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Posts Tagged ‘covered call trading’ Weekly Wrap Profit Alert (HRB) for 3/5/14

Wednesday, March 5th, 2014

11:00pm (EST)

Working overtime as usual…

As a reminder, one of our current trades for our Weekly Wrap was stopped out late this afternoon as our Hard Stop was triggered on the other half of the HRB call option trade.  We made a decent double-digit profit and the company will be reporting earnings on Thursday.

If you are still in the position, please plan accordingly as there could be a major move once the news is released, good or bad.  We will keep the stock on our Watch List for another possible entry point but for now we are out.

Our Weekly Wrap Closed Trade Track Record for 2014 is 10-2 (95-9, or 91% win rate, overall since the start of 2011). Weekly Wrap for 8/19/12

Sunday, August 19th, 2012

11:30pm (EST)

1.  Market Summary 

2.  Groupon (GRPN) – Buy Low, Sell High

3.  Riverbed Technology (RVBD) – Run Off Cisco’s Earnings Surprise

4.  Earnings

5.  Weekly Wrap Portfolio Update 

6.  Week Ahead

(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)

= = = = = = = = = = = = = = =  

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 doing well 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 our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 22-0.  Together, we are 112-36 (76% win rate) for both newsletters and we doubt you will find a hotter options trading service.  

Notes from the Street, NEW TRADE!!!

Tuesday, July 31st, 2012

12:50pm (EST)

As expected, the market has traded in a tight range today and has pushed red and green as Wall Street continues to wait on word from the Fed and the ECB.  It has been a tension filled 48 hours as the debate rages on what they will or won’t do but it is no use in talking about it as the deadlines are almost here. Instead, we will talk stock and options which is what we do best.

RealD (RLD, $9.76, down $2.83) is down 22% today and has touched a low of $9.25.  We have said this stock was going to single-digits and in late May we got aggressive with the June 10 puts when shares were near $12 which burned us. 

We should have went with the August 10 puts (RLD120818P00010000, $0.60, up $0.40) which are up 200% and have traded to a high of 80 cents or the August 12.50 puts (RLD12081800012500, $2.60, up $1.75) which are also up 200% and have traded to $3.10. 

The company reported earnings of $3 million, or 5 cents a share, versus $9.5 million, or $0.17 a share, in the year ago quarter.  Revenue came in at just over $68 million.  Wall Street was looking for profits of $0.15 a share on sales north of $70 million.

Dendreon (DNDN, $4.96, down $1.23) is getting dumped after reporting a wider-than-expected loss of 61 cents a share versus the suit-and-ties forecast for a loss of 59 cents a share.  Revenue came in at $80 million versus estimates for $86 million as sales of Provenge continue to slip.  The prostate cancer drug is facing increased competition and Dendreon said it would shutdown one of its Provenge manufacturing plants in an effort to cut costs.  Shares of Dendreon are at their lowest levels since 2009 and are at pre-level prices before Provenge was even approved.  This was one of our favorite stocks from a few years ago and it made our subscribers a lot of money after soaring from $4 to over $50.  We said back in 2011 when shares fell below $40 to stay away from Dendreon because shares would get a lot cheaper.

Although they look “attractive” at these levels, the stock could fall to $3 or $2 which is maybe when you want to take a flyer.  Shares would basically be a long-term call option with the chance of a takeover somewhere down the road.  Dendreon needs a new CEO and a better sales team because the drug is worth something but someone is looking at this company as its market cap continues to shrink.

As we head to press, the market has trading lower with Tech turning negative along with the rest of the indexes.  The Dow is down 35 points to 13,038 while the S&P 500 is off 4 points to 1,381.  The Nasdaq is lower by a point to 2,944.

FaceBook (FB, $21.77, down $1.38) has made another fresh low of $21.61 and appears headed to $18.  The S&P Volatility Index ($VIX, 18.62, up 0.59) is up 3% and is creeping its way to 20…

We do have a NEW TRADE for you today and it is a carry-over trade on a current position that is showing a nice double-digit return.  We are still holding out for triple-digits but we may have to go out to the September option chain to get our gains.

Subscribers, check the Members Area for the updates and please use limit prices to get the best fills.

Dow Trips 13,000/ FaceBook (FB) Taps New Lows

Friday, July 27th, 2012

1:45pm (EST)

The news Wall Street has been dying to hear finally arrived after Thursday’s close as FaceBook (FB, $24.07, down $2.77) announced its first quarterly earnings as a publicly-traded company.  There was much debate on where their numbers would come in at and not one analyst stepped-up to the plate with a “Buy”, “Hold”, or “Sell” rating before the close because none of them knew what to expect.

Shares popped 5% on the initial news release after matching expectations and beating on revenue but were down 10% just 30 minutes later.  FaceBook went out at $24 in after-hours last night and those losses have carried over into today’s session as shares have reached a low of $22.28.

We said on Wednesday that FaceBook could get a kitchen-pass from the suit-and-ties because it would be their first time stepping up to the earnings plate.  Most rookies’ who step up to the Big Leagues strike out in their first at bat, unless they are special. 

Of course, one at bat doesn’t make a career but FaceBook said some things that spooked investors.  The company took a massive charge, monthly active user use is falling, and gross margins are slipping. 

