Covered Call Options | Momentum Stock Options Trading Alerts and Option Picks Blog

Blogs Directory

EatonWeb Blog Directory

Finance Seek Directory

3-Week Trading Range Could Be Broken

Monday, April 23rd, 2012

9:00am (EST)

“Another clue and possibly the final piece of the bear’s puzzle will be if they get a negative close on Monday. The S&P has not closed down on back-to-back Friday’s and Monday’s all year. The prior THURSDAY and Monday were down days and this past Friday was a loser. If this Monday ends in a bear victory it could mean money is moving to the sidelines and our predication, or warning of a correction could be on the horizon.

We like to remember the old saying that stocks or the market often take the stairs higher but sometimes tend to take the elevator on the way back down. If volatility picks up like we think it will and the market continues lower, we will be on track for another sweet week.” (4/15/2012 Weekly Wrap/ Monday Morning Outlook)…

****************************

If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a powerful start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and MONTHLY double-digit gains for our Weekly Wrap. Our 2012 Track Record is now an incredible 72-18, or an 80% win rate!

Our list of winners include +475% on AXP, +292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.

Our Weekly Wrap Covered Call Portfolio is 19-0 for 2012. We were 16-0 in 2011. Some of our sweet include +55% on SZYM, +27% on CLNE, +38% on VVUS, +19% on MGM, 18% on DNDN, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.

Tags: covered call options, covered call trading. momentum stocks, stock options trading advisors
Posted in Covered Calls, Earnings, Market Analysis, Market Commentary | Comments Off

Dow Slips but Bulls Keep Momentum

Thursday, January 12th, 2012

9:00am (EST)

We were a little surprised to see Tech show strength yesterday given the Microsoft (MSFT, $27.72, down $0.12) news that PC sales had dipped 1% but the bulls were able to brush aside the bear attacks as the major indexes finished higher for the most part.

Normally, a warning like this would have knocked the socks of the Nasdaq and Microsoft but it’s no shock the evolution of smartphones has hurt the PC industry although we still think of the home computer as “home base”. Microsoft is adapting, and well we might add, though Wall Street might disagree as one suit-and-tie cut the company’s earnings estimates yesterday.

The Dow fell 13 points, or 0.1%, to settle at 12,449. The index did manage to sneak into positive territory just before the closing bell to hit 12,462 and the low came in at 12,399 which means support held.

The S&P added a half-point to close at 1,292.48. The high was at 1,293 as the bulls continue to keep their eyes on a move above 1,300. The low came in at 1,285 which was easily above the 1,275 and 1,250 support levels we have been covering.

The Nasdaq gained 8 points, or 0.3%, to finish at 2,711. Tech traded below the 2,700 level at the open and kissed a low of 2,690 before finally turning the corner shortly after lunch.

We mentioned earlier this week the market would have to deal with some debt offerings from Italy and Spain which could create some headwinds for the bulls. The good news is the auctions were this morning and they went well.

It looks like another busy day as we will be releasing 6 NEW TRADES for our Weekly Wrap this morning. Look for them shortly after the open. With 10 possible current trades ready to be called away next week, we want to reload the portfolio. Folks, the average return on the trades will be double-digits and if you can average these types of returns on a monthly basis you will easily double your money in a year.

To twist your arm even more to make you say “money”, we are also offering a 1-year membership to our Weekly Wrap for just $299. This publication is normally priced at $599 so it represents a savings of 50%. You can use the coupon code 5F181DD20D thru the end of this month to join and please make sure you choose the 1-yr subscription model for the WEEKLY WRAP. This newsletter ended 2011 with a 16-0 track record and aims for monthly double-digit profits. Remember, we currently have 10 trades that could get called away in the next week for mid to high-teen double-digit returns and 6 more coming your way today. For those of you who subscribe to our Daily, here is your chance to get on the Weekly Wrap bandwagon as well.

We may also add a NEW TRADE or 2 to our Daily newsletter which has stayed hot in 2012. The trades are listed on our Watch List and are thisclose to becoming official recommendations.

Futures are up as we head to press and look like this: Dow (+19), S&P (+3), Nasdaq (+6).

Subscribers, check the Members Area for the updates and stay on your toes for NEW TRADES and possible PROFIT ALERTS throughout the morning.

