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Market Slightly Higher At Halftime

Tuesday, August 31st, 2010

1:05pm (EST)

There has been a flurry of economic news this morning that has moved the market and the bears were able to push the major indexes lower at the open. However, the bulls got some “better-than-expected” news and have fought back to take a slight edge heading into second half of action.

Here were the numbers:

The Consumer Confidence index for August came in at 53.5 versus estimates for 50.5, Chicago PMI for August was 56.7 compared to expectations for 56.0 and S&P Case-Shiller for June was up 1%, month over month.

The other big event to watch for today will be the release of the FOMC minutes at 2pm (EST).

And now for the good stuff…

fcx083110b

This morning we profiled a strangle option trade and little did we know we would be doing an update 4 hours later. We mentioned shares of Freeport-McMoRan (FCX, $72.54, up $2.18) are capable of big moves and we targeted a quick trade to show you how you can use them in volatile markets. The stock opened at $69.87 this morning and this is what the options have done:

The September 65 puts (FCX100918P00065000, $0.50, down $0.31) opened at 87 cents while the September 75 calls (FCX100918C00075000, $1.51, up $0.56) opened at 80 cents. Your total cost of the trade was $1.67 or $1,670 for 10 call options and 10 put options.

Shares of Freeport are only up 3% but as you can see, the call options are up 60% and have traded as high as $1.72. In other words, they more than doubled.

This was the PERFECT scenario as you could have quickly sold the calls at $1.60+ by setting a limit order to close the calls when they hit this price in your brokerage account or by our Trade Alerts if this had been an official trade. This would have put $1,600 back into your trading account in less than 4 hours.

Now, here is the beauty of this trade folks. You would still own the September 65 puts which are at 50 cents so you could close them right now and put another $500 into your account. This would give you a net of $2,100, or a 26% return…in 4 hours.

You could also roll the dice and play the puts for the rest of the week. You could also close half of the puts and let a little ride. They would do well if shares stalled and retreated back below $70 but we would pull a Steve Miller by taking the money and running.

We are going to start covering more of these trades in our Members Area but we aren’t going to go overboard. We may, from time-to-time, do a strangle option trade or straddle option trade because it is our job to make you money but a lot of investors have trouble understanding these trades or putting them on.

As we head to press, the Dow up 26 points to 10,035 while the S&P is up a couple of points to 1,050. The Nasdaq is down 3 points to 2,144.

There is a lot to cover in our Members Area today so let’s get on it. We will be back in the morning with another full update.

Tags: chicken trades, FCX, option picks, stock options trading, strangle option trades
Posted in Market Analysis, Market Commentary, strangle option trades | Comments Off

Futures Pointing Towards Lower Start

Tuesday, August 31st, 2010

9:05am (EST)

The bulls took another two steps backwards on Monday after failing to capitalize on Friday’s one step forward. We knew last week at some point there would be a “dead cat” bounce or a “short covering” rally but we didn’t expect one before the weekend. However, we had a feeling it would be hard for the bulls to carry forward any meaningful rally given the current trend.

The futures were pointing towards a slightly lower open yesterday but the selling pressure intensified late into the session which took the market to new lows. Volume was extremely light; in fact, it was one of the lowest volume days of the year as Wall Street takes the last of its summer vacations. This is usually a popular week to hit the beach so we are expecting much of the same with an increase in volatility. Hurricane Earl could also be a factor this week.

As a result, the Dow dropped 141 points, or 1.4%, to finish at 10,009. The bulls didn’t give back all of Friday’s gains and they still managed to hold the 10,000 level but it wasn’t pretty as the Dow got slammed in the last 15 minutes of trading. The bears will try to push for 9,800 and then 9,500 while the bulls try to hold support.

The S&P 500 fell 16 points, or 1.5%, and settled at 1,048. The index closed below our 1,050 target and will likely trade down to 1,020 if 1,040 is taken out. From there, we could eventually see the S&P at 950 by October.

