star and at some point, it too, will rebound.  The current trend has been a weaker dollar and a higher stock market.  This pattern that has played out for months and we will have to wait and see at what point this doesn’t work anymore.

And Gold…we are already hearing cat calls of $1,600 and Gold $2,000.  That worries us but at the same time we continue to watch the gold stocks go bananas.  Barrick Gold (ABX, $46.07, up $3.38) jumped another 8% yesterday and set a 52-week high in the process. 

We spotted the potential breakout in Barrick Gold back in November and for those of you who have yet to see our Members Area; here was the trade on 11/3/09 that returned our subscribers 38% in two days.  (Quotes are from that day)

“Barrick Gold (ABX, $38.97, up $2.46)

Buy to OPEN November 40 calls (ABXKH, $1.20, up $0.73)

These calls have been exploding this morning.  They OPENED at 40 cents and we started watching them at 60 cents.  These calls could make a run to $2.00 and they are moving fast.  Do not pay over $1.30-$1.35 for them.  This will only be a one or two day trade and the stock appears to be headed to over $40.  Its 52-week high is $42.10.” (END)

If you will notice, our trade setup was for a one or two day window and we followed our trading plan to a “T” by closing the call options for $1.65.  We should have stayed on the action and maybe we should have rolled some of those profits into the December 45 calls (ABXLI, $2.20, up $1.49) which zoomed 200% yesterday but we didn’t see the continued breakout in the stock.

We still don’t know how high gold goes but one thing is clear, it is on a roll right now.

Futures Up, Market Set To Open Higher

Wednesday, November 4th, 2009

9:15am (EST)

Futures are up big this morning and it looks as though the bulls will start today’s session on offense.  Dow futures ar up 66 to 9,783, S&P 500 futures are up 8 to 1,050 while the Nasdaq 100 futures are also up 8 to 1,683.

Comcast (CMCSA, $14.51) is slightly higher this morning in pre-market trading after reporting earnings of $944 million, or $0.33 a share, compared with $771 million, or $0.26 a share, in the same quarter a year earlier.  Revenue was $8.8 billion, which was slightly shy of the $8.85 billion Wall Street was looking for. 

One other interesting development this morning…Walt Disney (DIS, $27.62) announced it has gained approval from China to build a Disneyland theme park in Shanghai.  We like the deal but we also like Imax’s (IMAX, $10.77) potential in China as well…

Gold is up again this morning…

We have lots more going on this morning but the real action is in the Members Area where our current subscribers closed another triple-digit winner yesterday.  We also profiled TWO trades on Tuesday that have gotten off to a good start…

« Older Entries Newer Entries »
2012 Closed Trades:
    Our updated 2012 Track Record is now at 85-18 for an 82% win rate. We have closed 24-straight winning option trades since late March!

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2008 - 2010
Track Record
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73% winners
Results are NOT compounded.

Request our detailed Track Records which are updated in our Members Area. As soon as you sign-up for a subsciption, you will have access to all open and closed trades for 2011 and past years.

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Trader Comments:

    REGINA L.
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year
    of membership rather than the one quarter. Thanks again, and LOVE YOU ALL.

    STEVE T.
    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help.

    SCOTT H.
    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide.

    PETER G.
    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485

    LAWRENCE O.
    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming.

    C.J.
    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again!

    SHAUN
    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace!

    MICHAEL K.
    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good
    profitable calls. Keep up the good work.

    PARAG P.
    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!

    JAY P.
    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN.

    MIKE
    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You.

    TRISH D.
    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks.

    MIN L.
    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock!

    JOE G.
    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you!

    GREG F.
    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming.

    NOEL
    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade.

    TODD F.
    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today.

    PAUL H.
    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you!

    NOEL
    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ”

    CHRISTIAN
    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.”

    JOHN
    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.”

    CHARLES M.
    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.”

    BRYAN C.
    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.”

    JOHN H.
    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.”

    JEFFREY
    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.”

    ED
    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.”

    GREG
    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.”

    KEN
    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.”

    GARETT
    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.”

    TERENCE
    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.”

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    3/18/11
    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    2/3/12
    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

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