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Saturday, January 23rd, 2010
5:00pm (EST)
Quick note for our current subscribers…
We have updated our 2010 portfolio in the Members Area today.
We have received lots of emails over the last few days as many of you are nervous of a pending market correction. The Dow lost another 216 points on Friday to finish at 10,172 as the selling pressure continued into the closing bell.
The Dow reached a high 10,763 on Tuesday and the 600 point drop from the high has meant a 5% correction. Are we nervous? Not at all.
In fact a week ago we had this to say:
“We have mentioned our targets for the indexes and from our camp it looks like the market is nearing a top which makes it harder to trade. It’s possible we rally for a few more weeks but once we get to February we think there’s a chance of a 5%-10% pullback.” (END)
Well, we got the 5% decline and next week we may get the other 5% decline.
As we enjoy the weekend, Dow futures are down 187; S&P 500 futures are lower by 20 while the Nasdaq futures are off by 43. Folks, if these figures hold up then we could have a major sell-off on Monday.
We have protected our portfolio by going way out in our call options and we have a current put option open that could do very well if the market does continue lower.
A lot of investors get nervous when the markets tanks or starts to correct but we love it. We’re like a chameleon, we change colors. Folks, if the market is in correction mode then you can make just as much money on the downside as you can on the way up. We still expect some kind of bounce but that may not come until the bears are done pushing.
For instance, we talked about the weakness in Goldman Sachs (GS, $154.12, down $6.75) on Thursday and Friday it dropped another $3 from our 1pm update. Some options traders did well buying Goldman put options. The February 150 puts (GPYNJ, $4.59, up $2.44) jumped over 110% on Friday.
We show you this stuff because you can make just as much with put options as you can call options. So, if the market is going to tank, don’t be nervous. The opportunity the volatility is providing right now is incredible.
There will be a ton of action next week and we will be back Sunday night with a full review of what to expect in the Weekly Wrap. Also, don’t forget to check out our money management video if you haven’t seen it yet.
If you want to see some of the returns you can make in a down market, check out our 2008 portfolio which can be downloaded as a PDF file. For those of you who don’t follow the market, we had a major correction from the summer of 2008 through March 2009. The bull market has been intact since then but the bears are waking up…
Tags: option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Earnings, Money Management, Sectors | Comments Off
Friday, January 15th, 2010
9:00am (EST)
Intel (INTC, $21.48, up $0.52) blew past Wall Street’s forecast after the bell yesterday and reported some impressive numbers.
The company said it earned a profit of $2.3 billion, or $0.40/ share versus $234 million, or $0.04, in the year earlier period. Revenue climbed nearly 30% to $10.6 billion as Intel posted its highest gross profit margins ever, at 65%. Amazing.
The market finished higher on Thursday as the Dow closed with a 30 point gain at 10,710. The S&P 500 added 3 points and settled at 1,148 while the Nasdaq edged up 9 to 2,310.
For those of you who have been following us since the summer, we set targets for the market back in August that are about to be hit. Last Sunday we had this to say:
“The Dow added 11 points on Friday and 190 for the week to close at 10,618. Our near-term target remains 10,800 and this could be the week we take it down.
The S&P 500 gained 3 points to close at 1,145 and for the week the index added 30. In August, we set our target at 1,175 so we are within spitting distance…
As far as the Nasdaq, we clearly saw the strength in Tech back in the summer and set a year-end 2009 target of 2,275 for the index. That level was taken out before Christmas. On Friday, the Nasdaq displayed its muscle once again and had the biggest percentage gain as it added 17 points to close at 2,317.
We remain bullish and our portfolio has consisted of mainly call options since March 2009. We have added put options as “insurance” along the way but we still feel like the market moves higher from here. Of course, once our targets are hit that could all change but the beauty of getting a pulse on the market is that it allows you to change accordingly.
