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Archive for the ‘Yahoo / Microsoft’ Category

GameStop Sinks/ VIX Rises Above 15

Thursday, March 27th, 2014

12:35pm (EST)

Shares of GameStop (GME, $35.82, down $3.08) are trading lower higher today after reporting earnings before this morning’s opening bell.

The company said profits were $1.89 a share on revenue of $3.68 billion for the recently ended quarter.  The suit-and-ties calls for $1.92 a share on sales of $3.79 billion.

This wasn’t a bad quarter given the circumstances from the weather but most games are moving to the internet and GameStop’s “growth” was from the successful launches of Microsoft’s (MSFT, $39.65, down $0.14) Xbox One and Sony’s (SNE, $18.24, up $0.19) PlayStation 4.  Now that the hardware is out for the games, it will be hard to match those sales in future quarters.

Here were our thoughts in our Weekly Wrap on a possible put option trade (quotes from 3/21/14):

GameStop (GME, $37.82, down $0.62)

April 34 puts (GME140419P00034000, $0.75, up $0.10)

Thoughts:  We have always thought the company has way too many stores but their growth seemed to imply this was okay because GameStop has topped estimates for 4-straight quarters.  However, beats have been by 7,6,5 and a penny, most recently, suggesting growth has slowed.  The 52-week high is north of $57 and the yearly low is just above $25.  We are more bearish than bullish on the stock as we feel shares have been overvalued since the move past $20 over a year ago.” (END)

The April 34 puts (GME140419P00034000, $0.75, up $0.10) closed at 65 cents yesterday and have traded up to 87 cents.

While we liked the trade, we didn’t feel comfortable adding it to our current positions as there was a chance GameStop said something good.  One analysts said the conference call caused some confusion and they actually guided in-line.

We will keep GameStop on our Watch List for a future breakdown as we do see shares in the $20′s

The market has darted in-and-out of positive territory and is currently in the red as we make the turn.  The blue-chips are down a 6-pack to 16,263 while the S&P 500 is lower by 4 points to 1,848.  The Nasdaq is declining 20 points to 4,153 and the Russell 2000 is declining 5 points to 1,150.  We would like to see these levels hold into the close and perhaps a rebound into positive territory.  That would be nice.

The S&P 500 Volatility Index ($VIX, 15.33, up 0.40) has popped back above 15 and has traded up to 15.63.

We have 2 trades that will in play over the 24 hours that will determine if we make a profit or take a loss.  One option trade is on a FDA ruling after today’s close on a drug stock while the other is a bullish option earnings play for Friday morning.  We have updated our current thoughts for both along with the rest of our current trades so let’s go see where things are at.


Subscribers, check the Members Area for the updates.  Note:  We could have a New Trade before the closing bell so stay locked-and-loaded.

Bullish Retail Season Could Further Rally

Friday, November 29th, 2013

12:20pm (EST)

It has been a decade or more since we stood in a Black Friday line but count us as one of the crazies that braved the cold last night to get a good deal.  Of course, we were on a mission to get Microsoft’s (MSFT, $38.24, up $0.64) xBox One after the big retail stores sold out of the systems last Friday on the first day of its release. But there was “no deal”.  You are lucky to just get one.

The systems were going on eBay (EBAY, $50.58, up $1.29) for 7 bills ($700) last week and we haven’t checked today but we would imagine the same.  In the Atlanta area, xBox One’s for going for a “G” ($1,000).

Here in Our Town, all of the Wally World’s had sold out of the xBox One’s within hours after opening their doors.  We decided to visit a Wal-Mart (WMT, $81.11, up $0.18) to see if we could buy the model display but that idea was quickly shot down when the sales associate flatly said “ah, no”.

We the took a ride to Best Buy (BBY, $40.19, up $0.58) to check the scene there and needless to say they were slammed.  We strolled inside and talked to a sales guy who alerted us they had 25 xBox One’s that were going to be sold at midnight.  He said the line was forming outside and we had noticed about a dozen people standing in a huddle outside the store.  It was 30 degrees.

Bingo.  We were in like Flynn.

