|
|
|
|
|
 |
|
|
 |
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…
************************
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
Wednesday, January 13th, 2010
Attention Members – Be sure to whitelist our domain with your email program or email service provider to help ensure you receive email updates. For specific instructions, click here.
Posted in Uncategorized | Comments Off
Wednesday, August 12th, 2009
9:25am (EST)
Bank of America (BAC, $15.85, down $0.83)
November 17.50 calls (BYOKZ, $1.20, down $0.30)
Entry Price: $1.25 (8/10/09)
Exit: $1.25 (8/11/09)
Return: 0%
Stop: CLOSED
November 20 calls (BYOKT, $0.56, down $0.14)
Entry Price: $0.50 (8/10/09)
Exit: $0.57 (8/11/09)
Return: 14%
Stop: CLOSED
Action: We closed out the Bank of America call options because I didn’t like what I was seeing with the Financials. The stock was higher in the morning session on Tuesday and when it started to fade we closed the trade. Like I said yesterday, these were “rollover” positions from an earlier trade but there was too much risk heading into the FOMC meeting to stay long.
Visa (V, $68.61, down $0.27)
August 70 calls (VEHHN, $0.70, down $0.30)
Entry Price: $1.60 (7/27/09)
Exit: $0.80
Return: -50%
Stop: CLOSED
Action: We saw this one coming and I said last week it looked like we were going to have trouble with $70. We probably should have closed this trade sooner but our stop wasn’t hit until Tuesday. Still, it’s okay to close a trade early if you gut tells you that you are fighting a losing battle.
Imax (IMAX, $9.11, up $0.06)
September 7.50 calls (IMQIU, $1.75, up $0.05)
Entry Price: $1.90 (8/4/09)
Exit Target: $3.00
Return: -8%
Stop: $1.00
March 2010 12.50 calls (IMQCV, $0.50, up $0.05)
Entry Price: $0.45 (8/10/09)
Exit Target: $1.00+
Return: 11%
Stop: None
Action: Well, you want the good news or the bad news, first? Let’s go with the bad.
After the bell last night, Imax announced another stock offering. The company is selling about 6 million shares at $8.50 which should give Imax another $50 million to pay down debt. In after-hours trading the stock was down 55 cents to $8.56.
You have to hand it to Imax though. They are striking the iron while it is hot. The company just announced its first profitable quarter in three years and will use the money to pay down some debt. So it was a good move and hopefully the new shares will have a warm welcome.
The September calls will take a hit, no doubt, but keep your eyes on the prize. We have the March 12.50′s as a “cheap” out-of-the-money” play that will do well if Imax can trade to $15-$20 in 8 months.
PowerShares QQQ’s (QQQQ, $39.26, down $0.34)
August 40 calls (QQQHN, $0.31, down $0.19)
Entry Price: $0.65 (8/7/09)
Exit: $0.30 (8/11/09)
Return: -54%
Stop: CLOSED
Action: We took the wrong side of this trade on Friday after the bulls had a good week. I was expecting a follow-thru on Monday but the market has been nervous all week.
Wells Fargo (WFC, $26.89, down $1.75)
September 26 puts (FHUUZ, $1.35, up $0.50).
Entry Price: $1.30 (8/11/09)
Exit Target: $2.60
Return: 4%
Stop: $0.65
Action: We dumped BofA to go short Wells Fargo so we will see how this plays out. We don’t need a huge move to the downside to make money with the put options. Short-term I’d like to see the stock test $25 this week so we can make it a quick trade if need be.
Posted in Uncategorized | No Comments »
Monday, August 10th, 2009
11:20am (EST)
Sometimes you get in a zone and it feels like you know how a stock will trade like the back of your hand. Bank of America (BAC, $16.83, up $0.41) is one such stock and here is what I said last night in the Trade Updates for Bank of America:
“The November 17.50 calls (BYOKZ, $1.40, down $0.16) and the November 20 calls (BYOKT, $0.66, down $0.12) could be used as a replacement for the 15’s. Target $1.25 as an entry price for the 17.50’s but they could be considered a buy up to $1.50 if BofA runs again this week. For the 20’s set a limit price of 55 cents and don’t pay no more than 75 cents.” (END)
Well, if you followed that game plan, you are up nearly 50% in less than two hours. The November 20 calls (BYOKT, $0.77, up $0.11) opened at 50 cents so if you had set your limit orders before the market opened, you should have gotten filled. The stock hit a low of $16.16 this morning…
The November 17.50 calls (BYOKZ, $1.58, up $0.18) opened at $1.25 so you should have been filled right around this area as they traded to a low of $1.23 and the difference in the bid and asking prices are only a few cents.
It’s nice to get filled at your limit prices and the opportunities to make money in this stock right now are incredible. Expect to see continued flucuations in the shares but BofA is showing all signs that it wants to go to $20.
The Fed meetings will also have an impact on this trade so we will have to see how things shake out.
Rick@MomentumOptionsTrading.com
Tags: Bank of America November call options
Posted in Uncategorized | No Comments »
|
|
|  | | | |
Get RSS Feed
Bulls Walking on Thin Ice
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…
************************
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