If and when we reach those aforementioned targets, we either, continue higher, stay flat, or retreat to lower levels. The cards to figuring out the next six months on where the market could be headed are being dealt right now. A lot of investors and traders will be ready to pay the ”big blind” this week as 4Q corporate earnings start to come in. We will go over this more on Monday morning.” (END)
Folks, it is important to know where the market is headed because once it gets in a groove, trading becomes easier. If and when we reach Dow 10,800 and 1,175 for the S&P we honestly don’t know what happens next. However, our gut is telling us the market continues higher but we have to wait for the clues to confirm our thesis.
Nobody knows what the market will do from day-to-day but overall the information is out there. There are times when trading options can get choppy but they key is not to “over trade” your accounts.
We talk about this in our Welcome Guide which is at the top of the Members Area page. Obviously, everyone wants to score the big trade but this gig is like all others…you have to grind it out. And you can’t blow up a $2,000 account by buying 10 or 20 contracts with your first trade. Try limiting your portfolio to 3%-5% per trade. In other words, if you buy 10 contracts for each of our trades then you should have a $20,000 account. If you have $10,000 then trade 5 contracts.
Our trades target $500-$2,000 if you are doing 10 contracts as we profile options anywhere from 50 cents to $2.00. Obviously, if you are new to trading or you are starting small then go slow and paper trade with us for a while. And remember, any money you trade options with should be considered “aggressive” and this type of trading is not for everyone.
Options are the most lucrative way to grow a trading account and remember everyone’s results will be different based on your own expectations and risk levels. Also, you will have winning and losing streaks but the goal is to make a 100% return on each trade. This allows you the luxury of having 2 losing trades at 50% if all things are equal. They key is to hit the 400%, 800% and 2,000% trades which we have.
Our documented track records show we have over a 70% winning percentage for the past couple of years so keep this in mind if you join us for a month and start off with a negative trade. For 2010 our track record shows we have closed trades for gains of 13%, 90%, 119%, and 150%. We still have open trades and once we get a few more closed we will start posting the 2010 track record at the end of the month.
This week has been pretty volatile due to options expiration and today is not historically a good one for the Dow. The index has traded lower on 9 of the last 11 January option cycles with some major hits of 1%-2% lower.
As we head to press, Dow futures are down 25; S&P 500 futures are lower by 4; Nasdaq futures down 4.5.
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial investment, funds, future option trading, futures trading, gold investing, hedge fund, hedge funds, how to invest, index funds, index options, invest, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
Posted in Company Commentary, Earnings, Market Analysis, Market Commentary, Money Management, Stock Earnings, Strategies, Trading Psychology, Trading Tips | Comments Off
Tuesday, December 22nd, 2009
12:50pm (EST)
The Dow is trying to put together a three day winning streak (including last Friday) as we start the second half of trading. The index currently is trading at 10,456, up 42, and has hit a high of 10,470 today.
We got some good news from the housing sector as November’s sales rose 7.4%. Sales had been expected to rise to 6.25 million and we got 6.54 million.
In other economic news, the Commerce Department said the economy grew at a 2.2% pace in the third quarter, as the recovery got off to a weaker start than previously thought. The figures were released before the market opened and were a drag on the futures as Wall Street was expecting a 2.8% growth rate.
As far as specific stocks, Amazon.com (AMZN, $134.15, up $1.36) made a run to $136 which may not seem like much but it was enough it get our subscribers a 50% return. We have another trade in which we feel we have a Tiger-by-the-tail in our General Mills (GIS, $70.60, up $1.00) trade. The stock is at a new 52-week high and we feel a run to $73 is possible. Current subscribers, check the Members Area for the updates.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades
Posted in Company Commentary, Economic News, Hot Stocks, Market Analysis, Money Management, Option Trades, Strategies, Trading Psychology | Comments Off
Friday, December 4th, 2009
1:30pm (EST)
“Momma’s got a squeezebox she wears on her chest and when Daddy comes home he never gets no rest”…
“Come on and squeeze me…”
This song by The Who has to sum up how the bears are feeling today.
