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

Blogs Directory

EatonWeb Blog Directory

Finance Seek Directory

MomentumOptionsTrading.com Weekly Wrap for 12/18/11

Sunday, December 18th, 2011

11:15pm (EST)

1. Market Summary

2. Green Dot (GDOT) – The New “Visa”?

3. Earnings

4. Weekly Wrap Portfolio Update

5. 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 about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. We will end 2011 with a perfect 16-0 covered call track record for our Weekly Wrap publication and we are looking to keep the streak going into 2012.

Tags: Covered Calls
Posted in Market Analysis | Comments Off

Diamond Foods (DMND) is a Diamond in the Rough

Friday, September 16th, 2011

1:00pm (EST)

Special Offer from Momentum Options Trading

Folks, we made the Weekly Wrap a free publication for 3 years before making it a paid publication in 2011. It has been a popular read for many of you and our goal is to get you more involved in the market and to teach you different strategies. Many of you know we have spent 2 years writing an option trading manual “How to Trade Options on Momentum Stocks” and it has been a huge success.

We are also doing videos that are included with the manual and have made it an ongoing option trading course. We have gotten great feedback as many of our subscribers are starting to do their own trades. This has been our ultimate goal but we have been trying to find a way to incorporate both the Weekly Wrap and our option trading manual, together.

In the past we have offered our option trading manual at no charge (an $899 value) with a 1-year subscription to the Weekly Wrap which includes all NEW TRADES and TRADE ALERTS that may come out during the week.

We will be running this offer again this weekend. Also, if you order a 1-year subscription to the Daily this weekend, we will also include the course at no charge.

We also know times are tight and that we only have 2 subscription models for our Weekly Wrap which is a 6-month or 1-year membership. The reason we haven’t offered shorter time periods is because covered call option strategies often take 5 weeks or longer for the trade to play out.

Due to the response we have gotten from many of you who took us up on our offer to try the newsletter for a month, we have decided to include a 3-month membership as well but we are offering it as a super deal to those of you who gave us a try.

The normal price for the 3-month membership is $199 but we will be offering the Weekly Wrap for just $99! As another bonus package, we will also include the rest of September! This means you will get all of our Weekly Wrap, all trades, and trade alerts for the rest of 2011 for less than $1 a day.

We have profiled many winning stocks over the years – Imax (IMAX, $17.89, down $0.62) went from $3 to $38 under our watch and we said to sell at $30 once the 3-D craze wore off back in the summer. A sweet 10-bagger.

We also profiled Dendreon (DNDN, $11.46, down $0.72) when shares were at $4 and made a run past $50. In June, we recommended our readers get out at $40. Now shares are on sale again and we will probably be adding the stock to our covered call portfolio at some point.

We also recommended picking up Netflix (NFLX, $160.80, down $8.45) at double-nickels ($55) back in 2009 before shares reached a high of $300 earlier this summer! Of course, we would have been long gone before yesterday’s debacle but you can still see the huge gains you would have racked up.

Yesterday, we mentioned Diamond Foods (DMND, $88.88, up $10.65), a stock we have been following since the $20’s, and said they could have a big quarter. We profiled the September 80 calls (DMND110917C00080000, $8.40, up $7.35) and mentioned the wide bid/ask prices on the options but we should have pulled the trigger anyways. The calls are up 700%. The October 80 calls (DMND111022C00080000, $10.00, up $6.30) are up 170% and had a bid/ask of $2/$3.50 yesterday and are also having a monster day.

Our point is, we wanted to show you how options and stocks can work together to produce safe, double-digit profits on a monthly basis. We also wanted to show you how powerful options are and that they can return upwards of 700%.

So far this year we have closed out 7 winners with 2 more possibly closing today to bring our record to 9-0 for the Weekly Wrap portfolio. We also have a few other trades that are doing well that could be “called-away” in October.

Here are the results: VVUS +18%, DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7. GE +5% and CLNE +13% are pending today.

If General Electric (GE, $16.26, up $0.18) stays above $16 and Clean Energy Fuels (CLNE, $13.07, down $0.22) holds $13, the trades will be officially closed.

Our next Weekly Wrap is due out this Sunday and we profile two companies a week that could be on the move – up or down. We also go over all of our current trades which include graphs and comments, as well as a look at upcoming earnings.

We would really like to have you on board which is why we are making this special offer.

If you would like to sign-up for the Weekly Wrap and the 3-month membership, please use code BB027CB4CA. Use this code and please make sure you click the 3-month Weekly Wrap membership.

If you sign-up for our 1-year offer for the Weekly Wrap, the option trading course will automatically be shipped to you at no charge. You will also get a username and password to view all of our past videos and futures videos once you sign up. Our next video will be coming out in early October and you won’t want to miss it with the start of 3Q earnings season right around the corner.

