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Thursday, December 1st, 2011
9:00am (EST)
“Whatever method you use to pick stocks (or options)…your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn’t the head but the stomach that determines the fate of the stock (or option) picker” – Peter Lynch with help from us
When we said in August that volatility would be here for a while, we weren’t kidding. In November, we reiterated that statement and said we could see even bigger price swings in the market. Now do you believe us?
Following last week’s debacle to the downside, this week’s surge has erased all of those losses, and then some, after a number of positive developments hit Wall Street before the bell on Wednesday. The Dow futures lit up like a Christmas tree at the crack of dawn after being down triple-digits overnight. The bad dream we had of a market crashing because of the Keystone Kops in Europe disappeared once we woke up. Whew! What a relief! Big Ben saves the day again.
The bulls went ballistic after the announcement by the global central banks to strengthen the existing “swap lines” which will allow them to provide dollars to domestic banks as needed. You can bet Ben Bernanke had a smile on his face after the suit-and-ties learned the Federal Reserve, along with our good neighbors, Canada; and England, the ECB, Japan and Switzerland were acting together to strengthen the existing swap lines…(read more)
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If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are flat as we head to press. Dow futures are down 16 points while the S&P futures are down 2 points. The Nasdaq futures are up a point. Subscribers, check the Members Area for the trade updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Market Analysis, Market Commentary, Trading Psychology | 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
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
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, October 4th, 2011
1:00pm (EST)
We have a mixed market and we may have hit a temporary bottom. We could see a dead-cat bounce today but we aren’t worried. We have locked in profits and set HARD STOPS on the other half of our positions.
We have been sleeping weird hours over the past few weeks as we try to get a read on the overseas markets while at the same time trying to see how our markets will react to the bevy of news that continues to embellish Wall Street. It has paid off.
We have often said trading is for the long haul and since we have started Momentum Options, we have never had a losing year. At times, trading ranges and headline breaking news have whipsawed us out of positions but overall we continue to cover the market’s moves like grass on dirt.
We often get asked why some years were better than others but here is the bottom line. Choppy markets are hard to trade and all we try to do is stay even by playing calls and puts. Trending markets is when we make our bank and we usually trade more contracts than usual because a clear trend is in place. Over time, we have winning streaks and losing streaks but when we tell you a TREND is in place, we usually stay hot.
With the market coming down to our next wave of support targets, there is still more downside risk, but we are also seeing GREAT setups for future CALL option trades.
We will cover more tomorrow but for now we have to roll.
As we head to press, the Dow is down 67 points to 10,588 while the S&P is up 3 points to 1,102. The Nasdaq is higher by 30 points to 2,365. Subscribers, check the Members Area for the updates and more Profit Alerts! We may also release a NEW TRADE today so stay tuned…
Tags: bears, blue-chip stocks, bulls, Dow, Dow quotes, gold quotes, momentum, momentum options, Nasdaq, option mentoring, option trading course, RIMM’s earnings miss, S&P 500, VIX
Posted in Trading Psychology, Trading Tips | Comments Off
Monday, September 19th, 2011
1:00pm (EST)
“I learned a thing or two from ol’ Charlie don’t you know
You better stay away from Copperhead Road”
When we were doing our Weekly Wrap on Sunday, we had a feeling the bulls would struggle at the top of the current trading range following last week’s huge rally. We weren’t too worried about the problems with Greece but we knew when futures opened lower last night the market could test support which was prior resistance.
Renewed fears of Greek going down are back in the headlines after the suit-and-ties failed to come up with a more detailed plan over the weekend to prevent a default. There was some hope the European Union finance ministers would give more money to the bailout fund, as suggested by Treasury Secretary Timothy Geithner, but he got laughed at, basically. Well, we shouldn’t say laughed at, let’s just say, the EU leaders suggested he shouldn’t throw stones at glass houses.
The bottom line, folks, is that Greece is broke and it can’t pay its bills without the bailout loan. Although we expect some resolution this week, the biggest problem is that since the loan was delayed until October, this could actually force Greece to default if they DON’T do something. Like we mentioned last week, the EU doesn’t want a domino effect.
We are more worried about the events here at home as the Fed takes center stage on Tuesday and Wednesday. The two-day meeting will shape the market’s direction this week once the FOMC statement on interest rates is released.
