|
|
|
|
|
 |
|
|
 |
Sunday, May 13th, 2012
11:30pm (EST)
1. Market Summary
2. Glu Mobile (GLUU) – Smartphone Player Worth a Look
3. Earnings
4. Weekly Wrap Portfolio Update
5. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section. Please give us an hour to get the charts up as we are running a little late tonight.)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. Our Weekly Wrap Covered Call Portfolio is 17-0 for 2012. We were 16-0 in 2011. Some of our sweet returns include +55% on SZYM, +27% on CLNE, +38% on VVUS, +19% on MGM, 18% on DNDN, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
Tags: Glu Mobile (GLUU)
Posted in Money Management | Comments Off
Thursday, March 29th, 2012
9:00am (EST)
The bulls are still up for the week but are feeling pressure by the bears following Wednesday’s pullback. Energy and Oil stocks led the way lower while some Tech and Financial stocks helped pull the indexes off their lows as the bears won their second straight session.
The Dow fell 72 points, or 0.5%, to close at 13,126. The blue-chips were down triple digits at one point, trading to a low of 13,069 (-128) before gaining some of the losses back. Dow component, American Express (AXP, $59.06, up $0.84) continues its surge towards $60 after setting a fresh 52-week high of $59.26. Bank of America (BAC), another blue-chip member, jumped 1.5%. Both are current recommendations for our Daily and Weekly Wrap. Caterpillar (CAT, $104.26, down $3.80) led the Dow losers, falling 3.5%. The losses whittled the bulls lead away as they are now only up a slim 45 points for the week.
The S&P 500 dropped 7 points, or 0.5%, to settle at 1,405. The index dipped below the 1,400 level as the bears pushed a low of 1,397 before losing their grips. The bulls are up 8 points for the week heading into today’s session.
The Nasdaq gave back 15 points, or 0.5%, to finish at 3,105. Tech touched a low of 3,086 but is still up 37 points, or 1.2% for the week. Apple (AAPL, $617.62, up $3.14) managed to set a new 52-week high of $621.45. The Apple March 610 calls (AAPL120330C00610000, $9.00, up $1.25) we mentioned yesterday morning reached a high of $13.40 and would have made a nice triple-digit return in less than 24 hours.
We were closed out of 2 more trades yesterday. Our Capital One (COF, $56.98, up $0.10) call option trade made 47% while our Solazyme (SZYM, $14.35, down $0.78) calls made 45%. Our other COF trade that was closed last week made 292% for our subscribers. This brings our 2012 Track Record to 57-11 so far for the year which is an 86% win rate.
We have added some new candidates to our Watch List today and we have moved up a number of Hard Stops to lock in gains on some of our other current trades showing a profit.
Futures are showing a lower open so things could quickly turn south for the bulls if key layers of support fail to hold today. Dow futures are down 39 points to 13,014 while the S&P futures are lower by 5 points to 1,394. Nasdaq futures off 9 ticks to 2,759.
Subscribers, pay close attention to our trade instructions and stay on your toes as we could be adding New Trades today.
Tags: BAC call options, BAC covered call trade, COF call options, SZYM. CAT
Posted in Company Commentary, Market Analysis, Money Management, Strategies, Trade Update | Comments Off
Friday, March 16th, 2012
12:55pm (EST)
Tomorrow is St. Patty’s Day and the bulls are trying to add some more green to this week’s gains. We have a lot to cover so let’s go over the numbers real quick.
The Dow is up 2 points to 13,255 while the S&P is higher by 2 points to 1,404. The Nasdaq is also up 2 points to 3,059. Maybe we should play 222 as a “pick 3” today as hot as we have been.
Here is a quick update for our portfolios.
This week has been one of our best week’s ever for the Daily publication. We are currently nursing open trades of 428%, 308%, and 118% to go along with the 35 winning trades we have closed for 2012.
We have been able to turn a $10,000 trading account into over $40,000 which is a return of over 300%. We seriously doubt any other option newsletter can match our results so far this year.