The bulls have been singing all morning after the Dow rushed out to a 150 point gain and reached a high of 10,516. However, the bears clawed their way back and actually took the Dow lower to 10,311. Folks, that is a 200-point swing and we are only at halftime. Currently we are at 10,385, up 19. The S&P is holding 1,104.
We still have a target of 10,800 for the Dow but remember the market always looks forward and can turn on a dime. Having said that, while we continue to be bullish, January could get ugly if and when volatility gets insane…and it will.
Folks, it’s been a busy day and a busy week but we thought we would spend a little time talking about our service today instead of the market.
We know some of you are new and some of you have just been with us for 90 days or less. Well, the past few weeks have been rough and some of you may not have gotten the results you have been hoping for with our service.
The first thing to remember is that options are all about momentum which is where we came up with our name. For those subscribers that have been with us for months and since our inception (18 months) know that we have been pretty dead on with our market analysis. We were right when we called for the crash in late 2008 and we were right when we called for a rebound from the March lows. Check out our 2008 and 2009 portfolios and really analyze it. Take a look at the option positions we started in March 2009. We weren’t sure of a market bottom but we were acting as if it was by going 2 or 3 months out on our call option picks. They returned our subscribers some incredible profits.
Just recently we have been calling for Dow 10,800 and back in August and September we said the market would still rally. But what happened last Friday was an EVENT that can happen to all good option traders. We were stopped out of 4 of our trades when the market tanked on the Dubai news. By Tuesday of this week we told you Wall Street has put that in its rearview mirror.
The point is we had stops in place and nobody knew last Friday just how bad the Dubai news was. The picture brightened, unemployment came down and the market is rallying.
One of the trades we were stopped out of was Microsoft (MSFT, $30.06, up $0.23). We were in the December calls (MSQLF, $0.55, up $0.07) for 65 cents and we showing a profit but the stock kept having trouble at $30. However, we said once this level broke the call options could do well. Well, they hit a high of 87 cents this morning as the stock traded to a high of $30.37 this morning. This would have represented a 34% gain but instead we show a 54% loss for the portfolio as we were stopped out.
The point is, we are incredibly accurate with market direction and you buy call options in a bull market and put options in a bear market. Of course, it’s a little harder than that but you get the general idea. The fact that last Friday took us out of some great trades didn’t let it affect our mental toughness. We are still trading.
There is also the fact that some subscribers take some trades but not ALL of them. So, one subscriber could be selective and have all losing trades which would lead them to believe we don’t know what the heck we are talking about and want to cancel their service. Another subscriber might be selective and have all winners and think we are the best thing since two-piece bikinis.
Folks, we will have losing trades. And we are not ashamed to admit them. But, if we show in our track record and one trade was a 100% winner and one was a 100% loser in the same week you would think we lost money. Well, that would not be the case.
If we did a full position on one trade and invested $2,000 on 10 contracts and a half of a position (5 contracts) on an earnings trade that could go either way, then we still made money. And we explain the trades this way in our Members Area. Earnings trades are all or nothing. They can make you over 400% like our Priceline.com (PCLN, $220.24, up $0.23) did or they can lose 97% in a day. However, if you did a full position on Priceline.com like we recommended and a half position on Aerospostale (ARO, $29.05, up $0.10) then you felt little impact on your portfolio. If you did the trades in reverse, then your results could be worse.
FedEx (FDX, $87.21, up $1.27) is pushing $90 and we were in a trade that got stopped out as well. FedEx still looks strong but got weak just for a minute which put us on the sidelines.
Also, some subscribers have asked for a cell phone alert service.
The easiest way to keep in touch with us is this way and it will ensure that you get our email updates as soon as they are released.
First, go out and buy a smart-phone or if you have one make sure our emails are coming through.
When we send out an email you should get it in a few seconds. Once we send out an email our phone makes a “ding” sound and it lets me know I have an email. (We copy ourselves on all emails we send out and it works every time).
Then, if there is action you need to take or want to take you can make the trade right from your phone. We have all of our brokerage accounts loaded on the phone as most of them have apps.