Our portfolio is light as we look to establish our next batch of trades. We have taken a few early positions on longer-term options and we have a few trades that are still open from June and July. Our points is, we have a number of trades that are on our Watch List that should do really well on a market breakout but we need to make sure there is a continued rally and that we don’t fall back into the current trading range.
If we do, we may have to play some short-term put options, but we think the bulls can push new highs once some of the global risks come off the table.
One sector that continues to get hammered is copper which is at its lows for the year. One stock we like to follow when it comes to copper is Freeport-McMoRan (FCX, $39.92, down $1.67) which is down another 4% today and at fresh 52-week lows. The 52-week high is $61.35 so shares are down nearly 35% from their high. However, multi-year support is strong at $30 so we are being careful with this one although we think shares are getting to be a steal. We will be looking at a strangle option trade for Freeport on Tuesday but either way, the stock and options are getting interesting as a possible short or a longer-term rebound with LEAPs.
Be patient. We should get our clues shortly. As far as our ongoing trades, they are holding steady and are showing slight gains. We have already taken half profits in our Research In Motion (RIMM, $23.93, flat) put options to lock in a triple-digit return and the call trades we have open are off to a great start despite today’s pullback.
As far as the market, we mentioned support this morning at Dow 11,350; S&P 1,200; and Nasdaq 2,600. As we head to press, the Dow is down 182 points to 11,327 while the S&P is lower by 19 points to 1,197. The Nasdaq is off 22 points to 2,600. If the bulls can’t hold current levels, the market could be testing lower support levels just as fast as it went up last week.
Subscribers, check the Members Area for more updates.
Tags: bears, blue-chip stocks, bulls, Dow, Dow quotes, gold quotes, momentum, momentum options, Nasdaq, option mentoring, option trading course, RIMM put options, RIMM’s earnings miss, S&P 500, VIX
Posted in Market Analysis, Trading Psychology | Comments Off
Friday, September 16th, 2011
1:00pm (EST)
Special Offer from Momentum Options Trading
Folks, we made the Weekly Wrap a free publication for 3 years before making it a paid publication in 2011. It has been a popular read for many of you and our goal is to get you more involved in the market and to teach you different strategies. Many of you know we have spent 2 years writing an option trading manual “How to Trade Options on Momentum Stocks” and it has been a huge success.
We are also doing videos that are included with the manual and have made it an ongoing option trading course. We have gotten great feedback as many of our subscribers are starting to do their own trades. This has been our ultimate goal but we have been trying to find a way to incorporate both the Weekly Wrap and our option trading manual, together.
In the past we have offered our option trading manual at no charge (an $899 value) with a 1-year subscription to the Weekly Wrap which includes all NEW TRADES and TRADE ALERTS that may come out during the week.
We will be running this offer again this weekend. Also, if you order a 1-year subscription to the Daily this weekend, we will also include the course at no charge.
We also know times are tight and that we only have 2 subscription models for our Weekly Wrap which is a 6-month or 1-year membership. The reason we haven’t offered shorter time periods is because covered call option strategies often take 5 weeks or longer for the trade to play out.
Due to the response we have gotten from many of you who took us up on our offer to try the newsletter for a month, we have decided to include a 3-month membership as well but we are offering it as a super deal to those of you who gave us a try.
The normal price for the 3-month membership is $199 but we will be offering the Weekly Wrap for just $99! As another bonus package, we will also include the rest of September! This means you will get all of our Weekly Wrap, all trades, and trade alerts for the rest of 2011 for less than $1 a day.
We have profiled many winning stocks over the years – Imax (IMAX, $17.89, down $0.62) went from $3 to $38 under our watch and we said to sell at $30 once the 3-D craze wore off back in the summer. A sweet 10-bagger.
We also profiled Dendreon (DNDN, $11.46, down $0.72) when shares were at $4 and made a run past $50. In June, we recommended our readers get out at $40. Now shares are on sale again and we will probably be adding the stock to our covered call portfolio at some point.
We also recommended picking up Netflix (NFLX, $160.80, down $8.45) at double-nickels ($55) back in 2009 before shares reached a high of $300 earlier this summer! Of course, we would have been long gone before yesterday’s debacle but you can still see the huge gains you would have racked up.
