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Tuesday, May 8th, 2012
1:05pm (EST)
The market is doing what it should have done yesterday but we didn’t mind waiting 24 hours as we have been able to close a plethora of winning put option trades today. We will keep it short but we wanted to show you the Fossil (FOSL, $79.66. down $46.11) put option trades we profiled in our Members Area along with the chart work.
Here were our thoughts Monday morning before the market opened (quotes are from Friday, May 4 close):
Fossil (FOSL, $129.19, down $5.81)
May 105 puts (FOSL120519P00105000, $0.90, up $0.60)
June 100 puts (FOSL120616P00100000, $1.10, up $0.50)
Thoughts: Fossil reports earnings on Tuesday so we may get into this trade today but want to see how shares open. The company has been on a roll of late but if they miss earnings or lower guidance look out below.

Here is how the trade looks today on our Watch List:
May 105 puts (FOSL120519P00105000, $25.20, up $24.00)
June 100 puts (FOSL120616P00100000, $22.00, up $20.40)
The May 105 puts are up a staggering 2,000% while the June 100 puts are up a whopping 1,275%!
Here is one of the several dozen emails we got this morning:
“Rick,
Great call on Fossil. I bought the May 120 puts for $3.70 yesterday morning just sold for $32.00 today.
Keep up the great work
Thank you,
Henri N.” (END)
Folks, we said back in late March when we started loading up on put option trades it would be a great time to be IN the market.
We have closed 5 winners this week and we are looking for more.
As we head to press, the Dow is down 170 points to 12,837 while the S&P 500 is lower by 19 points to 1,350. The Nasdaq is off 48 points to 2,910.
Subscribers, check the Members Area for the juicy updates!
Tags: FOSL put options, Fossil earnings miss Posted in Earnings, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Monday, May 7th, 2012
12:40pm (EST)
Futures were showing a nasty open when the overseas markets opened but were cut in half before the bell this morning. We warned on Friday there could be some nervousness over the weekend depending on the election outcomes in France and Greece. Although the market didn’t seem to like France’s new leadership, it is more worried about Greece and their willingness to fix their debt issues.
France socialist, Francios Hollande wants to revive growth and is against the austerity measures being promoted by Germany and the ECB (European Central Bank). Greece will hold yet another election, possibly in early June, as their two candidates failed to draw a majority vote over the weekend.
Despite the uncertainty and the possibility of Greece leaving the eurozone, the market has held up well as we enter the second half of trading mixed.
The Dow is down 8 points to 13,029 while the S&P 500 is up 3 points to 1,372. The Nasdaq is higher by 6 points to 2,962.
We have profits to take on a trade that is 178% and we are closing another trade for a slight profit after seeing it claw its way back from a 50% loss. This will clear some room in the portfolio as we have a NEW TRADE we want you to get into. This will also be our 18th and 19th-straight winning closed trades since late March and runs our 2012 Track Record to 81-18. Powerful stuff.
Subscribers, check the Members Area for the updates and make sure you use limit orders to get the best fills.
Tags: Francios Hollande win, put option trading Posted in Hot Stocks, Market Analysis, Market Commentary, Trade Update | Comments Off
Friday, May 4th, 2012
1:30pm (EST)
We stayed up late again last night to watch the overseas markets open this morning but futures were flat as a pancake which offered us few clues on how Wall Street would open this morning.
Of course, we have been telling our subscribers today’s Nonfarm Payrolls would be crummy and we actually predicted a print of 115,000 sitting around the office yesterday. Coming into the week, we were thinking anything under 125,000 would put a halt to the current rally that had pushed the major indexes right to resistance and we also talked about how the market has been in a 5-week trading range.
The Labor Department reported that 115,000 jobs were added in April which was the smallest gain in six months. If the bulls had gotten a number above 175,000 perhaps we would be seeing new market highs for the year. However, we knew there was a good chance the major indexes would fall back into the lower end of the trading range and we are hoping for much worse.
The talking heads will try to spin the Unemployment Rate which fell to 8.1% but the real number for unemployment in America is probably 15% or more. Either way, the news was bad and Wall Street seems shocked.
Not us. We have been warning our subscribers of a market pullback and possible correction as we have been loading up on put options since the beginning of April.
It’s been a sweet week despite the tight trading range we have been in for over a month as we have been able to close 3 more winning trades. Our current closed trade win streak is now at 16-straight which brings our 2012 Track Record to 76-18 year-to-date.
This is an incredible 80% win rate trading options and most “professional” traders would sell their soul to get 55% right trading stocks. Options are much harder to trade because they are time sensitive and by Wall Street standards and for options trading, a 55% win rate would actually be a great compliment. We try to do better than that as you can see.
The Dow is down 160 points to 13,046 while the S&P 500 is off 121 points to 1,370. The Nasdaq is lower by 59 points and is at 2,965.
There are two key elections are over the weekend concerning France and Greece. There are new radical parties that could win seats and this could lead to more uncertainty.
We hope so because our current put option trades are exploding today. We have to cut it short because we have listed Hard Stops on a few trades to protect profits.
We also have a NEW TRADE we are getting into as soon as we send this out.
If you are not a subscriber, email us and we will send you a copy. If you are a current subscriber, please check the Members Area for the fresh updates.
We will be back Sunday night with the Weekly Wrap and if you still don’t believe us that this is still one of the BEST times to be trading options, then please take a look at our 2012 Track record. Your jaw is going to drop after you see the profits we have been racking up.
