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Monday, August 13th, 2012
12:35pm (EST)
Futures were showing a weak start for Wall Street last night but had improved before the opening bell this morning after Japan’s Gross Domestic Product (GDP) numbers came in worse-than-expected. The country’s GDP for the second quarter was 1.4% which was half the growth of the 2.7% figure economists had predicted. Even worse, this is way down from the 5.5% growth posted from the first quarter.
Europe was relatively quiet over the weekend and Italy is trying to raise 8 billion euros (nearly $10 billion) today after selling 12-month Treasury bills. The auction went well as demand was strong but Italy’s borrowing costs are edging up again.
The indexes opened lower but the Nasdaq was able to sniff positive territory before heading south to join the Dow and S&P. The bears had ruled Monday’s for 2+ months up until last week and looked determined to hold resistance, at least for today.
Some of our current trades are getting nice pops, including a couple from our Weekly Wrap. We offered a 6-month deal on the publication over the weekend and demand was strong. Thank You.
The publication has profiled some incredible stocks over the years, including a few 10-baggers. We were probably the only newsletter who recommended Dendreon (DNDN, $4.49, down $0.14) back in 2009 at $4 after saying the FDA would approve their prostate cancer drug, Provenge. Shares zoomed to over $50 in 2010 and when they fell below $40 last year, we said to get out.
We also profiled Imax (IMAX, $20.44, down $0.64) when shares were at $3 and before 3D became big. We said the flick Avatar would change the movie industry back in 2008 and a few years later, shares of Imax were pushing $20 after the movie made its debut in 2009. By 2011, Imax had pushed $30 and we said to get out as we saw the momentum fading.
We have profiled Vivus (VVUS, $21.74, up $0.14) and Arena Pharmaceuticals (ARNA, $7.21, down $0.06) when shares were under $5 and $2, respectively, and we said both companies had a good shot at getting their obesity drugs approved. We also have been saying Vivus has the stronger pipeline and shares could still double from current levels.
We now have another stock we are recommending for our Weekly Wrap that currently trades for under $4. Shares have traded as high as $7 over the past 52-weeks and we started coverage of the stock back in February.
Shares fell to a low of $2.20 in July but now some investors are starting to find out about their story. The stock closed at $3.10 on Friday on 10 times normal volume and insiders have been buying the stock by the boatloads.
This small-cap stock has a market cap of just $28 million but they are growing their business and you will be hearing their name in the next year or two as the company rolls out its expansion plans.
At current levels, if it reaches its prior 52-week high, it would be a 100% return. If shares move to $10+ over the next 12-24 months, you could make 200% or 300% if all goes well. The stock is up another 18% to $3.65, up $0.55, and has reached a high of $3.94 today.
The main reason we started the Weekly Wrap is so that we could still teach investors options but also in a safer way. Imax and Dendreon have options that trade but this current recommendation doesn’t.
In the future, shares could if they maintain a level above $5. However, we aren’t worried about selling options against this stock to lower our cost basis because it is a company we want to hold on to for a few years. Regardless of market conditions, this will be an exciting stock to own and we cannot tell you enough how much we believe they have a good story to tell.
Our promotion ended Sunday night for the 6-month Weekly Wrap but we are still getting a ton of emails asking if the offer is still good. Due to demand, we have decided to extend the coupon off for another 24 hours and we said it would be our last deal before our December yearly specials.
The coupon code to use to get the Weekly Wrap 6-month Special Price for $299:
2CFB6D1761
Go here to subscribe:
Please copy and paste the code and pick the correct membership on our subscription page to get the deal. We will pull the plug on the offer on Tuesday at midnight. The cost of the newsletter is under $50 a month and is over a 50% savings. This one recommendation will easily pay for the cost of the newsletter.
Once you sign-up, please go to the Weekly Wrap Premium section to get our latest gem.
We have more to talk about in or Members Area so we have to roll but we do hope you hit us up on this offer.
As we head to press, the Dow is down 86 points to 13,121 while the S&P 500 is lower by 7 points to 1,398. The Nasdaq is showing a decline of 15 points to 3,005 but has dipped below 3K. Subscribers, check the Members Area for the updates.
Tags: covered calls option trading, dndn, Imax
Posted in Earnings, Market Analysis | Comments Off
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.
Tags: covered call trading, dndn, RLD, VIX
Posted in Covered Calls, Earnings, Market Analysis, VIX | Comments Off
Tuesday, April 10th, 2012
9:00am (EST)
The market finished Monday’s session pretty much where we figured the dust would settle as the major indexes fell 1%, on average. Although there was some backfilling, or a bounce off the lows, the bulls were unable to hold support as the selling pressure lasted throughout the session…
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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 61-13 as of early April with 12 triple-digit winners and another 9 trades that returned 75% or more, on average.