The Nasdaq tanked 34 points, or 1.6%, to finish at 2,119. Tech remains the most volatile and support will come in at 2,100 and then 2,050 but we think a test to 1,900 could be on the way.

There is a ton of economic news due out over the next few days, including Friday’s monthly employment report, and the market will likely react violently to any surprisingly bad news.

gs083110

Financial stocks continue to look weak and we have been saying the bulls cannot have a sustained rally without them. Wells Fargo (WFC, $23.25, down $0.75) is in a nosedive, Bank of America (BAC, $12.32, down $0.32) hit a fresh 52-week low and Goldman Sachs (GS, $136.66, down $2.74) is breaking key support levels.

Although some names in the sector are starting to look like real bargains, there is probably some more exposure to the downside before the group turns around. We are looking at some attractive LEAPs on a few Banking stocks but we think there is a chance we can get them cheaper. You can buy call options on stocks as far as a year or two out and we will be covering more about LEAPs in the Weekly Wrap in the future.

We wanted to take some time to talk about a strangle option trade this morning that we were going to cover over the weekend but didn’t. The stock we were going to cover is a good candidate because we are expecting shares to move at least 10% or more over the next few weeks.

To find an attractive candidate, you need volatility and Freeport-McMoRan (FCX, $70.36, down $0.84) fits the bill. The strangle option trade can be used for a stock that you feel will be making a big move but you are unsure of the direction.

fcx083110

If you look at a chart for FCX, you will notice shares are easily capable of moving $10 in a week and that is the action we are looking for. The company is mainly a Copper ETF but has some exposure to gold and although we are in a downtrend, we would use call options to protect us if the stock moved higher.

September options expiration is only 18 days away, so you could use the September 65 puts (FCX100918P00065000, $0.81, up $0.08) and the September 75 calls (FCX100918C00075000, $0.95, down $0.25) as a way to play a big move in the stock. If we let this trade run down to the wire we would need shares of FCX to be under $64 or over $76 for us to make a decent return. The goal would be to make enough on one side of the trade to offset the other side of the trade.

If the stock makes a quick 5% move either way, the calls or puts would double and hopefully give you an overall gain of 10% or more. Then you would have the other side of the trade to wait for a rebound and possibly get out of the other side with a profit. That is not often the case but it does happen.

These trades are also known as “chicken trades” or you can use the 70 strike price and make the trade a “straddle” option trade. This trade is not an official recommendation because we don’t like the risk/ reward setup for this one but we will track it to show you why it did work or didn’t. This trade is for educational purposes only.

As we head to press, Dow futures are lower by 35 points to 9,944 while the S&P 500 futures are down 4 points to 1,040. The Nasdaq futures are off by 9 points to 1,760.

We do have current trades that are official recommendations and they are inside our Members Area. Many of them made some nice gains yesterday as we remain on the short side and are using puts to play the current downtrend. Our Watch List also has a couple of earnings trades we are watching and we may be pulling the trigger on one or two of them if we see an opportunity. Subscribers, check for the updates.

Tags: bac, chicken trade, FCX, option picks, stock options trading, wfc
Posted in Company Commentary, Market Analysis, Market Commentary, strangle option trades | Comments Off

MomentumOptionsTrading.com Weekly Wrap for 8/15/10

Sunday, August 15th, 2010

10:20pm (EST)

1. Market Summary

2. Is Research In Motion (RIMM) a Risk or Reward?

3. A Closer Look at Copper

4. Freeport McMoRan (FCX) Finds Range

5. Week Ahead

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1. Market Summary

The bears made it four in-a-row to close out an impressive week on Friday although the action was a little lackluster ahead of the weekend. There were a few notable earnings announcements and some mixed economic news but the headlines favored the bears.