Tags: best options newsletter, put option trading Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Thursday, May 3rd, 2012
1:20pm (EST)
The market has traded in a tight range all week but with today’s losses, the bears are now winning the week. Economic news has been mixed with jobless claims coming in better-than-expected.
Initial Claims fell 27,000 to 365,000 versus expectations for a print of 379,000. Continuing Claims fell 53,000 to 3.27 million compared to a forecast for 3.3 million claims. Non-farm Productivity decreased 0.5% in the first quarter which was better than calls for a 0.6% decline while Unit Labor Costs were up 2.0% versus expectations for an increase of 2.7%.
Futures got a pop on the news and were up before the open but started to slide as we headed to press this morning. After a flat open, the bears got some good news as the ISM Service Report came in at 53.5 which was below the suit-and-ties forecast for a reading of 55.3.
While we too are focused on Friday, we did take a victory lap around the office as we nailed our biggest trade of the year so far. Two weeks ago we recommended a put option trade on Green Mountain Coffee Roasters (GMCR, $26.27, down $23.25) that we felt had a really good chance of doubling. That was an understatement.
We have been following the company for years and when we first profiled the trade, we talked about the last two times the company had reported earnings. Here is the chart work we showed our subscribers on why we felt this would be a homerun trade as we had a good feeling the company would miss expectations this time around.

The chart work from this morning showed a drop to $25 was possible and today’s low has been $24.40. We recommended the May 35 puts (GMCR120519P00035000, $8.25, up $7.85) at 85 cents on April 17th and they have traded to a high of $10.60 today.
Shares did trade above $30 for about a minute so we closed the trade as we stuck to our trading plan. Although we left a little on the table, our near-term target has been hit and the options expire in two weeks.
We were able to turn $850 into $5,750 for a 576% gain but some of our subscribers have gotten out at higher prices. Awesome!
This was our second big earnings trade in less than a week that has made us some monster profits. Last week, we closed a Deckers Outdoor (DECK, $54.08, down $0.93) put option trade for a 180% win!
The good news is we could have two more trades that could be just as powerful. One more this week, one next week.
As we head to press, the Dow is down 40 points to 13,228 while the S&P is off 7 points to 1,395. The Nasdaq is lower by 26 points to 3,033.
Subscribers, check the Members Area for the updates and get ready for Friday!
Tags: DECK, Deckers Outdoor, Green Mountain Coffee Roasters (GMCR), momentum options, Momentum stocks Posted in Earnings, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Wednesday, May 2nd, 2012
9:00pm (EST)
We have GREAT news to report!
Our Green Mountain Coffee Roasters (GMCR, $49.52, down $0.22) put option trade is setting up to be our biggest trade of the year after the company reported earnings after the close.
We have been telling our subscribers to hold on tight as we said Green Mountain could report a lousy quarter. That they did.
The company missed Wall Street’s revenue estimates as earnings came in at 64 cents a share on sales of $885 million. The suit-and-ties were expecting 64 cents on $972 million in revenue. To make matters worse, they also lowered guidance for the current quarter and cut full-year guidance from $2.55-$2.65 to $2.40-$2.50.
Shares got hammered in after-hours trading tonight as they are down $20 to $29.40, or 40%.
If shares open up under $30 tomorrow morning, the puts we recommended will zoom and could return us 600%! If so, it will be our biggest win of the year so far.
Of course, we still have to wait for the opening bell but Thursday is already looking like a sweet day for us.
Sleep tight and we will be back in the morning with our next update.
Tags: GMCR earnings, Green Mountain Coffee Roasters Posted in Earnings, Hot Stocks | Comments Off
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Bears Pushing Next Levels of Support
Tuesday, May 8th, 2012
1:05pm (EST)
The market is doing what it should have done yesterday but we didn’t mind waiting 24 hours as we have been able to close a plethora of winning put option trades today. We will keep it short but we wanted to show you the Fossil (FOSL, $79.66. down $46.11) put option trades we profiled in our Members Area along with the chart work.
Here were our thoughts Monday morning before the market opened (quotes are from Friday, May 4 close):
Fossil (FOSL, $129.19, down $5.81)
May 105 puts (FOSL120519P00105000, $0.90, up $0.60)
June 100 puts (FOSL120616P00100000, $1.10, up $0.50)
Thoughts: Fossil reports earnings on Tuesday so we may get into this trade today but want to see how shares open. The company has been on a roll of late but if they miss earnings or lower guidance look out below.
Here is how the trade looks today on our Watch List:
May 105 puts (FOSL120519P00105000, $25.20, up $24.00)
June 100 puts (FOSL120616P00100000, $22.00, up $20.40)
The May 105 puts are up a staggering 2,000% while the June 100 puts are up a whopping 1,275%!
Here is one of the several dozen emails we got this morning:
“Rick,
Great call on Fossil. I bought the May 120 puts for $3.70 yesterday morning just sold for $32.00 today.
Keep up the great work
Thank you,
Henri N.” (END)
Folks, we said back in late March when we started loading up on put option trades it would be a great time to be IN the market.
We have closed 5 winners this week and we are looking for more.
As we head to press, the Dow is down 170 points to 12,837 while the S&P 500 is lower by 19 points to 1,350. The Nasdaq is off 48 points to 2,910.
Subscribers, check the Members Area for the juicy updates!
Tags: FOSL put options, Fossil earnings miss
Posted in Earnings, Hot Stocks, Market Analysis, Market Commentary | Comments Off