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Tuesday, January 29th, 2013
12:30pm (EST)
The bulls are trying to gather momentum for a final push to new all-time highs and their journey will likely depend on the help or hurt that Amazon.com’s (AMZN, $270.69, down $5.35) and Facebook’s (FB, $31.27. down $1.20) earnings provide.
Amazon is on deck after today’s close and Facebook will be announcing their numbers Wednesday. Amazon carries a rich premium and will need to trounce Wall Street’s numbers while Facebook will have to show strong growth in its mobile division. We haven’t studied the numbers but we have listed a Facebook option trade on our Watch List.
The trade could do very well depending on Facebook’s numbers and shares will likely move 10% or more one way or another. The downside is they disappointment the suit-and-ties and shares fall below $30. For this you would use put options to try to double your money. If shares make a run at $38 on a beat-and-raise, then call options would be your best bet for a triple-digit win.
We will likely stay on the sidelines but we are afraid if we do, shares could rocket like Netflix (NFLX, $164.23, up $2.12) did last week. The earnings trade we profiled was one of the biggest returns we have ever seen (4,000+%) and it showed how a 40 cent option went to over $14 and then $30, Amazing.
Facebook doesn’t have the power to move $100 after earnings but a $5-$10 move is not out of the question.
Research in Motion (RIMM, $15.08, down $1.11) will introduce its new Blackberry 10 model at 10am (EST) on Wednesday and the Fed will give a statement in the afternoon. Tomorrow is lining up to be a big day for news and nonfarm payroll are due out Friday morning.
Hold on tight because we might get white knuckles going into the weekend and the start of February. We love thrill rides and this market is setting up to take us on a wild trip.
We have a lot to cover with today’s trades so let’s get on it. As we head to press, the Dow is up 57 points to 13,939 while the S&P 500 is higher by 5 points to 1,505. The Nasdaq is down 5 points to 3,149.
We have a NEW TRADE and we are closing half positions on another trade that is up 23%. Subscribers, check the Members Area for the updates.
Posted in Earnings, Market Analysis, Market Commentary, Stock Earnings | Comments Off
Thursday, January 24th, 2013
12:25pm (EST)
We mentioned this week would produce some nice earnings trades and one we failed to capitalize on was Netflix (NFLX, $142.82, up $39.56) which is up a whopping 38% today. The company did the exact opposite of Wall Street expected as they reported a profit of 13 cents versus expectations for a loss of 13 pennies.

We had a feeling the company would “survive” considering the deal they recently signed with Disney (DIS, $54.60, up $0.65) which was huge. Netflix has a solid brand name and despite some stumbles, there is some value in the shares.
As cable companies continue to raise prices and provide crummy service, customers are looking for ways to reduce their cable bill or slash them entirely. Verizon (VZ, $42.83, up $0.04) charges an incredible amount of money to use their cable, phone (home and mobile), and internet services. There are so many hidden fees attached to your cable bill that it becomes a headache to figure it out. They charge monthly fees for the cable boxes and they don’t offer the best phone rates as many carriers are a lot cheaper. Customers are paying north of 4 bills to have all of Verizon’s bells and whistles with a phone and data plan.
This is where Netflix comes in. As people move away from traditional cable companies and switch to alternative methods, content will be key as well as pricing. Netflix is $8 or $16 a month an offers a ton of viewing choices. The company is expanding globally but now managing that growth in a better way and their partnerships continue to impress. Shares are still a little lofty at these levels but with so many downgrades and lowered expectations, we should have swung the bat on a cheap call option trade.
The Netflix February 130 calls (NFLX130216C00130000, $14.55, up $13.60) closed at 95 cents yesterday after OPENING at 34 cents and are up a whopping 1,431% today. In other words, a $1,000 investment would be worth a cool $14,550 at the present moment.
There are WEEKLY options available to trade on Netflix and the January 125 calls (NFLX130125C00125000, $16.40, up $16.02) closed at 38 cents yesterday after opening at 16 cents and are up an astounding 4,215% on today’s news. A $380 trade on 10 contracts would have yielded a profit for $16,400!
Now you know why we say earnings season can produce some incredible option returns.
As far as the market, the bulls are flexing their muscles despite Apple’s (AAPL, $460.32, down $53.69) drubbing. The Dow is surging 85 points to 13,862 while the S&P 500 is up a nickel to 1,500. The Nasdaq is down a six-pack to 3,147. Incredible.
We do have more good news for a few of our current trades and we are locking in profits on one that showing a gain of nearly 60%. We said the bulls could run through the first of February and we are looking to ring the register along the way.