One sector that continues to feel the pinch is Retail. There are a few standouts but many retailers are struggling and lowering their guidance going forward. The Commerce Department reported July retail sales were up 0.4% but only because consumers were pumping and paying higher gas prices. Yes, it was the first gain in three months but people are saving more and we doubt back-to-school sales are going to be as robust as some are hoping for.

J.C. Penny (JCP, $19.82, down $0.98) fell nearly 5% on Friday and set a new 52-week low after announcing earnings. Although the company turned a profit for the quarter, they offered cautious guidance going forward and shares got slammed. Nordstrom (JWN, $31.05, down $2.39) reported Thursday night after the close and pretty much said the same thing. Its shares were off 7%.

As far as the major indexes, they ended the week with losses of 3%-5%.

The Dow slipped 16 points to close at 10,303. For the week, the blue-chip index fell 350 points, or 3.3%, and had its 3-week winning streak snapped. The index will face resistance at 10,400-10,600 but will likely test 10,200 and maybe 10,000 this week.

The S&P 500 shed 4 points and closed at 1,079. The weekly loss was 42 points, or 3.8%, and the index will have trouble with the 1,100 level if there is a bounce this week. However, the S&P has broken down below its 50 and 200-day moving averages and support comes in at 1,070, but, 1,050 appears to be the next stop.

The Nasdaq matched the Dow’s decline point wise, down 16, but continues to get hit the hardest and settled at 2,173. The index dropped 115 points for the five sessions, or 5%, and is breaking down like a rented mule. There is support at 2,150 and then 2,050 with resistance at 2,200.

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2. Is Research In Motion a Risk or Reward?

Research In Motion (RIMM, $53.40, down $0.77) is the Canadian maker of the Blackberry smartphone and the encryption technology behind it. The company is projected to have revenues of nearly $19 billion for 2010, practically all of it related to the Blackberry, and is now playing catch-up in the sector.

The stock’s has a 52 week range of $47.42-$88.08 and its next quarterly update will come in mid-September. In June, RIMM reported a profit of $769 million, or $1.38 a share, versus $643 million, or $1.12, in the year earlier quarter. Wall Street had expected of $1.35 a share. Revenue came in a little light at $4.2 billion, versus estimates of $4.4 billion, but they added 4.9 million new subscribers in the quarter, a 60% year-over-year increase.

Still, Wall Street and investors didn’t care as the stock dropped $6.35 the next day, or 10%, from $58.58 to $52.23. If you take a look at a 2-year chart, you will shares have fallen from a high of $144 since June 2008. At current levels, shares are trading at less than 10x next year’s earnings so does that make them cheap?

Maybe, but the two words RIMM fears the most are Android and iPhone.

These two operating systems have been taking market share away from Blackberry in the high end of the market, relegating Blackberry to selling lower margin, low-end phones up until the recent release of its own Torch.

The Android Operating System is Google’s (GOOG, $486.35, down $5.66) and has became the number one OS for mobile phones in the second quarter, unseating the Blackberry OS after three years. Apple’s (AAPL, $249.10, down $2.69) smartphone OS is third, but first in the U.S. and Europe, the two biggest markets.

In the second quarter for 2010, the overall smartphone market grew 65%. Both Nokia and RIMM shipped only 40% more units while Apple shipped 60% more and the Android grew an astounding 900%. Worldwide overall market share breaks down currently with Nokia owning 38%, RIMM with 18%, Apple at 13%, and Android at about 17%, up from 2% a year ago. At one point, the Blackberry had a 65% overall worldwide market share in smartphones.

The reason RIMM is losing this battle comes down to applications and design. The Blackberry has always been a very utilitarian product designed by engineers and meant to handle email and not much else. As smartphones have become more main stream, consumers have demanded better ergonomic design, greater flexibility, and more applications. Blackberry has missed out on all three, particularly applications, where they are way behind thanks to the closed nature of their OS.