Near midnight, the tickets were passed out for the xBox One’s and the line was just long enough that all 25 were reserved.  Most consumers figured Best Buy had already sold out if Wal-Mart Stores were out of stock.

After paying a little over $700 for 2 games, accessories and the system and waiting in another line for an hour, we rushed to our office to hook it up.  One word.  Amazing.  No wonder, most of the stocks we have mentioned in our journey are at 52-week highs.

The Dow and S&P 500 are working on their 8th-straight week of gains with the bulls putting on the finishing touches of another good week and month.

As we head to press, the Dow is up 47 points to 16,144 while the S&P 500 is advancing 5 points to 1,812.  The Nasdaq is higher a double-deuce (22 points) to 4,067.

We have some last minute updates so let’s go see where things are at.  We will be back Sunday night with our Weekly Wrap and on Monday morning with our next Daily update.  Until then, have a great weekend everyone!

Market Holds Steady/ Yahoo (YHOO) Spikes/ New Trades!!!

Wednesday, July 17th, 2013

1:10pm (EST)

The market got an initial pop following the start of Fed Head Ben Bernanke’s comments but the zombies seem more worried about Wall Street and the market instead of trying to understand what Big Ben’s monetary policy is all about.  We won’t bore you with the chitchat because all we care about is market direction.

We did a video last night for those of you that have yearly memberships or have purchased our trading course, How to Trade Options on Momentum Stocks, that showed where the market was at and where it could be heading.  The video has some chart work, how to spot a possible earnings trade, which options to choose, futures, and other technical highlights that will help make you a better trader.

We have an entire video collection from over the years that walk you through a ton of option strategies and we urge anyone that has a monthly, quarterly, or 6-month membership to upgrade to a 1-year deal.  If you do, the course is included in your upgrade at no charge.  We don’t often advertise this special offer because we normally only do it once a year in December but now is the perfect time to run the deal that includes our trading course, along with the videos, at no charge, if you upgrade.  The options trading course is priced at $895 and will be shipped to your doorstep at no charge if you upgrade.

If you have recently purchased a yearly membership and did not receive the video, email our support team and we will get it out to you.

As a bonus, you will also receive a 1-year subscription to our Weekly Wrap if you upgrade to a 1-year deal for the Daily.

One of our Weekly Wrap recommendations surged 13% on Monday and we have a few other trades that could be closed for double-digits this week.  As far as the stock we just mentioned, the company has been a favorite of ours for 2 years now and there is no analyst coverage as the suit-and-ties have yet to discover this small-cap gem.  It is a solid investment we discovered at $4 that has traded to a recent high north of $9.

Shares just cleared major resistance at $6 again and could be headed for another major run.  It is a stock we fell could trade to $15-$20 over the next 12-24 months and we are urging you to get on board on one of the fastest-growing companies in its sector/ industry.

Again, if you upgrade to a 1-year subscription to the Daily, you will get the trading course and a 1-year subscription to the Weekly Wrap that is 26-3 for the year and 70-5 since the start of 2011 at no charge.  Our Daily newsletter has had numerous triple-digit returns so far for the year and we have doubled a $10,000 portfolio with the 100+ trades we have recommended so far with a boatload of triple-digit winners.

We do this because trading is for the long haul and not just for a month or two.  Think about it.

As far as the market, the action is still bullish as we head into the second half of trading.  The Dow is up 13 points to 15,464 while the S&P 500 is higher by 6 points to 1,682.  The Nasdaq is advancing 13 points to 3,611.

We mentioned yesterday after closing 3 more winning trades we are again in a perfect position to play the market’s next major move.  Should the bulls continue to push new highs we will play call options but if the bears catch a break and crack support, we won’t hesitate to go short or play put options.

We have a number of trades on our Watch List that are ready to go and the video we did last night showed the current trade we are adding as we start to build out our next batch of trades into September and October.

We just missed a huge winner on Yahoo (YHOO, $29.18, up $2.30) as it was not an official recommendation but is on our Watch List.  Many of our subscribers are emailing us today to thank us for profiling the Yahoo August 28 calls (YHOO130817C00028000, $1.65, up $1.00) this week as a possible earnings trade.  The call options closed at 65 cents yesterday and are up 160% on today’s stock surge paste $29.