Not only have we had an incredible week for our Daily newsletter, our Weekly Wrap quietly continues to perform beyond our wildest expectations. We are on track to close up to 7 double-digit winners by the closing bell as the March options expire today. Take a look at the profits that could be coming our way if shares hold above the current strike price on the options we have sold.
magicJack VocalTec (CALL, $25.19, up $1.00) +19%
Bank of America (BAC, $9.58, up $0.34) +20%
Vivus (VVUS, $20.34, up $0.20) +38%
Alcoa (AA, $10.56, up $0.21) +17%
Symantec (SYMC, $18.11, down $0.09) +16%
Solazyme (SZYM, $15.66, down $0.19) +55%
MGM Resorts (MGM, $14.44, down $0.27) +13%
This will bring our 2012 Closed Trades for the Weekly Wrap to 19-0. If we include last year’s 16-0 mark, we could be 35-0 since started the newsletter a little over a year ago. Remember, our goal is to bring you solid double-digit profits every month with this publication no matter what the market is doing. If you can hit 5 winning trades for 20% or more you will double your money. The aforementioned covered call winners would have done just that for you.
We will give you our full track record this weekend as we are squaring-up a number of positions today. We did take a few hits on a few aggressive earnings trades but overall we should be 55-10 thru the first 3 months of 2012. Please note, and this is super important, we do not count half or quarter winning trades 2, 3, and 4 times. There are many option services that do this. If we did, our track record would be 85-10.
Other newsletters will also double down and tell you to buy more of a position if it is down and then they will average their cost down. However, if the trade is a loser, they will only count it once.
The bottom line is that most investment newsletters don’t have a track record because they give you so many trades hoping to hit on a few and they don’t trade their own account. They brag about the winners but won’t mention the losers.
We have auto-trading partners which verify our results and you can always request our current 2012 Track record by sending us an email if you are not a current subscriber.
Our reputation is built on trust and all of our trades are done in real time and are time dated. Our auto-trading partners get great fill prices on all of our trades for your account and your order is placed the instant our Trade Alerts go out. If you are a busy professional and can’t watch the market all day long, let our brokers do the work for you.
The reason we are telling you all of this is because we have been tired of listening to the Wall Street “pros” and talking heads that have gotten this market wrong and when it does crash they will tell you they were right. However, if and when there is a selloff, don’t get nervous. Remember, we can make just as much money to the downside as we can the upside. Just take a look at our 2008 portfolio, especially some of the returns on the Financial stock option trades.
We have a busy weekend ahead of us but the good news is our portfolio is light for both our Daily and Weekly Wrap which means we are ready to start our next batch of 50 trades. We will let the charts tell us which way the market is headed instead of trying to guess and wait for a pullback. The trend has been higher since the August lows and we have outlined clear support levels to watch for if there is a trend change. Until then, the trend is our friend.
We will be back Sunday night with the Weekly Wrap and we have updated our current trades one last time. Until then, have a great weekend everyone!
(Remember, we just ran a special for our Weekly Wrap so if you would like a 3-month trial at a 50% discount, please send us an email.)
Tags: AA, bac, CALL, Covered Calls, VVUS
Posted in Covered Calls, Hot Stocks, Money Management, Option Trades | Comments Off
Thursday, February 23rd, 2012
12:50pm (EST)
We wanted to talk a little more about covered calls because we really want you to broaden your horizons when it comes to investing. It’s no secret how much money buying the right call or put option can make you if you pick the right option on a stock but everyone should have an investment strategy where they have “safe” money and “speculative” money. The safe money earns you double-digit gains, the speculative money tries to hit the triple-digit gains.
Option traders love fast triple-digit “homerun” gains in a day or two or even a week but many of them overlook the “singles”. Vivus (VVUS, $20.00, up $10.00) has been a name that not many traders follow but we can bet they are trying to trade the options and stock today. It is all over the news on how the company won pre-approval of its obesity drug, Qnexa, but we have been doing our homework on this company for years and although we just missed a huge trade for our Daily, here is how we played the stock in our Weekly Wrap all last year and into 2012.
In May 2011, we recommended Vivus at $7.93 and sold 2 call options for a total of 80 cents which lowered our cost basis to $7.13. We were called away in August at $9 for an 18% gain.
In September, we recommended shares again at $8.45 and we sold October and November 9 call options for a total of 75 cents to lower the cost to $7.70. In mid-November, shares were called away at $9 as the stock was at $9.84. Our return was 17%.
The next week, we recommended shares again at $9.78 and sold the December 10 calls for $1.00 which lowered our cost basis to $8.78. In mid-December, Vivus was called away at $10 as the stock was at $10.09 on expiration day. The trade made 14%.
That same day, we recommended buying the stock again at $10.09 and selling the January 11 call option for 90 cents. This lowered the cost basis to $9.39. In mid-January, Vivus was at $12.04 so we were called-away once again. The return was 17%.
