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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!

Bulls Battle Back

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. 

Market Tanks on Nonfarm Payrolls

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.

Wall Street Bracing for Friday’s Jobs Report

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!

Green Mountain Coffee Roasters (GMCR) Tanks After-Hours

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.   

 

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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!

    Despite the recent volatility, we have given more "locks" to our subscribers than a Vegas bookie. If you started with a $10,000 trading account, our CLOSED option picks would have made you over 600% by now. In other words, YOUR $10,000 option trading account would be worth over $70,000 as we have become one of the most powerful option newsletters in the business. Our biggest trade of the year so far was hit in early May when shares of Green Mountain Coffee Roasters (GMCR) fell 50% after an earnings miss which made our subscribers 576% on the put options!

    We DON"T count "half" closed trades twice, or "third" closed trades three times like other option newsletters do. Some option services will fluff their Track Records up by using these smoke-and-mirror tricks. They will also "average down" a losing trade in hopes of it coming back then will record the "average" price of the trade when it was really 2 bad trades. Most option websites DON'T have track records and say they give 300% winners. The devil is in the details.

    We don't play these types of games which is why we have the most dedicated subscribers in the business because we have earned their trust. We have recommended 103 trades, 85 winners, 18 losers for 2012. Pretty simple and pretty powerful. We also have verified auto-trading partners who trade our recommendations for your account if you cannot watch the market. They will also tell you how good and how honest our service is.

    Here are some of our other profitable triple-digit recommendations: Capital One (COF) call options +423% in 8 days, American Express (AXP) call options +310% in under 7 days, magicJack (CALL) call options +80% in 3 days, Microsoft (MSFT) call options +124%, STX call options +100% in 2 weeks, +114% and +131% on 2 MGM Resorts (MGM) call options trades in 3 weeks, +158% on Zynga (ZNGA) call options and +107% in Aflac (AFL) call options in 6 days. We also had a +200% winner with Scientific Games (SGMS). Some of our double-digit gains include +58% on WPRT calls, +80% on TSM and +38% on INT call options.

    Our Weekly Wrap is 35-0 since the start of 2011 and is 17-0 for 2012. Some of our winners include +55% on Solazyme (SZYM), +27% on Clean Energy Fuels (CLNE), +38% on Vivus (VVUS), +17% on MGM, +18% on Dendreon (DNDN), and +20% on Darling (DAR). Despite what the suit-and-ties say, you can make incredible gains trading the RIGHT covered calls.

    Over the past 5 years we are averaging a 75% winning percentage for all our trades despite volatile, flat and choppy markets. Come see why some of Wall Street's pros are following us instead of the Journal!

    Here are some of our profitable 2011 recommendations: ORLY call options +191%, VMW call options +100%, JOYG call options +169%; GS put options +184%; FDX put options +164%; OXY put options +74%; +137% on RIMM put options, +1,167% on RMBS puts in 11 days, +296% on FCX calls; +157% on ZAGG calls; +110% on LNKD puts; +133% on RLD put options.

    You can also request our Track Records to see all years by entering your email address which will allow you access to the portfolios.

    If you are missing these juicy profits, come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2011 Track Records by sending us an email or filling out the box below. 665 Total Trades; 459 WINNERS or 7-out-of-10.


2008 - 2010
Track Record
94.05%
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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