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Posts Tagged ‘Abercrombie & Fitch’

MomentumOptionsTrading.com ANF Trade Update for 5/21/10

Friday, May 21st, 2010

11:30am (EST)

We thought we would give everyone a sneak peek into our exclusive Members Area as we close one of our trades today.  We have been on a roll and we wanted to show you some of the profits our subscribers are making…in real time.

anf052110

Our CLOSED track record is updated weekly and we will be adding some of our winners (and losers) for everyone to see.  We also wanted to take this time to thank all of you who have written us with super comments.


MEMBERS AREA  

Abercrombie & Fitch (ANF, $35.98, up $0.48)

June 35 puts (ANF100619P00035000, $1.95, down $0.35)

Entry Price:  $1.05 (5/17/10)

Exit Target: $2.00+ (closed half at $1.90 on 5/20/2010) 

Return: 86%

Stop Target: $1.50, raise to $2.00 (HARD STOP)

Action:  We have closed the other half of this trade as our hard stop has been hit.  The average selling price was $1.95 as we closed half at $2.00 and half at $1.90.  The puts traded as high as $2.70 but the market has bounced back and we want to lock in some profits before the weekend hits.

We will be back at 1pm with another update. 

Abercrombie & Fitch Beats Estimates

Friday, November 13th, 2009

9:15am (EST)

Abercrombie & Fitch (ANF, $36.76) is up 5% this morning in pre-market trading after beating Wall Street’s earnings expectations.  The company said it earned $39 million, or $0.44 a share, versus $64 million, or $0.72 a share, in the year-ago period.

The 40% plunge in third-quarter earnings should have sent the shares plunging but we didn’t feel too comfortable shorting this one.  We have been talking about how shares were right as resistance ($37-$38) but Wall Street has chosen to look forward to the company’s future prospects and is ignoring today’s lousy report.  This is why trading earnings are so tricky…

Shares are up $2.39, to $39.15, and if the gains hold the stock will be at a new 52-week high…

We have a great story in the Members Area this morning on Netflix (NFLX, $58.19, down $1.25) and why you might want to take a look at the company.

Bottom Line:  We think Netflix could be a $100 stock by next summer.

If so, find out how you can make 10x or more on your money on the RIGHT option trade.  In other words, if we are right with our new option trade this morning, for every $150 you invest it could be worth $2,000.  Or $1,500 into $20,000.  We show you how this morning…

Futures are up as we head to press…Dow futures are up 17 to 10,206 meaning we are headed for a slightly higher open this morning.

Apollo Group Down After Barron’s Comments

Monday, November 9th, 2009

12:50pm (EST)

Finally, Barron’s has done us a favor…

Most of you know Barron’s and I don’t see eye-to-eye on a lot of things and every now and then it seems the magazine will run an article on a company that we have profiled as a trade.  Call it déjà vu, luck of the draw, or how the cookie crumbles but the firm ran a negative piece in its Weekend Roundup on the for-profit colleges that talks about how the low graduation rates are and the high debt students are carrying despite not graduating. 

Of course, we have been on this trade like grass on dirt and we recently rolled out of a profiled Apollo Group (APOL, $53.84, down $2.17) November put position into a December put option position.  Current subscribers are up 30% on the new trade and we are looking for more downside if we can get some more negative SEC news about the company… 

Well, well, well…look who got an upgrade this morning…Abercrombie & Fitch (ANF, $37.69, up $2.68) is flying higher after Goldman Sachs (GS, $175.36, up $3.58) upgraded the stock from “Neutral” to “Buy” and added it to their Conviction Buy List.  Goldman also raised their 6-month price target from $36 to $45.  FBR and Credit Suisse also came out with upgrades. 

We have had some luck shorting Abercrombie & Fitch and the 7% surge today has put the stock right in our target zone.  However, the storm is too strong for us to step in here and the company announces earnings on Friday.  Some think the company will surprise but we don’t feel the urge to buy call options either.  We just don’t trust the company… 

RadioShack (RSH, $20.17, up $2.43) is up nearly 14% today after the company said they will sell Apple’s (AAPL, $199.73, up $5.39) iPhone at their stores.  The company said the iPhone will be available in the Dallas-Fort Worth and New York City areas beginning later this month and in stores nationwide in 2010.  We recently profiled a RadioShack trade that returned many of you over 150%, and as you can imagine, the analysts are tripping over each other to upgrade this one. 

Credit Suisse also upgraded RadioShack from “Neutral” to “Outperform”, calling the news a “game-changer”.  I like how powerful that made this sound because it will help the Shack’s earnings in the quarters to come.  Credit Suisse echoes our sentiment and commented that the iPhone could add more than 25 cents to 2010 earnings.  The price target was raised from $15 to $25.

FBR Capital got into the action by raising their 2010 estimate from $1.75 to $2.00 per share.  The raised their rating on RadioShack to ”Outperform” and the price target from $23 to $26.

Another stock we have been watching closely is Research In Motion (RIMM, $60.78, up $2.06) which broke through $60 despite a downgrade from Susquehanna.  There seems to be some takeover chatter hitting the water coolers this morning and most of it centers on Microsoft (MSFT, $28.68, up $0.16).  Although it is nothing new, some traders think Microsoft could finally be interested in launching a bid for RIMM.

This rumor will likely get shot-down as the day drags on although the deal between the two companies makes a lot of sense…

And finally, Priceline.com (PCLN, $175.07, up $3.07) reports AFTER the bell.  We were under the assumption the company would be reporting BEFORE the bell but obviously that is not the case.  Our resource had said the firm would report before the bell and when we didn’t see anything by 9am this morning we should have double-checked.  In any event, the trade we profiled from Friday is positive and we have updated the trade in the Members Area along with a few others…

The Dow has hit a new high for the year as it is up 155 points to 10,179.