In mid-June, we did some chart work on FaceBook and came up with a near-term price target of $24.  At the time of our recommendation, shares were at $28 and we decided to go with the July 24 puts which have already expired.  We got into trouble right off the bat as shares closed at $30 the following day.  By month end, shares had made a high of $33.45 but we still felt the stock would come back down to the mid-$20’s which is why we pushed the trade.   

Of course, our time frame was a little off and we should have went with the August puts which would have given us a little more time for the trade to play out.

Although our FaceBook July trade was a debacle, it shows that sometimes your homework can be right on but the timing can be just a little off.  We knew FaceBook was in a no win situation and we were hoping they would have reported earnings BEFORE the July options expired but at the time of the trade, the company’s earnings date wasn’t confirmed. 

It was rumored FaceBook would report July 20, which is when the July options expired but we should have waited for confirmation.  If we had went with August put options the trade would have drastically different results.

We did blow the trade and we hate losers as much as you do but we got a moral victory just seeing shares fall below $24 last night in after-hours.

We were also looking for Coinstar (CSTR, $50.97, down $8.25) to fall below $60 last week.  We also ran out of time on a July put option trade for Coinstar as we said the market makers would keep the stock above $60 on expiration day.  Today, shares are down 14%. 

We normally don’t like to take the same trade twice after getting burned on an option but in this case we should have followed through with our instincts and added to both positions by buying August or September put options.

Our 2012 Track Record is 105-31 for the year which is a 78% win rate so we can’t beat ourselves up too bad.  When we make a trading mistake, we still like to look back on our trades to see if we can learn anything.

We also did some chart work last night to confirm a few resistance points because futures were up throughout the night.  Although this morning economic news wasn’t all that great, the market has continued to rally after more comments on the euro has gassed today’s gains.

Angela Merkel and Francois Hollande issued a joint statement saying “Germany and France are deeply committed to the integrity of the Euro Zone.  They are a determined to do everything to protect the Euro Zone”.

We thought Tuesday could be the breakdown out of the current 3-month trading range as the market was teetering at the bottom but the recent comments overseas has everyone on Wall Street buying into the hype. 

We shall soon find out how serious Europe is, along with our Fed, on how committed they are to quantitative easing.  Greece will be back in the headlines on Monday and the Fed meets next week.  If they are all talk and no action, the gains from today will quickly evaporate.

As we head to press, the Dow is up 193 points to 13,080 while the S&P 500 is higher by 25 points to 1,384.  The Nasdaq is surging nearly 60 points and is at 2,952.

We have some last minute updates before the weekend so let’s get on it.  We will be back Sunday night/ Monday morning with our next issues of the Weekly Wrap and Daily.  Until then, have a great weekend everyone!

Bulls Poised For Weekly Gain

Friday, June 8th, 2012

12:25pm (EST)

The bulls are looking for redemption following last week’s drubbing and are on track to recover nearly all of the losses if the current action holds up.  Futures were pointing towards an opening loss of up to 0.5% but after a test lower the market has powered higher as we enter the second half of trading.

The bears tried to extend the momentum from yesterday’s late session comeback on more pain in Spain as their banks try to get a rescue plan which might or might not be reached over the weekend.  

Economic news didn’t have much impact on the market as the Trade Balance matched expectations while Wholesale Inventories increased 0.6%, versus expectations for a pop of 0.4%.  

Today’s action is a little choppy as traders decide on what positions they are taking over the weekend but we have already made up our mind.  We are staying short.

Despite the pullback, rally, choppy action this week, we were able to close 2 more winning trades (+29% and +14%) and we took partial profits in another option trade that is currently up 255%.  We have now closed 20-straight winning trades since late April and 36-out-of-37 since late March.

June options expire next Friday and we mentioned in our Weekly Wrap that the next few weeks would likely result in a major breakout or breakdown for the market.  The first 6 trading days of the month have seen the bears push support and the bulls test resistance.  The volatility has produced a mini volatile trading range but it is only the beginning of possible larger move into the summer that could go either way.

We have a lot to talk about this weekend and we are still holding back on the playbook a little until we get a clear trend.  We normally like to trade up to 15-20 positions at once but we are currently at half that which means we have plenty of room to play the next major move. 

Our Track record for 2012 is now at 98-20 which means we are at a 83% win rate for all of our trades.  We refuse to rest on our success though as we continue to see the current environment as a great opportunity to trade options. 

When the market is giving us gifts like this, it is important to squeeze as many trades for profits as you can because you never know when the market will throw you a curveball.

The bulls have been impressive after going down on Monday’s open with 3 fingers up.  The major indexes were thisclose to drowning and breaking support before they were tossed a possible QE3 lifejacket.   

We still have the second half of trading to go and unless the bulls break down like a rented mule, they should get the weekly win.

The Dow is currently up 20 points to 12,482 while the S&P 500 is higher by a point to 1,316.  The Nasdaq is showing a gain of 8 points to 2,839.

We have a few updates to cover on our current trades before we roll and we will be back Sunday night with the Weekly Wrap.  Until then, have a great weekend everyone!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Hi Rick,

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

    Hi Rick,

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

    Hi Rick,

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


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

    Rick –

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

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

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


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

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