Tags: covered call options, MSFT, Weekly Stock Market Wrap
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off

Market Flat After Bullish Breakout

Wednesday, December 22nd, 2010

1:10pm (EST)

The market has traded in a tight range following yesterday’s breakout but the action is on the upside as the major indexes are showing slight gains. Economic news has been mixed but hasn’t been much of a factor and the “high profile” earnings reports are already out of the way for the week. Strength has been in the Financials which has kept the bears at bay.

As far as the boring stuff, the Commerce Department said gross domestic product rose to 2.6%, which was a small increase from its earlier estimate of 2.5%, but below Wall Street’s expected rise to 2.8%. Elsewhere, the National Association of Realtors said that the sales of existing homes rose 5.6% in November to 4.6 million which was also slightly below estimates.

Currently, the Dow is up 12 points to 11,545 while the S&P 500 is up 3 points to 1,258. The Nasdaq is showing a 4 point pop and is at 2,671.

One stock that has been on fire this week is Patriot Coal (PCX, $18.58, down $0.13) which jumped another 7% yesterday following Monday’s 7% pop on an upgrade. Although shares are slightly lower today, they did make a run past $19 in early morning trading.

If you recall, this was our featured covered call trade for the Weekly Wrap before it went to a subscription based service and we recommended buying the stock while at the same time, selling a call option for every 100 shares you purchased.

We also profiled another covered call trade for our daily service which is showing a profit as well and will be included in the Weekly. Folks, covered calls are an easy way to learn options and participate in a stock that has the potential to go up.

We only look for premium trades that are going to make you money and although these types of trades are “boring”, they are also safe AND they let you enjoy any dividend payouts – providing shares aren’t “called” away from you by the expiration date on the options you sold.

Remember, we are currently running an incredible deal right now which includes our option trading manual, “How to Trade Options on Momentum Stocks” and “Momentum Stocks Watch List”, for FREE when you purchase a 1-year subscription to either our daily or weekly newsletters.

We honestly feel this is one of the very best and easiest options trading manuals that you will find on the internet and includes ongoing videos.

We are offering this deal because we want you as long-term subscribers and we want to teach you how to find incredible trades by using solid fundamental and technical analysis. We have been on a roll since October as we have nearly a 90% win rate on our trades since then. Folks, it has been a choppy year but we told you when the market broke out of its range and a trend developed then it would be easier to trade the market and options.

After 6 months of a trading range from hell we tried to stay even with the market and our portfolio is showing a gain for the year as we have hit on nearly 65% on our trades overall. We have profiled 5 triple-digit winning trades since the breakout but we see even better opportunities in 2011.

We aren’t sure if the trend will continue to be as strong as it is now to start 2011 but we are expecting a bullish run through April. Of course, there will be volatility along the way but a lot of investors are buying the market and money flow is strong.

We are offering these special deals because we don’t want you to stay with us just for a month. We want you with us for the entire year so you can learn how the market works and we want you to realize that trading is for the long haul. We have down months just like everyone else but we always look at the big picture which is how you did for the year.

Most newsletters or option services will not show you there track record or don’t even have one. There is a reason for that. We don’t roll that way. Our track records are updated and posted on our website Weekly and our OPEN positions are covered TWICE a day.

In fact, many option services are shutting down shop until the New Year and are only providing an update if something happens to your position. Some option newsletters only provide an update every few days or once a week. This is crazy.

The market changes daily, weekly, and monthly which is why we update our positions twice a day and we will keep working to find new trades this week and next.

We seriously believe if you purchase our option trading manual, read our updates, and follow our videos, you will become a successful option trader. Remember, this deal is only good through the end of 2010 and is the perfect gift to yourself to learn how to trade options. If you have questions, email us.

We will be back in the morning with a fresh outlook but current subscribers can check the Members Area for the latest trade updates.

Tags: call options, covered call options, Patriot Coal, PCX
Posted in Earnings | Comments Off

Cisco Systems Update

Monday, May 18th, 2009

8:00pm (EST)

Cisco Systems (CSCO, $18.72, up $0.80) had a super day as it added nearly 5% and closed near its high on Monday. I had talked about buying the stock and writing a covered call against the shares in the Weekly Wrap which would have lowered your cost basis.

The stock opened at $18.15 and if you waited a little after the opening bell, it fell to a low of $18.06. Let’s say you got in at $18.15. A 100 shares would have cost $1,815 and if you had sold one July 19 call (CYQGA, $0.88, up $0.30) you would have received about $65 as the calls opened at 61 cents.