Knowing we might get called away in January, we also suggested on January 12, 2012 with the stock at $12.60 to reload the position and to sell the March 15 calls (VVUS120317C00015000, $5.10, up $4.15) which were going for $1.75. This lowered our cost basis to $10.85 but we will likely have to sell the shares at $15 if they maintain a price above our “strike price” until mid-March.
So here is our point.
If you had $8,000 and started taking these trades, the first trade would have made $1,250. The second trade $1,300. The third trade would have made you $1,220. The fourth trade would have made $1,610 and our current trade will make $4,150 if shares are called away at $15 in mid-March.
The total profits would add up to be $9,530. The return on the $8,000 investment would be 120%. So yes, we may have left a little on the table but by writing covered calls, we lowered our risk. If shares would have fallen to $5 on a negative vote, you still would have banked $5,380 from selling call options and we could have closed the trade out on the bad news and still made money.
This is another reason why the Wall Street pros who bash covered call writing have no clue what they are talking about. It was one of the reasons we started the Weekly Wrap newsletter to prove these knuckleheads wrong and to make you money.
Remember, we brought you the Dendreon (DNDN, $14.42, up $0.69) story at $4 before shares made a run past $50. We told you to get out at $40 last summer. We now like the stock again at current levels. We also gave you the Imax (IMAX, $24.69, up $0.73) story at $3 and was bullish up until the low $30’s which is when we told you to get out.
These two stocks are another reason we started the Weekly Wrap. Owning stocks require a little more trading capital and they don’t provide the leverage options do but when you use these two strategies together, man, can they be a powerful combination.
For those of you who do not subscribe to the Weekly Wrap, it is the SAFEST way to play options if you are a new trader and just learning or if you have a trading account under $2,000.
You can sell an option by owning just 100 shares of a stock so the above trades would have yielded the same returns if you would have started with just $800.
Our Weekly Wrap trades were 16-0 last year and we are 12-0 for 2012. We could have up to 10 more positions called away in March. We just added 2 new trades this week where we are expecting profits of 50% and 100% over the next 6-12 months.
If you are not a subscriber to this publication, we have ran specials in the past but we have come to the point where we are on the verge of exploding as subscribers take notice and trading firms find out about our research.
We have kept the price low for those of you who took a flyer and believed in us and we want to offer one more special to everyone who is not a subscriber. One trade will probably pay for this low introductory offer so take notice.
We are offering a special 3-month membership to the Weekly Wrap that we will probably never offer again because the publication is starting to speak for itself. This special rate is for current members and new subscribers and for those of you visiting the website today. We will not advertise this rate either and it will only last through the weekend.
As far as the 2 trades we entered this week, one stock is priced at $9 and we have a 6-12 month target of $15. The other is a stock that could go from $4 to $8 in 1-2 years.
You can sign up for a one-time 3-month membership to our Weekly Wrap newsletter for only $129 to get these 2 new trades which are still at these low levels. This is a 50% savings off our regular subscription price and averages out to just $43 a month. Use promotion code A0FB422004. Please associate with Weekly Wrap 3 month Subscription (Reg. $261).
3-month Weekly Wrap membership – $129 – use coupon code A0FB422004 and go here:
https://secure.MomentumOptionsTrading.com/amember/signup.php
As far as the market, the bulls have finally showed some strength after Monday’s big pop at the open and are pushing our fluff targets once again.
The Dow is higher by 44 points to 12,982 while the S&P 500 is up by 4 points to 1,362. The Nasdaq is higher by 20 points to 2,953.
We also have profits to take in another call option trade as shares have fallen below our Hard Stop. We were able to book profits of 36% but we will be back to trade the options again. It is a $12 stock that is going to $20 this year. Count on it.
Make sure you hit us up on our Weekly Wrap offer to start adding even more profits to your portfolio.
Subscribers, check the Members Area for the updates and we will be back in the morning with our next update.
Tags: covered call trading, Covered Calls, VVUS, VVUS call options
Posted in Covered Calls, Hot Stocks, Market Commentary, Money Management, Strategies, Trade Update, Trading Psychology, Trading Tips, Weekly Wrap | Comments Off
Thursday, February 9th, 2012
9:00am (EST)
The bulls finally caught a break and had some momentum before the bell on Wednesday but struggled to hold their gains as a Greece deadline looms. We held off a day talking about the cash-strapped country because much of the rhetoric is the same and because Greece is still talking to the troika on austerity measures.
The troika is the 3-headed monster made up by the International Monetary Fund (IMF), European Union (EU), and European Central Bank (ECB) and we have mentioned how all three are trying to help Greece pay the mortgage.