The company is trying to revive their franchise with the new Blackberry 9800 Torch and a possible “BlackPad” device. The Torch is a touch screen Blackberry with a slide out keyboard and the new OS.6 Blackberry operating system. Sales just started last week so we should have some data fairly soon. Early indications are that while it is a great upgrade for those who have a Blackberry, it is still not very user friendly, it lacks the “cool” factor of an iPhone, and they still have the issue of very few applications or “apps”.

Their other rumored product is a tablet device, believed to be called the BlackPad since they recently registered the domain name, and it is scheduled for release in November. Tablets have been around for years, and many companies already have them out, but it is only the iPad that has really taken off. We seriously doubt the engineers at RIMM’s headquarters can produce a device that will compete with some of the other tablets already on the market, let alone the iPad.

The most recent issue with the stock has been the headlines of Saudi Arabia, the UAE, and India threatening to block sales unless RIMM lets them in on their encryption. This rock solid encryption has been a selling point in the past, but these governments don’t like the fact that they can’t read their citizens emails when they use a Blackberry. RIMM has a deadline until the end of August to satisfy India’s demands, which we believe they will almost assuredly do since locking themselves out of the second largest potential market in the world would not be a good thing.

Long term, it seems to only hasten the demise of the Blackberry as the one key selling point RIMM had over other systems was their security. Corporate executives that favored the Blackberry are now jumping ship, and their employees are clamoring for an Android or iPhone as well.

The bulls will argue the stock is cheap because the company is still growing revenues in a rapidly exploding smartphone market. With 4.6 billion phones worldwide versus about 1 billion computers, the growth potential is staggering since only about 100 million phones are smartphones now.

This means there is room for multiple players in the sector and the Blackberry will still be around. With a P/E of around 10x next year’s earnings, there is an argument that RIMM’s shares are inexpensive relative to the projected growth we have mentioned. However, we think the near-term direction of the stock is down and if its 52-week low is taken out, look for shares to test the lower $40’s.

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3. A Closer Look at Copper

Copper ($3.25/lb) is one of the most widely used metals on the planet. Virtually anything that uses electricity in some way, from TV’s to cell phones to cars to houses needs copper. If you could only use two indicators to judge the health of the world’s economy, the price of copper and the Baltic Dry Freight Index would be two good choices. Put very simply, the rising price of copper means growth in the global economy since it is used in so many things, and conversely a falling price can foreshadow a slowing global economy.

Unlike with gold, there is no ETF, yet, that tracks the price of copper (for gold it is the GLD). The two stocks most levered to the price of copper are Freeport McMoRan (FCX, $70.07, down $0.32) and Southern Copper (SCCO, $29.28, down $0.31) which we mentioned in our article below. These stocks can be used to play an option strategy revolving around the price of copper based on where you think the metal is headed.

The price of copper is denominated in dollars like most commodities so its price can be influenced by the rise and fall of the dollar relative to other currencies. A weakening dollar means all commodity prices, including copper, should rise, and vice versa for a strengthening dollar.

Copper has traded in a 52 week range of $2.68/lb-$3.60/lb. Over the last month it has moved from $2.93/lb to $3.25/lb with a high of $3.38/lb for that time period occurring in early August. You can see we are off of the recent lows, but also down from a recent high. A break in either direction from here is fairly significant since we are right at a key inflection point and is definitely worth watching.

A breakdown under $3.18/lb probably indicates waning demand and would bolster the case for a double dip recession in the near future. A move to the upside to test the recent $3.38 high would seem to indicate that global demand is picking up again.

World supply right now is pretty tight, with copper inventories having declined for 5 straight months, the most since 2007. This really adds fuel to any downside move being a harbinger of slower world growth since a declining price in the face of declining inventories means a drastically declining end demand. The next few weeks should be very pivotal in telling us where the price of copper is headed and also where global growth may be headed.