Subscribers, check the Members Area for our latest recommendations and stay locked-and-loaded for the remainder of the session in case we see something else we like.  Update:  We are also adding an earnings trade as we head to press!

Google (GOOG) Beats Estimates, Shares Crack $600

Friday, July 20th, 2012

9:00am (EST)

The bulls won their third-straight session on Thursday and made another run at upper resistance levels but ran out of gas midday way through the session.  The surge during the first half of trading was enough to allow them to coast to victory as the bears never got it in second gear.  

The Dow added 35 points, or 0.3%, to finish at 12,943.  The blue-chips tested a high of 12,977 at lunchtime after dipping to a low of 12,889 shortly after the open.  The bulls made a push at 13,000 and if cleared it could be smooth sailing up to 13,200.  We mentioned yesterday if the bulls fail to clear this level by the weekend there could be a test back down to 12,600 over the near-term.

The S&P 500 popped 4 points, or 0.3%, to settle at 1,376.  We said a close above 1,375 would get 1,400 into play and yesterday’s high was 1,380.  The low was 1,371.  The 52-week high is 1,422 which was hit on the first trading day of April.

The Nasdaq led the way higher after jumping 23 points, or 0.8%, to close at 2,965.  Tech touched a top of 2,976 and is a little over 1% away from taking out the 3,000 level.  Unlike the Dow and S&P, the Nasdaq held green all day and above 2,950 which was bullish.

The Russell 2000 fell 3 points to finish at 802.  The small-caps traded to 808 and we said a close above 810 would be bullish but the negative close could be another clue the market is topping.  The S&P Volatility Index ($VIX, 15.45, down 0.71) fell another 4% and has reached our mid-teen target.  There is still a chance the VIX could push the low teens and that would mean the S&P 500 is at 52-week highs.  

After the close, Google (GOOG, $593.06, up $12.30) and Microsoft (MSFT, $30.67, up $0.22) came in with mixed results but shares of both companies got nice little pops in extended trading. 

Google beat estimates and had a huge beat on revenue by $70 million.  Microsoft posted its first ever quarterly loss after taking charges for its online division and an expensive, money losing acquisition.  However, Mr. Softie posted strong sales as revenue rose 4% and topped $18 billion for the quarter.  Google was trading above $600 when after-hours trading closed while Microsoft was above $31.  Both levels are holding before the bell.

You would think futures would have gotten a nice pop but they were weak all night.  Shortly after 1am (EST), Dow futures were down 33 while the Nasdaq futures were flat as a pancake.  They have gotten worse this morning as we head towards the opening bell and look like this: Dow (-66), S&P 500 (-9), Nasdaq (-8).

We have an important chart to show you this morning on a stock we have traded options on 4 times over the past few months.  All of the recommendations have been put options and have made our subscribers 172%, 144%, 29% and 6%.  Shares are right near resistance again so let’s go see what the chart looks like inside the Members Area.

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    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

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Trader Comments:
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year of membership rather than the one quarter. Thanks again, and LOVE YOU ALL. REGINA L.

    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help. STEVE T.

    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide. SCOTT H.

    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485 PETER G.

    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming. LAWRENCE O.

    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again! C.J.

    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace! SHAUN

    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good profitable calls. Keep up the good work. MICHAEL K.

    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!
    PARAG P.

    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN. JAY P.

    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You. MIKE

    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks. TRISH D.

    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock! MIN L.

    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you! JOE G.

    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming. GREG F.

    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade. NOEL

    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today. TODD F.

    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you! PAUL H.

    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ” NOEL

    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.” CHRISTIAN

    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.” JOHN

    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.” CHARLES M.

    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.” BRYAN C.

    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.” JOHN H.

    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.” JEFFREY

    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.” ED

    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.” GREG

    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.” KEN

    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.” GARETT

    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.” TERENCE

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel


    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony


    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob

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