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Tuesday, January 12th, 2010
1:05pm (EST)
The market is testing the lows we got this morning after trying to battle back from a nasty open. The Dow started with a 72 point loss and fell to a low of 10,591, then recovered most of the losses but is currently down 65 to 11,598.
The S&P 500 is off by 12 points to 1,134 while the Nasdaq is taking one for the team. The index is down 33, or -1.4%, and is trading at 2,279 as we head to press.
There are pockets of strength and one sector that continues higher is the Casino stocks. MGM Mirage (MGM, $11.76, up $0.86) is up 8% after getting an upgrade this morning. Goldman Sachs (GS, $167.43, down $4.13) came out and upped the shares to ”Buy” from “Neutral” and slapped a $16 price target on the stock. Sorry, Goldman, you are a little late to the party.
Our Atlantic City trip was a win-win as we went behind the scenes to see what was up during the holidays. We didn’t come away with the feeling that the industry has turned around overnight but we took notice in the action the casinos were getting.
It was good to get away and when we got back, we profiled a trade in Las Vegas Sands (LVS, $18.50, up $0.13) that has paid off in spades. Last Tuesday, our subscribers placed their bets on some call options and they have nearly doubled their money a week later.
Las Vegas Sands was under $17 when we told our subscribers ”LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.”
Folks, here is the power of options if you pick the right ones. As you can see, the stock has made a $2 move in a week which is 12% from $17 to $19. If you would have bought 100 shares of the stock it would have cost you $1,700. Today you would have a $200 profit. Not bad.
Now, take a look at what options can do for you. That $1,700 would have bought you 17 call option contracts that were trading for around a $1 last Tuesday. Today, those same call options are standing at $1.85.
If you do the math, 17 x 1.85 gets us 31.45 which means your $1,700 is now worth $3,145 or 95%. Hmmm. An 8% return with the stock or a 95% return by playing options.
We have updated this position in the Members Area…
Another stock we had recent success with is Amazon.com (AMZN, $128.03, down $2.28). We recently profiled a trade that returned our subscribers over 50% but shares are getting hit again today after touching a high of $142 before the end of 2009. We caught some of that action on the way up and recommending closing the trade after looking at the charts. Since then the stock has been torched but has come back down to serious support levels. We are doing the legwork now to see if there is another trade in Amazon…
Also getting our attention is A123 Systems (AONE, $20.75, up $0.05) which has made a huge bounce of its support areas. The stock recently made a run from $14 to $23 in a little over a month and we got some of that action as well. Our subscribers made nearly a 120% return as we had a target of $23-$24 and got out at the top.
See, it does pay to do your homework folks but that is why you have us. We are still on the fence with A123 but we wouldn’t be surprised to see a quick run back to $23.
That is all we got for today and for those of you who care…Kid Rock at the Borgata in Atlantic City on Valentine’s Day and Jay-Z in March. Be there or be square! The Members Area is updated…
Tags: A123 Systems, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, Goldman Sachs, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, MGM Grand upgrade, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management Posted in Company Commentary, Earnings, Market Analysis, Market Commentary, Trading Psychology, Trading Tips | Comments Off
Tuesday, December 29th, 2009
8:50am (EST)
Futures are pointing towards another strong open this morning as the bulls try to make it seven in-a-row. Dow futures are currently up 26 points, Nasdaq 100 futures are higher by 4.5 while the S&P 500 futures are up 3.3.
In pre-market trading, shares of A123 Systems (AONE, $20.87, down $0.20) are at $21.50 and could be active today.
Microsoft (MSFT, $31.17, up $0.17) got an upgrade this morning and is also getting some action. We knew once shares broke $30 and held that a move to $35 could be in the works.
Fannie Mae (FNM, $1.27, up $0.22) and Freddie Mac (FRE, $1.60, up $0.24) got a lift yesterday after remarks that the Treasury could lift limits on financial aid to the companies. It’s hard to get excited in stocks that are at a buck and there is a reason why these two stocks are so cheap…stay away!
We have updated all of our trades this morning and have provided fresh updates. We would love to hang out but the action is in the Members Area, folks. Current subscribers, check for the updates…
Tags: A123 Systems, alternative investments, asset management, blog Wall Street, buying call options, buying put options, Fannie Mae, financial, financial investment, Freddie Mac, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, Microsoft, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option price, option selling, option trade, options, options expiration, options trade, options trading, options trading strategies, private equity, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strategies options, the Wall Street, trading, trading option, trading options, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management Posted in Hot Stocks | Comments Off
Monday, December 28th, 2009
12:45pm (EST)
The market is trading in a tight today as the Dow has drifted within a 35 point range. Currently, the index is up 11 points to 10,531. The Nasdaq and S&P 500 are also higher by 5 and 2 points, with the Nasdaq standing in at 2,290 while the S&P 500 is at 1,128.