Subscribers, check the Members Area for the updates.
Special Reminder: We were stopped out of our Antares Pharma $4.00, flat) covered call trade for the Weekly Wrap. We made single-digits on the trade and we could have written another call option to get the returns to double-digits but we felt it was best to move our money into some faster moving trades. This gets out Track Record for the Weekly Wrap to 46-2 since inception. We will have a special story for you tomorrow on the Weekly Wrap so make sure you read up on it.
Posted in Covered Calls, Hot Stocks, Market Analysis, Market Commentary, Option Trades, Stock Earnings, Strategies | Comments Off
Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
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If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
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Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off
Tuesday, March 23rd, 2010
12:45pm (EST)
The bulls continue their March towards new highs (no pun intended) as the President signs our nation’s new health bill today. The passage of the landmark legislation is now official and many of the changes will take place this year.
Obama said it gets the wheels rolling on ”desperately needed reforms” sought by generations of Americans. He also said America can afford this bill so we shall see.
In economic news, existing home sales fell less than expected as the National Association of Realtors reported sales of previously occupied homes fell 0.6% last month to an annual rate of 5.02 million units. Wall Street had expected sales would fall to 5 million.
Despite some turbulence, the Dow is flying higher and is up 44 points to 10,830. The S&P 500 is up 3 points to 1,168 while the Nasdaq is enjoying a 6 point pop and is at 2,402.
Folks, if we can hold these levels, we could be setting our sights and our next set of targets for the indexes we have been mentioning all week. We would list them but you already know the deal if you have been following us.
Turning to earnings, Walgreen’s (WAG, $35.74, up $0.31) is getting a slight nudge higher despite reporting numbers that failed to match expectations. The company reported a profit of $669 million, or $0.68 a share, versus $640 million, or $0.65 a share, in the year earlier period.

Sales rose 3% to $17 billion but Wall Street was looking for Walgreen to earn $0.71 a share on $17.2 billion in revenue. Although they missed, Walgreen’s earnings matched depressed expectations and gross margins came in better-than-expected which is why shares are seeing a little bump.
We have a lot to discuss in our Members Area and a few of our trades are making explosive moves today to the good. We also have a NEW trade that we will be going after so let’s get to it!
Tags: option picks, option signals, options alerts, stock options trading, WAG, Walgreen's earnings Posted in Earnings, Market Commentary, Stock Earnings | Comments Off
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Amazon, Facebook, RIMM Key for Tech
Tuesday, January 29th, 2013
12:30pm (EST)
The bulls are trying to gather momentum for a final push to new all-time highs and their journey will likely depend on the help or hurt that Amazon.com’s (AMZN, $270.69, down $5.35) and Facebook’s (FB, $31.27. down $1.20) earnings provide.
Amazon is on deck after today’s close and Facebook will be announcing their numbers Wednesday. Amazon carries a rich premium and will need to trounce Wall Street’s numbers while Facebook will have to show strong growth in its mobile division. We haven’t studied the numbers but we have listed a Facebook option trade on our Watch List.
The trade could do very well depending on Facebook’s numbers and shares will likely move 10% or more one way or another. The downside is they disappointment the suit-and-ties and shares fall below $30. For this you would use put options to try to double your money. If shares make a run at $38 on a beat-and-raise, then call options would be your best bet for a triple-digit win.
We will likely stay on the sidelines but we are afraid if we do, shares could rocket like Netflix (NFLX, $164.23, up $2.12) did last week. The earnings trade we profiled was one of the biggest returns we have ever seen (4,000+%) and it showed how a 40 cent option went to over $14 and then $30, Amazing.
Facebook doesn’t have the power to move $100 after earnings but a $5-$10 move is not out of the question.
Research in Motion (RIMM, $15.08, down $1.11) will introduce its new Blackberry 10 model at 10am (EST) on Wednesday and the Fed will give a statement in the afternoon. Tomorrow is lining up to be a big day for news and nonfarm payroll are due out Friday morning.
Hold on tight because we might get white knuckles going into the weekend and the start of February. We love thrill rides and this market is setting up to take us on a wild trip.
We have a lot to cover with today’s trades so let’s get on it. As we head to press, the Dow is up 57 points to 13,939 while the S&P 500 is higher by 5 points to 1,505. The Nasdaq is down 5 points to 3,149.
We have a NEW TRADE and we are closing half positions on another trade that is up 23%. Subscribers, check the Members Area for the updates.
Posted in Earnings, Market Analysis, Market Commentary, Stock Earnings | Comments Off