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. In other words, these solid gains could have turned a $10,000 trading account into $49,000 for a 390% return using our recommendations.
Our Weekly Wrap Covered Call Portfolio is 17-0 for 2012. We were 16-0 in 2011. Even better, we could add another 3-4 winners in April! Some of our winners 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: COF, dndn, MGM, stock options trading advisors
Posted in Market Analysis, Market Commentary | Comments Off
Friday, February 17th, 2012
1:00pm (EST)
The market is mixed as we head into the second half of trading and a 3-day weekend.
The major indexes have trudged higher for much of the day although Tech is slipping following yesterday’s big run.
For those of you who subscribe to our Weekly Wrap, today is payday on 4 of our covered call trades. MGM Resorts (MGM, $14.80, up $0.06) will give us a 22% return after the close while Darling International (DAR, $15.85, up $0.07) will chip in with a 20% advance. Zynga (ZNGA, $12.67, up $0.62) will make us 13% and TiVo (TIVO, $12.07, up $0.01) will return 5%. Zynga also made our subscribers 153% after we closed our call option trade this week from late January.
The closed trades will put our Weekly Wrap portfolio at 12-0 for the year and 28-0 since the start of 2011. Again, 28 winners, no losers. Even better, in March we could close up to 11 more winning trades for double-digits returns.
The important part of double-digit winners is this. If you can make 20% on just 5 trades, you double your money. Think about that folks.
We created the Weekly Wrap to take some of the stress away from trading Daily options. While our Daily option trades target triple-digit returns, the Weekly Wrap covered call trades are designed for those of you who have smaller accounts and want to play options. This is the coach potato way of learning to trade and reading charts and we have not lost one minute of sleep since we started this publication.
For the Weekly Wrap we focus on covered call trading on stocks under $20. Most of the time our hidden gems are on stocks in the $5-$15 range which makes entry points for trading and writing covered calls less than $1,000.
Our point is that you can build a solid portfolio with unloved, undiscovered and momentum stocks by selling call options against the stock you own. We also focus on stocks with good fundamentals that are stuck in a trading range. Think of the options you write as monthly dividends.
We are now 12-0 for our Weekly Wrap and some of our other high double-digit winners this year include Clean Energy Fuels (CLNE, $17.13, up $0.62) which made 27%, Dendreon (DNDN, $14.45, down $0.04) racked up an 18% pop, and our first MGM Resorts trade that got called away in January made 19%. With the two 20+% winners we are closing today, these five trades alone would have doubled your money.
We told you back in October the next 6 months were going to be one of the best times we have seen in awhile to trade the upside and there will be opportunities to play the continued momentum or a pullback. Either way, we have you covered.
The Dow is up 27 points to 12,931 while the S&P is higher by 2 points to 1,360. The Nasdaq is down a dozen points to 2,948.
Subscribers, check the Members Area for the last minute updates.
Our next issue of the Weekly Wrap will be out Monday night as the market will be taking the day off for President’s Day. Our next issue of the Daily will be out on Tuesday morning. The Weekly Wrap is 28-0 since we started the newsletter just over a year ago. Our Daily publication is on fire as we have gone 25-2 to start the year.
Until then, have a great weekend everyone!
Tags: covered call trading, DAR, dndn, MGM
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off
Wednesday, February 15th, 2012
12:30pm (EST)
We have 2 NEW TRADES we are releasing right now as we look to continue our hot streak. Subscribers, check the Members Area for the updates!
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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 great 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 which is 24-2 over the first 7 weeks of the year. Our list of winners include 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 strides for double-digit returns on a monthly basis and is 7-0 for 2012 and could add up to 5 more winners this week. We were 16-0 in 2011. Even better, we could add another 10 winners in March which would bring our Track Record to 38-0! Some of our winners include 27% on CLNE, 17% on VVUS, 19% on MGM, 18% on DNDN, and 20% on DAR.
Tags: dndn, STX, VVUS
Posted in Trade Update | Comments Off
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Bulls Looking to Rebound
Tuesday, April 10th, 2012
9:00am (EST)
The market finished Monday’s session pretty much where we figured the dust would settle as the major indexes fell 1%, on average. Although there was some backfilling, or a bounce off the lows, the bulls were unable to hold support as the selling pressure lasted throughout the session…
***********************
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 61-13 as of early April with 12 triple-digit winners and another 9 trades that returned 75% or more, on average.
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. In other words, these solid gains could have turned a $10,000 trading account into $49,000 for a 390% return using our recommendations.
Our Weekly Wrap Covered Call Portfolio is 17-0 for 2012. We were 16-0 in 2011. Even better, we could add another 3-4 winners in April! Some of our winners 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: COF, dndn, MGM, stock options trading advisors
Posted in Market Analysis, Market Commentary | Comments Off