As we expected, volume is light in this holiday-shortened week and traders are looking for clues as to where the market is headed next month. The data we see coming in is pointing towards a higher market but the devil will be in the details.
MasterCard’s Advisors’ Spending Pulse Holiday report indicated shoppers spent a little more this season as retail sales rose 3.6%, compared with a 2.3% drop in the year-ago period. We have been mentioning the battle going on between the retailers and online merchants and both seem to be winning with this big turnaround.
Oil is up 95 cents, to $79/ barrel which is helping energy shares. We are looking for Exxon Mobil (XOM, $69.01, up $0.35) to make a run to over $70 in the next few weeks…
Airline stocks are taking a dive as the U.S. tightened airline security after some idiot smuggled explosives aboard a plan over the weekend. We aren’t big fans of airlines stocks anyway and we rarely trade the sector but this could curtail business travel on lucrative international routes.
AMR (AMR, $7.75, down $0.39), Delta Air Lines (DAL, $11.25, down $0.52) and JetBlue Airways (JBLU, $5.51, down $0.13) are all tanking today. These stocks are probably headed lower but we really don’t see an option trade here.
As far as our other option trades, A123 Systems (AONE, $21.35, up $0.28) has moved into positive territory and we are expecting a run to $24 this week. Meanwhile, General Mills (GIS, $71.46, up $0.51) continues to set 52-week highs. We will be back in the morning with a full update on all of the trades but continue to hold them.
Tags: A123 Systems, airlines stocks, alternative investments, AMR, asset management, blog Wall Street, buying call options, buying put options, Exxon Mobil, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option price, option selling, option trade, options, options expiration, options trade, options trading, options trading strategies, private equity, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strategies options, the Wall Street, trading, trading option, trading options, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management Posted in Company Commentary, Economic News, IPOs, Market Analysis, Market Commentary | Comments Off
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Market Retesting Lows
Tuesday, January 12th, 2010
1:05pm (EST)
The market is testing the lows we got this morning after trying to battle back from a nasty open. The Dow started with a 72 point loss and fell to a low of 10,591, then recovered most of the losses but is currently down 65 to 11,598.
The S&P 500 is off by 12 points to 1,134 while the Nasdaq is taking one for the team. The index is down 33, or -1.4%, and is trading at 2,279 as we head to press.
There are pockets of strength and one sector that continues higher is the Casino stocks. MGM Mirage (MGM, $11.76, up $0.86) is up 8% after getting an upgrade this morning. Goldman Sachs (GS, $167.43, down $4.13) came out and upped the shares to ”Buy” from “Neutral” and slapped a $16 price target on the stock. Sorry, Goldman, you are a little late to the party.
Our Atlantic City trip was a win-win as we went behind the scenes to see what was up during the holidays. We didn’t come away with the feeling that the industry has turned around overnight but we took notice in the action the casinos were getting.
It was good to get away and when we got back, we profiled a trade in Las Vegas Sands (LVS, $18.50, up $0.13) that has paid off in spades. Last Tuesday, our subscribers placed their bets on some call options and they have nearly doubled their money a week later.
Las Vegas Sands was under $17 when we told our subscribers ”LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.”
Folks, here is the power of options if you pick the right ones. As you can see, the stock has made a $2 move in a week which is 12% from $17 to $19. If you would have bought 100 shares of the stock it would have cost you $1,700. Today you would have a $200 profit. Not bad.
Now, take a look at what options can do for you. That $1,700 would have bought you 17 call option contracts that were trading for around a $1 last Tuesday. Today, those same call options are standing at $1.85.
If you do the math, 17 x 1.85 gets us 31.45 which means your $1,700 is now worth $3,145 or 95%. Hmmm. An 8% return with the stock or a 95% return by playing options.
We have updated this position in the Members Area…
Another stock we had recent success with is Amazon.com (AMZN, $128.03, down $2.28). We recently profiled a trade that returned our subscribers over 50% but shares are getting hit again today after touching a high of $142 before the end of 2009. We caught some of that action on the way up and recommending closing the trade after looking at the charts. Since then the stock has been torched but has come back down to serious support levels. We are doing the legwork now to see if there is another trade in Amazon…
Also getting our attention is A123 Systems (AONE, $20.75, up $0.05) which has made a huge bounce of its support areas. The stock recently made a run from $14 to $23 in a little over a month and we got some of that action as well. Our subscribers made nearly a 120% return as we had a target of $23-$24 and got out at the top.
See, it does pay to do your homework folks but that is why you have us. We are still on the fence with A123 but we wouldn’t be surprised to see a quick run back to $23.
That is all we got for today and for those of you who care…Kid Rock at the Borgata in Atlantic City on Valentine’s Day and Jay-Z in March. Be there or be square! The Members Area is updated…
Tags: A123 Systems, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, Goldman Sachs, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, MGM Grand upgrade, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
Posted in Company Commentary, Earnings, Market Analysis, Market Commentary, Trading Psychology, Trading Tips | Comments Off