Yesterday, we mentioned Diamond Foods (DMND, $88.88, up $10.65), a stock we have been following since the $20’s, and said they could have a big quarter. We profiled the September 80 calls (DMND110917C00080000, $8.40, up $7.35) and mentioned the wide bid/ask prices on the options but we should have pulled the trigger anyways. The calls are up 700%. The October 80 calls (DMND111022C00080000, $10.00, up $6.30) are up 170% and had a bid/ask of $2/$3.50 yesterday and are also having a monster day.
Our point is, we wanted to show you how options and stocks can work together to produce safe, double-digit profits on a monthly basis. We also wanted to show you how powerful options are and that they can return upwards of 700%.
So far this year we have closed out 7 winners with 2 more possibly closing today to bring our record to 9-0 for the Weekly Wrap portfolio. We also have a few other trades that are doing well that could be “called-away” in October.
Here are the results: VVUS +18%, DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7. GE +5% and CLNE +13% are pending today.
If General Electric (GE, $16.26, up $0.18) stays above $16 and Clean Energy Fuels (CLNE, $13.07, down $0.22) holds $13, the trades will be officially closed.
Our next Weekly Wrap is due out this Sunday and we profile two companies a week that could be on the move – up or down. We also go over all of our current trades which include graphs and comments, as well as a look at upcoming earnings.
We would really like to have you on board which is why we are making this special offer.
If you would like to sign-up for the Weekly Wrap and the 3-month membership, please use code BB027CB4CA. Use this code and please make sure you click the 3-month Weekly Wrap membership.
If you sign-up for our 1-year offer for the Weekly Wrap, the option trading course will automatically be shipped to you at no charge. You will also get a username and password to view all of our past videos and futures videos once you sign up. Our next video will be coming out in early October and you won’t want to miss it with the start of 3Q earnings season right around the corner.
We are excited about the rest of 2011 and we think there will be a ton of opportunities to find some undervalued stocks that look primed for covered call writing.
To read more on our options manual, please go here.
We have been in a zone since mid-August and have had some nice winners for our portfolios. The good news is we expect that trend to continue for the rest of the year no matter what the market does. If we correct from here we will make cash. If the market continues to go higher, we will also make money.
As far as the action today, the market has been flat but is picking up steam as we head into the second half of trading. The Dow is up 94 points to 11,527 while the S&P 500 is higher by 7 points to 1,216. The Nasdaq is showing a gain of 16 points and is at 2,623.
Remember, this special offer for both the Weekly Wrap and the Daily publications will only last thru Sunday night so we urge you to get on board. If you sign-up for the 1-year memberships, we will ship the course out to you this weekend.
We will be back Sunday night so until then, have a great weekend! Subscribers, check the Members Area for the updates.
Tags: Covered Calls, Diamond Foods earnings, DMND
Posted in Company Commentary, Trade Update, Trading Psychology, Trading Tips | Comments Off
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Bears Run For Cover
Thursday, December 1st, 2011
9:00am (EST)
“Whatever method you use to pick stocks (or options)…your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn’t the head but the stomach that determines the fate of the stock (or option) picker” – Peter Lynch with help from us
When we said in August that volatility would be here for a while, we weren’t kidding. In November, we reiterated that statement and said we could see even bigger price swings in the market. Now do you believe us?
Following last week’s debacle to the downside, this week’s surge has erased all of those losses, and then some, after a number of positive developments hit Wall Street before the bell on Wednesday. The Dow futures lit up like a Christmas tree at the crack of dawn after being down triple-digits overnight. The bad dream we had of a market crashing because of the Keystone Kops in Europe disappeared once we woke up. Whew! What a relief! Big Ben saves the day again.
The bulls went ballistic after the announcement by the global central banks to strengthen the existing “swap lines” which will allow them to provide dollars to domestic banks as needed. You can bet Ben Bernanke had a smile on his face after the suit-and-ties learned the Federal Reserve, along with our good neighbors, Canada; and England, the ECB, Japan and Switzerland were acting together to strengthen the existing swap lines…(read more)
******************************
If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are flat as we head to press. Dow futures are down 16 points while the S&P futures are down 2 points. The Nasdaq futures are up a point. Subscribers, check the Members Area for the trade updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Market Analysis, Market Commentary, Trading Psychology | Comments Off