We won’t go over all of the proposed details but we can imagine the sheets hitting the fan when the Greek government workers, who are promised jobs for life, get a pink slip. The general public probably won’t be too happy with a 20% cut in minimum wage.
Despite the nervousness, the bulls won their second-straight session and now hold a slim lead for the week.
The Dow added 6 points to end at 12,883. The blue-chips traded within a tight 76 point range with the high at 12,893 while the low was 12,817. The 12,800 support level has held up well this week but it feels like we are skating on ice.
The S&P 500 gained 3 points and settled just under our 1,350 target at 1,349.95996 to be exact. The index did trade to a high of 1,351 on the dot and these funny numbers might be giving us a bulls or bear clue. Remember, we want to see a close above 1,350 this week or our February pullback (which we predicted in early January but told you to stay long) could be on the horizon.
The Nasdaq added a dozen points and finished at 2,915. We mentioned Tech was at a decade high, and the index reached a peak of 2,918 yesterday, but we still need another 3% move before our 3,000 near term-target is hit.
Although the bulls have the lead for the week, they have been unable to close above our near-term targets. This is making us a little nervous but we have been closing our bullish call positions and banking as much cash as we can before there is a pullback.
We do have some open March, April and June call options that are open but we have locked in half profits on some of them and have stop targets in place to protect profits. We only have two open February positions which expire next week so we are in beautiful shape.
We have turned a $10,000 portfolio into nearly $30,000 in just 6 weeks as we have hit 22-out-of-23 winning trades to start 2012. You can request our track record if you are not a subscriber to see the detailed trade-by-trade performance.
Breaking News – a statement on a Greek debt deal is imminent.
As we head to press, futures look like this: Dow (+12), S&P (+1), Nasdaq (+1). Subscribers, check the Members Area for the updates.
Tags: call options, stock option trading, troika
Posted in Market Commentary, Money Management, Option Trades | Comments Off
|
|
|  | | | |
Get RSS Feed
Bears Get Back-to-Back W’s
Thursday, March 29th, 2012
9:00am (EST)
The bulls are still up for the week but are feeling pressure by the bears following Wednesday’s pullback. Energy and Oil stocks led the way lower while some Tech and Financial stocks helped pull the indexes off their lows as the bears won their second straight session.
The Dow fell 72 points, or 0.5%, to close at 13,126. The blue-chips were down triple digits at one point, trading to a low of 13,069 (-128) before gaining some of the losses back. Dow component, American Express (AXP, $59.06, up $0.84) continues its surge towards $60 after setting a fresh 52-week high of $59.26. Bank of America (BAC), another blue-chip member, jumped 1.5%. Both are current recommendations for our Daily and Weekly Wrap. Caterpillar (CAT, $104.26, down $3.80) led the Dow losers, falling 3.5%. The losses whittled the bulls lead away as they are now only up a slim 45 points for the week.
The S&P 500 dropped 7 points, or 0.5%, to settle at 1,405. The index dipped below the 1,400 level as the bears pushed a low of 1,397 before losing their grips. The bulls are up 8 points for the week heading into today’s session.
The Nasdaq gave back 15 points, or 0.5%, to finish at 3,105. Tech touched a low of 3,086 but is still up 37 points, or 1.2% for the week. Apple (AAPL, $617.62, up $3.14) managed to set a new 52-week high of $621.45. The Apple March 610 calls (AAPL120330C00610000, $9.00, up $1.25) we mentioned yesterday morning reached a high of $13.40 and would have made a nice triple-digit return in less than 24 hours.
We were closed out of 2 more trades yesterday. Our Capital One (COF, $56.98, up $0.10) call option trade made 47% while our Solazyme (SZYM, $14.35, down $0.78) calls made 45%. Our other COF trade that was closed last week made 292% for our subscribers. This brings our 2012 Track Record to 57-11 so far for the year which is an 86% win rate.
We have added some new candidates to our Watch List today and we have moved up a number of Hard Stops to lock in gains on some of our other current trades showing a profit.
Futures are showing a lower open so things could quickly turn south for the bulls if key layers of support fail to hold today. Dow futures are down 39 points to 13,014 while the S&P futures are lower by 5 points to 1,394. Nasdaq futures off 9 ticks to 2,759.
Subscribers, pay close attention to our trade instructions and stay on your toes as we could be adding New Trades today.
Tags: BAC call options, BAC covered call trade, COF call options, SZYM. CAT
Posted in Company Commentary, Market Analysis, Money Management, Strategies, Trade Update | Comments Off