This lowers your cost basis in the stock to $1,750 ($1,815 – $65) but you are now obligated to sell the stock at $19 if the option is exercised by July 17th. In other words, your gains are capped should Cisco run past $20.

Still, if the stock is “called” away from you at $19 your profit would be 9% for 2 months (or sooner) worth of work. The good news is that the option wouldn’t be called away immediately unless the stock hits $19.65 which is the other guy’s breakeven point. However, if the stock is at $19.10 or anything over $19, realize the option can be exercised at any time.

One of the disadvantages of doing this strategy is if Cisco runs to $22 then the July 19 calls would be worth at least $3 which would have been a 200% profit if you had just bought the call options straight-up.

Tech started off the week hot and if Cisco sneezes it might break $19 this week…

Rick Rouse
Rick@OptionsMentoring.com

Tags: Cisco Systems, covered call options, options blog
Posted in Covered Calls | No Comments »

Our updated 2012 Track Record is now at 85-18 for an 82% win rate. We have closed 24-straight winning option trades since late March!

Despite the recent volatility, we have given more "locks" to our subscribers than a Vegas bookie. If you started with a $10,000 trading account, our CLOSED option picks would have made you over 600% by now. In other words, YOUR $10,000 option trading account would be worth over $70,000 as we have become one of the most powerful option newsletters in the business. Our biggest trade of the year so far was hit in early May when shares of Green Mountain Coffee Roasters (GMCR) fell 50% after an earnings miss which made our subscribers 576% on the put options!

We DON"T count "half" closed trades twice, or "third" closed trades three times like other option newsletters do. Some option services will fluff their Track Records up by using these smoke-and-mirror tricks. They will also "average down" a losing trade in hopes of it coming back then will record the "average" price of the trade when it was really 2 bad trades. Most option websites DON'T have track records and say they give 300% winners. The devil is in the details.

We don't play these types of games which is why we have the most dedicated subscribers in the business because we have earned their trust. We have recommended 103 trades, 85 winners, 18 losers for 2012. Pretty simple and pretty powerful. We also have verified auto-trading partners who trade our recommendations for your account if you cannot watch the market. They will also tell you how good and how honest our service is.

Here are some of our other profitable triple-digit recommendations: Capital One (COF) call options +423% in 8 days, American Express (AXP) call options +310% in under 7 days, magicJack (CALL) call options +80% in 3 days, Microsoft (MSFT) call options +124%, STX call options +100% in 2 weeks, +114% and +131% on 2 MGM Resorts (MGM) call options trades in 3 weeks, +158% on Zynga (ZNGA) call options and +107% in Aflac (AFL) call options in 6 days. We also had a +200% winner with Scientific Games (SGMS). Some of our double-digit gains include +58% on WPRT calls, +80% on TSM and +38% on INT call options.

Our Weekly Wrap is 35-0 since the start of 2011 and is 17-0 for 2012. Some of our winners include +55% on Solazyme (SZYM), +27% on Clean Energy Fuels (CLNE), +38% on Vivus (VVUS), +17% on MGM, +18% on Dendreon (DNDN), and +20% on Darling (DAR). Despite what the suit-and-ties say, you can make incredible gains trading the RIGHT covered calls.

Over the past 5 years we are averaging a 75% winning percentage for all our trades despite volatile, flat and choppy markets. Come see why some of Wall Street's pros are following us instead of the Journal!

Here are some of our profitable 2011 recommendations: ORLY call options +191%, VMW call options +100%, JOYG call options +169%; GS put options +184%; FDX put options +164%; OXY put options +74%; +137% on RIMM put options, +1,167% on RMBS puts in 11 days, +296% on FCX calls; +157% on ZAGG calls; +110% on LNKD puts; +133% on RLD put options.

You can also request our Track Records to see all years by entering your email address which will allow you access to the portfolios.

If you are missing these juicy profits, come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2011 Track Records by sending us an email or filling out the box below. 665 Total Trades; 459 WINNERS or 7-out-of-10.

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.

Posts Tagged ‘covered call options’

3-Week Trading Range Could Be Broken

Dow Slips but Bulls Keep Momentum

Market Flat After Bullish Breakout

Cisco Systems Update