We understand that people work and can’t watch the market which is why we try to have select times at which we do the trade updates…9am and 1pm. Today’s is late because we are doing a long update…
The update by 9am gets you prepared for the market and the 1pm update keeps you caught up. Now, if we do an update outside of those time frames OR we do the 1pm update a little early or a little late then you can rely on your email to keep updated.
The trading manual…
It will be $2,495 and a one-year membership is included. The manual will teach you how to really look for option trades and will give you a better insight to how we break down our trades. This is a one-time special offer because all of you are our charter members. Remember, we are limiting our circle of subscribers so that our trades don’t get crowded. Once we reach our limit, the trading manual will be $2,495 with NO free one-year membership. If you already have a membership, this will be added to your current membership.
The last thing we want to say is this. We get more joy in teaching people how to trade options than actually trading. Yes, we still trade and yes, we like money and yes, we trade our own accounts. But when you write us and tell us your success stories then we know we have a happy subscriber.
Look. We wanted to create this service to teach people how to trade options and find trades. The picks we provide are a bonus and we realize there are subscribers who want us to do the work which is cool. If we make them money maybe they will tell their friends about us. The bottom line is that we want you to make money and we don’t want you to be afraid of options or some of the “transgressions” you may have. (Insert Tiger Woods joke here…)
We have updated all of our current trades before we head out for the weekend and we will be back Sunday night with the Weekly Wrap…
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades
Posted in Market Commentary, Money Management, Option Trades, Sectors, Strategies, Trading Psychology, Trading Tips, Yahoo / Microsoft | Comments Off
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MomentumOptionsTrading.com Portfolio Update for 1/23/10
Saturday, January 23rd, 2010
5:00pm (EST)
Quick note for our current subscribers…
We have updated our 2010 portfolio in the Members Area today.
We have received lots of emails over the last few days as many of you are nervous of a pending market correction. The Dow lost another 216 points on Friday to finish at 10,172 as the selling pressure continued into the closing bell.
The Dow reached a high 10,763 on Tuesday and the 600 point drop from the high has meant a 5% correction. Are we nervous? Not at all.
In fact a week ago we had this to say:
“We have mentioned our targets for the indexes and from our camp it looks like the market is nearing a top which makes it harder to trade. It’s possible we rally for a few more weeks but once we get to February we think there’s a chance of a 5%-10% pullback.” (END)
Well, we got the 5% decline and next week we may get the other 5% decline.
As we enjoy the weekend, Dow futures are down 187; S&P 500 futures are lower by 20 while the Nasdaq futures are off by 43. Folks, if these figures hold up then we could have a major sell-off on Monday.
We have protected our portfolio by going way out in our call options and we have a current put option open that could do very well if the market does continue lower.
A lot of investors get nervous when the markets tanks or starts to correct but we love it. We’re like a chameleon, we change colors. Folks, if the market is in correction mode then you can make just as much money on the downside as you can on the way up. We still expect some kind of bounce but that may not come until the bears are done pushing.
For instance, we talked about the weakness in Goldman Sachs (GS, $154.12, down $6.75) on Thursday and Friday it dropped another $3 from our 1pm update. Some options traders did well buying Goldman put options. The February 150 puts (GPYNJ, $4.59, up $2.44) jumped over 110% on Friday.
We show you this stuff because you can make just as much with put options as you can call options. So, if the market is going to tank, don’t be nervous. The opportunity the volatility is providing right now is incredible.
There will be a ton of action next week and we will be back Sunday night with a full review of what to expect in the Weekly Wrap. Also, don’t forget to check out our money management video if you haven’t seen it yet.
If you want to see some of the returns you can make in a down market, check out our 2008 portfolio which can be downloaded as a PDF file. For those of you who don’t follow the market, we had a major correction from the summer of 2008 through March 2009. The bull market has been intact since then but the bears are waking up…
Tags: option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Earnings, Money Management, Sectors | Comments Off