We are excited about the rest of 2011 and we think there will be a ton of opportunities to find some undervalued stocks that look primed for covered call writing.

To read more on our options manual, please go here.

We have been in a zone since mid-August and have had some nice winners for our portfolios. The good news is we expect that trend to continue for the rest of the year no matter what the market does. If we correct from here we will make cash. If the market continues to go higher, we will also make money.

As far as the action today, the market has been flat but is picking up steam as we head into the second half of trading. The Dow is up 94 points to 11,527 while the S&P 500 is higher by 7 points to 1,216. The Nasdaq is showing a gain of 16 points and is at 2,623.

Remember, this special offer for both the Weekly Wrap and the Daily publications will only last thru Sunday night so we urge you to get on board. If you sign-up for the 1-year memberships, we will ship the course out to you this weekend.

We will be back Sunday night so until then, have a great weekend! Subscribers, check the Members Area for the updates.

Tags: Covered Calls, Diamond Foods earnings, DMND
Posted in Company Commentary, Trade Update, Trading Psychology, Trading Tips | Comments Off

MomentumOptionsTrading.com Weekly Wrap NEW TRADE for 9/13/11

Tuesday, September 13th, 2011

11:00am (EST)

For those of you who use our cell phone alerts and Twitter updates, we have just released a NEW TRADE for our Weekly Wrap publication. Subscribers, please check the Weekly Wrap Premium section or your email inbox for the update. We will be back shortly with our Daily update and possibly another NEW TRADE for our Daily publication.

Tags: ACAS, Covered Calls
Posted in Trade Update | Comments Off

Western Digital (WDC) Gets Busy on M&A

Monday, March 7th, 2011

1:05pm (EST)

The market opened slightly higher and was showing a little momentum as oil came off its highs of the session. There was news that Libyan President Gadhafi was looking to negotiate a deal with rebel forces for his safe departure from the country but those rumors haven’t been confirmed. This gave the bulls some hope the crisis could be resolved but the bears are attacking as the market is now trading well off its highs and is negative territory as we head into the second half of trading.

In Merger & Acquisition (M&A) news, Western Digital (WDC, $33.56, up $3.55) is up over 12% after the company announced it was acquiring Hitachi’s hard-disk drive business for nearly $4.3 billion in cash and stock. Normally, when a company buys out another, the acquiring company’s stock price will head lower but this deal is a little different. Western Digital will pay $3.5 billion in cash but is giving Hitachi 25 million of its shares, or 10%.

We did a big write-up in our Weekly Wrap on Western Digital in mid-January

“As for Western Digital, its HDDs (hard disk drive) are used in desktop computers, notebook computers, enterprise storage products, servers, workstations, video surveillance equipment, networking products, digital video recorders, satellite and cable set-top boxes, and external storage appliances. It also offers hard drives as stand-alone storage products for personal data backup. The iMac uses its HDD. And Mac sales are projected to double. The company also makes SSDs (solid state drives).

Although HDDs may eventually get replaced by SSDs, that won’t happen for at least several years. SSDs are primarily used in small devices such as the iPhone, iPod, and iPad. The Macbook Air is currently one of the few laptops using SSDs. Other laptops and desktops still use HDDs. Price for HDDs is still cheaper than SSDs of the equivalent memory and storage. And that will stay that way for some time with prices for both dropping. Storage demand is expected to stay strong with the increasing need for servers to store all the content being shared or steamed over the internet. PC demand is also expected to grow, too.

The technical picture also shows that a strong move upward may be developing.” (END)

The deal will give Western Digital’s a market share of 50% for HDD’s and pad its lead as top dog. Seagate Technologies (STX, $13.85, up $1.41) is second and has 30% covered, so, in essence, these two companies will own over three-quarters of the market pie. Don’t be surprised if some anti-trust issues pop-up.

As we head to press, the Dow is lower by 78 points to 12,091 while the S&P 500 is off by 12 points to 1,309. The Nasdaq is showing the most weakness and is down 49 points to 2,735.

Tags: best option trader, best trading signals, call options, chicken trade, Covered Calls, financial options advice, momentum options, Momentum stocks, option quotes, option signals, Option Trades, option trading, options broker, options mentoring, options newsletter, options prices, put options, stock broker, stock price, stock quotes, strangle option trade, WDC, winning option trades
Posted in Hot Stocks, Mergers and Acquisitions | Comments Off

Oil Pushes $107, Futures Slightly Higher

Monday, March 7th, 2011

9:05am (EST)

The market made some wild swings last week as volatility picked up along with geopolitical concerns. The bulls started the week off with a victory but the bears floored them on Tuesday as the indexes fell 1.5% on average. The bulls made most of those losses back on Wednesday and Thursday which all led to Friday’s unemployment numbers which were fantastic.

Although there was a slight disappointment for a higher print for additional jobs, the market held up well and was basically flat until oil became a concern. Oil popped to a high of $105, up $3, which worried the heck out or a lot of investors who ran for cover before the weekend. Wall Street seemed nervous on how much higher oil prices would affect the economic recovery but we were more interested in watching support which held like a champ.

In fact, we said the final hour of trading was going to be interesting and the bulls made a nice comeback to score a weekly win, believe it or not.

The Dow was down 178 points at one point but staged a furious comeback as time ran down to the closing bell. We liked the effort going into the weekend. The index hit a low of 12,079 before rebounding and finishing at 12,170, down 88 points. For the week, the blue-chips gained 39 points, 0.3%, and we loved the close above 12,100 which we were hoping for on Friday. Resistance is at 12,200 and 12,350 this week.

The S&P 500 fell 10 points and settled at 1,321 after trading to a low of 1,312. We were looking for 1,325 to hold and then 1,300 but the bulls got half of the losses back before the close. For the week, the index added a point, or 0.1%, and needs to clear 1,325 before it can make an assault on 1,350.

The Nasdaq finished Friday at 2,784 (down 14 points) but had the smallest losses of the Big 3 indexes. Tech traded to a low of 2,768 and had trouble with the 2,800 level last week but 2,750 held. There is additional support at 2,700 but we have targeted Nasdaq 3,000 on a break above 2,850. For the week, the Nasdaq advanced 3 points, or 0.1%.

It is important that we talk about the downside though a little further. The turmoil and unrest in the Middle East got a little more serious as those loyal to Libyan leader Moammar Qadhafi battled rebels throughout the weekend. Some of the battles are taking place in the oil-rich eastern region of the country and the rebels have vowed victory or death. It’s that simple, and it comes down to Qaddafi and how far he is willing to push the envelope against his own people and how long those loyal to him remain that way. It also comes down to money, which is being choked, but Qaddafi still has enough to pay renegades and order air strikes on the rebels.

We also have to worry about the upcoming demonstrations and chaos which could rock Saudi Arabia this week. A “day of rage” is scheduled to take place there on Friday. These geopolitical events could weigh on the market and if oil continues to push higher we may have seen the market highs for the first half of the year as this could play out for a few months. If it weren’t for higher oil and a possible civil war in Libya, we would be 100% confident the bulls could rally the Dow to 13,000 by the end of April. But that is not the case.

The economic news had been pouring in at an incredibly good pace and there is a chance that higher oil prices can be absorbed by consumers who have paid off debt and saved for the last two years. However, right now there is an inverse relationship going on between the market and oil and it doesn’t appear like this is going to change anytime soon unless Qaddafi steps down.

The bottom line is watch Dow 12,000 and S&P 1,300. If these levels crack and the indexes close below these levels, then the bull market could be turning into a bear market. The good news is we love playing the downside and you will too. Remember, you can make just as much money on put options (bearish) as you can call options (bullish) so be prepared because it will be an easy read.

Despite the chaos, futures are slightly higher this morning despite oil adding another $2. Dow futures are higher by 14 points to 12,168 while the S&P 500 futures are up a half-point to 1,320. The Nasdaq 100 futures are showing a 7 point pop and are at 2,367.

Tags: best option trader, best trading signals, call options, chicken trade, Covered Calls, financial options advice, momentum options, Momentum stocks, option quotes, option signals, Option Trades, option trading, options broker, options mentoring, options newsletter, options prices, put options, stock broker, stock price, stock quotes, strangle option trade, winning option trades
Posted in Market Analysis, Market Commentary | Comments Off

« Older Entries

Start 2012 with the BEST options newsletter on the internet. With 5 triple-digit option trade winners in the books, we couldn’t have asked for a better beginning for 2012. If you started with a $10,000 trading account, our option picks could have made you 150% in January. In other words, a $10,000 account would be worth nearly $25,280 as we have gone 18-1. Our Weekly Wrap is off to a 7-0 start for the year.

Here are some of our profitable recommendations: MSFT call options +124%, STX call options +100% in 2 weeks, 114% and 131% on 2 MGM call options trades in 3 weeks and 107% in AFL call options in 6 days. Some of our double-digit gains include +58% on WPRT calls, +80% on TSM and +38% on INT call options.

Over the past 4 years we are averaging a 70% 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.

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.”

Posts Tagged ‘Covered Calls’

MomentumOptionsTrading.com Weekly Wrap for 12/18/11

Diamond Foods (DMND) is a Diamond in the Rough

MomentumOptionsTrading.com Weekly Wrap NEW TRADE for 9/13/11

Western Digital (WDC) Gets Busy on M&A

Oil Pushes $107, Futures Slightly Higher