Dendreon Making Noise Again

Monday, October 12th, 2009

12:40pm (EST)

The market is moving higher today as the Dow now stands 100 points away from 10,000.  Currently, the index is up 37 to 9,901 and traded as high as 9,931 earlier this morning.  Trading has been fairly light due to the Columbus Day holiday and the bond markets are closed.  There are no major economic reports today so the bulls could make their run in the afternoon. 

Exxon Mobil (XOM, $70.25, up $0.98) has busted through $70 and I had mentioned that we missed a trade when the stock traded to a low of $66 last Monday.  I listed the November 70 calls (XOMKN, $1.85, up $0.35) outside of the Members Area because they were up 40% that day and I didn’t like the entry price of $1.50.

Since it was sort of a “Free Trade”, I thought I would expand my thoughts on the subject.  There is resistance at $71-$72 for the stock and if you got in at $1.50, set stops there.  If Exxon can muster up some momentum then shares have a shot at $73-$74 where further resistance comes into play.  If the stock is at $73 by November 20th, the November 70′s are worth at least $3; at $74 they are worth $4…

One of our favorite Biotech’s is getting a pop today.  It looks like Dendreon (DNDN, $29.38, up $1.90) could be on the move again.  On the last day of August, we profiled a Dendreon trade that returned subscribers 100% in a little over two weeks.  In March, Dendreon made the move from $5 to $25 and some subscribers made 10x that. 

Dendreon will submit its application for Provenge to the FDA in November but today’s jump comes on news that the company added two new directors to its board. 

One of them is chief executive of Roche’s Genentech unit and the other is a former Eli Lilly (LLY, $33.88, up $0.10) manufacturing executive.  I don’t think we get in today but I’m looking at the option chain to see which ones could benefit the most if a buyout offer is coming…

Speaking of noise, Abercrombie & Fitch (ANF, $35.97, up $1.15) has continued its rebound and is setting up nice for us. 

I will be back in the morning with the trade updates and possibly some new gems.  Let’s hope the bulls continue to push.

Bulls Resume Rally

Thursday, October 8th, 2009

1:00pm (EST)

The bulls are resuming their climb towards Dow 10,000 after getting positive earnings from Alcoa (AA, $14.54, up $0.34) and a couple of better-than-expected economic reports.  The Dow added nearly 250 points on Monday and Tuesday and took a breather yesterday as it lost 6 points.  Currently, the Dow is up 93 to 9,818 while the S&P 500 is up 12 points to 1,070.  The Nasdaq is chipping in with a 27 point rally and is at 2,139.

The Labor Department reported that new claims for jobless benefits fell to 521,000 last week, down from 554,000 the previous week and better than Wall Street had expected.  The bulls found added momentum in this report because it was the lowest level since early January. 

Retail stocks are rolling as retailers saw their first sales gains in more than a year last month.  The sector showed an increase of 0.1% for September, compared with a 1% drop a year ago.  I don’t see what the big deal is but a number of stocks are benefitting as a result. 

Abercrombie & Fitch (ANF, $35.14, up $2.48) is up nearly 8% and we just closed a short-side trade that netted us nearly 30%.  The stock is now at the “top” of its recent trading range so it remains to been seen if it breaks resistance here and heads up to $40 or falls back to $30.  We may have to look at this one again next week…

I also wanted to talk about using cheap out-of-the-money options and earnings.  Most of our trades aren’t based around earnings but they come up every three months so you have to work around them.  Most options “experts” will tell you to leave these types of plays alone but if you have a solid trading plan, one that consistently produces profits, then it is cool to throw a little loose change on some speculative trades.

I had mentioned a couple of Alcoa options yesterday that weren’t in the Members Area because I didn’t know which way Alcoa would be reporting.  The Street was expecting a loss but I had pointed out that there was 3x more call buying than put buying heading into Alcoa’s earnings report.

The October 14 calls (AAJN, $0.84, up $0.08) were at 63 cents yesterday in the 1pm update and hit a high of $1.20 this morning…almost a free double that market was giving us…

Anyway, those are the types of returns these types of option trades can provide but you have to be in-and-out.  I thought Alcoa would miss earnings (like Wall Street was predicting) but the momentum in this stock was apparent all week.

We have one of these types of trades going with Intel (INTC, $19.92, up $0.17) right now.  Subscribers, check the Members Area for the 1pm update on this trade and the Pepsico (PEP, $60.13, down $1.04) trade.

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Trader Comments:

    REGINA L.
    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.

    STEVE T.
    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.

    SCOTT H.
    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.

    PETER G.
    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

    LAWRENCE O.
    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.

    C.J.
    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now 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 newsletter...it 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!

    SHAUN
    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!

    MICHAEL K.
    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.

    PARAG P.
    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!

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

    MIKE
    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.

    TRISH D.
    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.

    MIN L.
    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!

    JOE G.
    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!

    GREG F.
    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.

    NOEL
    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.

    TODD F.
    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.

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

    NOEL
    “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. :) ”

    CHRISTIAN
    “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.”

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

    CHARLES M.
    “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.”

    BRYAN C.
    “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.”

    JOHN H.
    “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.”

    JEFFREY
    “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.”

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

    GREG
    “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.”

    KEN
    “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.”

    GARETT
    “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.”

    TERENCE
    “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.”

    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 –

    3/18/11
    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-

    2/3/12
    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.

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