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4. Freeport McMoRan Finds Range

Freeport McMoRan Copper & Gold (FCX, $70.07, down $.32) is a global miner with proven reserves of 104 billion pounds of copper, 37 million ounces of gold, 2.5 billion pounds of molybdenum, 270 million ounces of silver and nearly one billion pounds of cobalt. The company recently reported earnings of $1.49 a share on $3.9 billion in revenues, easily blowing away analyst estimates of $1.34 a share and $3.7 billion in revenue. The company is projected to do $17 billion dollars in revenue for 2010, and it is trading at 9.4x this year’s earnings.

Freeport is interesting company on several levels. The price and direction of copper as the metal make up 75% of its revenue. Copper is usually a leading indicator of increased economic activity, so for those who believe copper can go higher, this is one of the best ways to play the price of copper. Another is Southern Copper (SCCO, $29.28, down $.31).

Gold is another aspect of Freeport that is intriguing. We did a big write-up a few weeks ago here in the Weekly Wrap and the yellow metal is historically strong in October. Rising gold prices can lift the stock for this company at times, although we highlight several more pure gold plays in our Watch List from time to time.

M&A’s (mergers and acquisitions) are big in this sector and many believe Freeport could be in the mix in acquiring some of their smaller competitors. Kinross Gold (KGC, $15.16, down $0.29) recent purchase of Red Back Mining for $7 billion was a 20% premium over the share price and that took the value of gold deals to $32 billion this year, according to data compiled by Bloomberg. That’s more than twice last year’s total for the industry.

The bull case for this stock is real compelling. With copper up 10% off its low for the year, and gold possibly going higher as the Fed monetizes the debt, this company is in the sweet spot. If you believe that gold can go a to $1,300/ounce and copper can go to $3.50/lb (currently at $1,214/ ounce and $3.25/ pound, respectively) then this stock could easily move back to the $80-$90 range.

The bear case rests on a double dip recession and the price of copper and gold going down.

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5. Week Ahead

Here is a look at the companies reporting earnings this week:

MONDAY – Agilent Technologies (A, $27.35, down $0.18), InterOil Corporation (IOC, $64.82, down $0.55), eLong (LONG, $13.39, down $0.08), Lowe’s Companies (LOW, $19.59, down $0.15), Perfect World (PWRD, $24.86, up $0.05) and Urban Outfitters (URBN, $30.90, down $0.71).

TUESDAY – Analog Devices (ADI, $28.07, down $0.16), Abercrombie & Fitch (ANF, $37.66, up $0.01), CACI International (CACI, $41.45, down $1.09), Elbit Systems (ESLT, $52.1, up $0.11), G&K Services (GKSR, $21.60, down $0.44), Jack Henry & Associates (JKHY, $24.18, down $0.05), TJX Companies (TJX, $40.90, down $0.84), VanceInfo Technologies Inc. (VIT, $26.40, up $0.23) and Wal-Mart Stores (WMT, $50.40, down $0.03).

WEDNESDAY – Applied Materials (AMAT, $11.17, up $0.01), BJ’s Wholesale Club (BJ, $42.90, down $0.33), Citi Trends (CTRN, $27.64, down $0.72), Deere (DE, $64.85, down $0.68), Duoyuan Global Water (DGW, $21.83, up $0.93), Eaton Vance (EV, $28.92, down $0.05), Flexsteel Industries (FLXS, $11.65, down $0.08), Gymboree (GYMB, $40.56, down $1.04), Limited Brands (LTD, $24.89, down $0.40), NetApp (NTAP, $38.14, up $0.56), Netease.com (NTES, $37.26, up $0.08), Open Text (OTEX, $38, up $0.07), PetSmart (PETM, $29.61, down $0.11), Synopsys (SNPS, $21.63, up $0.03) and Target (TGT, $50.81, down $1.00).

THURSDAY – Aeropostale (ARO, $23.11, down $0.66), Cato (CATO, $22.27, down $0.70), Salesforce.com (CRM, $97.24, up $0.29), Dell (DELL, $12.01, up $0.02), Delta Apparel (DLA, $13.06, down $0.25), