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Posts Tagged ‘covered call options’

Never Short a Dull Market/ Profit Alert (WWE)/ New Trade!!!

Wednesday, March 12th, 2014

1:40pm (EST)

Although we penciled-in some downside action this week, it remains to be seen if the bears’ latest fight turns into a brawl or another whimper.  We have talked about some of the bearish signs that have appeared this week but also said the damage has been minimal as the bulls continue to hold support (and the VIX).

As much as the talking heads and slick talking pros have said the market needs a 5%-10% pullback, we have mentioned we still see another 1%-2% upside potential and that a mini-trading range could develop until the next leg higher (or lower).

These types of environments can be frustrating and another reason why it’s not wise to short a dull market.  If and when the 10% slide comes, we will be ready for it, but in the meantime it remains “a stock picker’s market”.

We have done well avoiding the pitfalls of overtrading and being impatient as we said February is always a tricky month to trade and that March could be volatile.

We have been mostly long call options since the beginning of last year and while we did nibble on a few put options at the beginning of February, we are 27-8 for all of our closed trades.  Our Daily Portfolio is showing a gain of 154% and our Weekly Wrap is pushing profits of nearly 30%.

We have used “cheap” options for much of the year and by that we mean most of the premiums we have paid to place a trade have been under $1.  When there is a clear trend, we will pay up to $2 for nearer-term options.

We do this to reduce our risk.  Options that are priced higher than $2 can have big drawdowns if you losses are capped at 50% and there is major volatility.  Under the same assumptions, this is also 3 or 4 “cheaper” option trades if you are buying 50-75 cent options.  By doing chart work and homework, we usually don’t carry 50% stops on options under $1 because you can get “stopped out” of a lot of good trades by falling into this type of portfolio management.

We have mentioned our new subscribers keep tabs on other major options newsletters because they tell us how frustrated they were before they found us.  Most option newsletters don’t have Track Records and most of them don’t take their own trades.

We don’t roll that way and why we keep our people as we continue to grow.  We work hard to get our results and we care more about making you money than providing useless trades with no accountability.  This is what a lot of the bigger boys do and why they care more about their numbers than yours.

We do have another New Trade today on a stock that is a current recommendation for our Weekly Wrap as well.  Shares are pushing 52-week highs again and are the verge of a blue-sky breakout.

Shares are just south of $6 and could be headed to $8 by late April.  If so, the call options we are targeting could return upwards of 350%.  The current price on the option is 55 cents and they could be worth $2.50 if our Price Target of $8 triggers.  There is heavy action in the trade so it is very liquid and the bid/ask is just a penny spread.

As we head to press, the Dow is down 36 points to 16,314 while the S&P 500 is off 4 points to 1,863.  The Nasdaq is higher by 3 points to 4,310 and the Russell 2000 is up a point to 1,188.

Subscribers, check the Members Area for the New Trade and current updates!

Breaking News!!!  Our World Wrestling Federation (WWE, $29.76, down $0.04) call option trade has officially been closed for a 203% return as we were stopped out of the remaining quarter of the March 30 calls (WWE140322C00030000, $1.40, down $0.30).

March Highs and Lows

Monday, March 10th, 2014

9:00am (EST)

Futures were showing a nasty open for Wall Street on Monday following Russian’s “invasion” into Ukraine but quickly rebounded on Tuesday after softer words were spoken.  The market still had to worry about the unemployment numbers and traded in a tight range until Friday’s surprisingly strong Nonfarm Payrolls report.  The surge at the open to prior resistance and fresh all-time highs ended on a sour note as the indexes ended mixed and showed signs of weakness heading into the weekend. (continued…)

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We have returned some incredible gains to start 2014 and continue to provide the BEST options trades in the business.  Take a look at these gains and get on board now to get instant updates:

Our top winning option recommendations in 2014 so far have been short of jaw-dropping to say the least:

+817% Galen Biopharma (GALE) call options

+250% World Wide Wrestling (WWE) calls

+183% Ariad Pharmaceuticals (ARIA) calls

+108% Galen Biopharma (GALE) calls (piggy-back trade)

+103% Aruba Networks (ARIA) call options

+82% WhiteWave Foods (WWAV) LEAP calls

+60% Ingersoll-Rand (IR) call options

+59% Philip Morris (PM) put options

If you are not a subscriber but would like to get more, real-time trades, please click here.  We are one of the fastest growing stock options trading advisors on the internet.  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 our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis.   If you are new to options or have questions on our style of trading or subscriptions, give us a call to speak to a live trader during market hours.  Call us now at 804.349.4466.

Bulls Reclaim Resistance/ New Trades!!!

Thursday, February 13th, 2014

2:15pm (EST)

The battle at Dow 16,000; S&P 1,825; and Nasdaq 4,200 continues with the bulls reclaiming and holding these levels as we head into the final few hours of trading.

We were pleasantly surprised when we arrived to the office this morning as the power was on and didn’t go out following the heavy snow and rain that hit Our Town last night.  Although we had backup plans, it is always more comfortable to work and write from the trading desk.

There are a number of things we want to talk about, including strangle options trades, but we will save it for tomorrow as we have 2 New Trades we want to get in to.  We have profiled a number of strangle option trades over the past few weeks that have returned gains of 50%-200% on stocks that have been moving 5%-15% and our goal is to get all of subscribers use to trading them.

We have done these types of option trades for our Weekly Wrap and we will cover some of the trades from this week on Friday.  We will also have a coupon for you to sign up for a substantial discount to the newsletter so that everyone can enjoy the powerful returns these types of option trades can provide.

As we head from desk to press, the Dow is up 72 points) to 16,035 while the S&P 500 is advancing 10 points to 1,829.  The Nasdaq is higher by 35 points to 4,236 and the Russell 2000 is surging 10 points to 1,142.

Subscribers, check the Members Area for the New Trades and updates!  We will be back in the morning with a full report.

Market in Wait-and See Mood

Monday, August 13th, 2012

9:00am (EST)

“Here at home the Federal Reserve did nothing and disappointed the suit-and-ties who were looking for a QE3 sugar fix.  We repeatedly said the Fed wouldn’t act but the zombies will be meeting again at the end of the month in Jackson Hole, Wyoming. 

There is a strong feeling that some type of stimulus package could come in September and if there is, Fed Chairman Ben Bernanke, could use the conference as his stage.  He did in 2010 when he announced a QE (quantitative easing) program which lead to a 10% September rally for the S&P.  The index closed at 1,049 on the last day of August 2010 and reached a peak of 1,157 before closing at 1,141 on September 30, 2010.    

Of course, the belief was the Fed would have acted this week if Nonfarm payrolls would have been a disaster but the bottom line is they won’t act until the fuse is about to blow.  This means the ball will be in Europe’s court until they drop it and the market will still be subject to headline risk.

The key to everything going smoothly for the bulls is Germany which has opposed much of the shenanigans from the weaker countries in the eurozone and seems to be getting tired of the bailouts.  Spain could ask for one this week.  If Germany goes along with the ECB’s “new plan” then we would expect the market to rally but again, this could take a few weeks.

Economic news will be light this week and 2Q earnings season is winding down.  Volume has been super low and August is typically a slow and weak month for Wall Street traders as they get the last of their summer fun in. 

The charts are showing mixed signals with the small-caps lacking while Tech and the big-caps are pushing possible new highs.  If we get a tenth-straight lower Monday, it would be good news for the bears. 

If Monday turns out to be bullish, along with the upcoming Friday, the market could test its highs for the year with a possible breakout on deck.  A lower Monday and a negative Friday could mean the indexes have topped and we stay in the trading range with pressure to the downside.  However, August election years are tricky as they can sometimes be VERY bullish so both scenarios are possible.”  (from 8/5/2012 Weekly Wrap/ Monday Morning Outlook)…

The bulls were finally able to snap the bears 9-straight Monday win streak and were able to push resistance throughout the week.  On Friday, the major indexes closed above another bullish level and could challenge their 52-week highs on continued momentum.  The bears were happy to hold the top of the current 3-month trading range but they are losing their bite as the S&P 500 closed higher for the fifth consecutive week.

Final Hour Could Get Interesting

Friday, June 22nd, 2012

3:10pm (EST)

The bulls are bouncing back following their second-worst beating of the year as the market is up 0.5% heading into the final hour of trading.  The opening gains by the major indexes are simply a retest to resistance which just served as short-term support.

Much of the strength has come from the Financial stocks which are getting a pop despite a downgrade from Moody’s (MCO, $34.19, up $0.83) which lowered the credit ratings on 15 global banks.  Of course, Moody’s has been warning of the news and Wall Street has been expecting it so the sector is actually rallying on the news as the “overhang” is lifted.

JPMorgan Chase (JPM, $36.21, up $0.70) is leading the Dow higher and has had a sweet little rally from the June 4 lows.  We have to hand it to Jamie Dimon who looked like a Champ against the Keystone Cops that make up the House Financial Services Committee.  The knuckleheads, led by Barney Frank, wanted to throw their weight around and looked like idiots when they got to arguing with each other earlier in the  week.

One Senator did get it right so we have to give him props as he questioned why they were even there.  Jim DeMint, a Republican from SC said “we can hardly sit in judgment of you losing $2 billion when we lose $2 billion every day”.

There were a few zombies who got brownie points with Mr. Dimon as they asked him about how to fix the financial system and the problems plaguing Europe.

We have always been a fan of JPMorgan and have told you they got squeezed when the market figured out their position and started betting against them.  The $2 billion loss could turn out to be more and we will know more when they announce earnings in July but the next time Jamie speaks, buy call options for the day.

We thought there would be some headline risk with the stock but Jamie Dimon has proved he can hit it out of the park. 

Shares of JPMorgan hit a low of $30.83 on June 4 and have rallied a sweet 20% since.  If you bought options after seeing $30 hold, you probably would have done well with some July or September calls. 

We were hoping shares would trip the $20’s because it would have been a “back the truck up” BUY for our Weekly Wrap but the market wouldn’t give us a discount.

We are still watching the stock and at some point down the road we will likely add JPMorgan to our covered call newsletter but not right now.   

If the market is headed for a 10% drop then JP will follow and maybe we can get in at $30.  Shares could push $40 on continued momentum but hopefully the market will give us another discount to pick up one of the best run investment banks on the planet.

As we head into the final hour of trading, the bulls are still pushing.  The Dow is higher by 77 points to 12,650 while the S&P 500 is advancing 8 points to 1,334.  The Nasdaq is up 28 points to 2,887. 

We have some last minute updates for our current trades so we have to roll.  We will be back Sunday night with our Weekly Wrap so until then have a great weekend everyone!

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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 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! 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 –

    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.

    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

    Rick,

    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

    Rick:
    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

    Rick:

    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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