1:00pm (EST)
The bulls are putting an explanation point on this week’s rally as the market continues to move higher. We got all the news we needed this morning when the U.S. jobs declined less than expected. The report is still subject to debate and there are probably a few skeletons in the closet but the “here and now” is that the market is rocking.
The Dow is currently up 83 points to 10,527 while the S&P 500 is higher by 11 points to 1,135. The Nasdaq continues to shine and is showing a pop of 27 points as it stands at 2,319.
We said in our Weekly Wrap that the market could continue to climb a “wall of worry” and this seems to be the case. We have covered a bunch of stocks this week and we have closed several nice trades in our Members Area. Our subscribers closed a F5 Networks (FFIV, $61.13, up $0.43) trade on Wednesday for a 150% gain and a Cree (CREE, $69.13, up $0.06) call option trade for nearly 30% gains.
There were two stocks we followed outside the Members Area this week that are also on a roll.
Walt Disney (DIS, $33.00, up $0.43) got an upgrade a day after these quotes from us on Wednesday:
“Walt Disney led the Dow higher and looks like it wants to challenge its 52-week high of $32.75. We have followed Disney for years and we usually have pretty good success playing call options on the stock. In September 2009, we grabbed our subscribers 72% on a call option trade and we recently closed out another trade for a small 12% win. In other words, there could be a trade here if Disney continues higher.” (END)
We wanted to add some call options on Disney to our portfolio but we held off when the stock popped yesterday.
The other company we want to talk about is TiVo (TIVO, $17.38, up $0.85). We did a big write-up yesterday because there has been a story developing at TiVo since June 2009 that we have been covering like grass on dirt. We profiled 3 options yesterday in our 1pm update that could have easily paid the bills this month:
The March 10 calls (TUK100320C00010000, $7.40, up $0.80) were at $5.70 in our 1pm update yesterday and you could close them now for a 30% gain. Remember, these options opened at $1.05 on Thursday. The total gain from yesterday’s open would be a staggering 600%.
The March 11 calls (TUK100320C00011000, $6.60, up $2.00) were at $4.50 and are up another 48% today.
For our Kenny Rogers fans, the “Gambler” trade we profiled, the March 17.50 calls (TUK100320C00017500, $0.75, up $0.20), are up nearly 40%. Over 53,000 contracts traded hands on Thursday. Wow.
We mention this because these types of trades are what makes option trading so lucrative and why we spend so much time on research. We also wanted to PROVE to people that YOU can make this much money on a single option trade.
We often hear people laugh when we tell them they can make this much money when using options in the stock market because they don’t believe us. People think we are full of sheet. The talking heads say the same thing but we keep it real and here is the devil in the details on where they are wrong.
In 2009, our subscribers made 550% on a Google (GOOG, $563.41, up $8.82) call option trade and a 1,150% on a Research In Motion (RIMM, $68.89, down $0.09) call play.
The point is, we want you in on the action and we want you to trade with us for the long-term. Often times we have subscribers sign up and then cancel after a month because we may have profiled a losing trade. Folks, we are going to have them but we have a track record for a reason. We try to teach patience and when the market is in a rhythm the profits can be super great. The losers suck but the winners make up for that.
We see more juicy trades on the horizon weather the market continues higher or has a sudden reversal. However, we think next week could be another bull run. We will be back Sunday night with the Weekly Wrap with some fresh ideas and a look at next week’s action. We will also be updating all of the CLOSED trades for our 2010 Portfolio so that you can view our results. Current subscribers, check the Members Area for the HOT updates.
Market Mixed On HealthCare Concerns
Monday, March 8th, 2010
12:50pm (EST)
The bulls are taking a breather as they prepare to take the market higher over the next few weeks. Of course, the bears are still playing and they are getting a little action today but we think the trend is still up.
The Dow is currently down 20 points to 10,545 while the S&P has slipped 2 points and is at 1,137. The Nasdaq, however, is also showing a slight gain and is higher by 4 points to 2,330.
We got some more rhetoric from the President concerning HealthCare which could be weighing on the market. He also took another shot at Goldman Sachs (GS, $169.57, up $2.39) but the stock has been rallying lately off the $165 level.
Imax (IMAX, $14.92, up $1.20) is at fresh 52-week highs after taking in record sales for the opening of Alice in Wonderland. The movie was shown in 188 domestic Imax theaters which contributing $12 million of the film’s overall opening gross of $116 million.
These numbers represent over 10% of the overall domestic box revenues but the kicker is that Imax was only on 3% of the total screens. The company’s average screening was a whopping per $64,362 joint. Overseas, they made another $3 million on 53 screens. Wow.
Imax is a story we have been covering for 3 years and some of our subscribers have been loading up on this stock when it was under $4. We don’t buy stock but we have profiled several call options trades over the past few years that have done well.
The company announces earnings this Thursday.
We have a lot to cover in the Members Area so we want to get our subscribers inside. We also have NEW TRADE we cover in today’s update.
Tags: Goldman Sachs, GS, Imax, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off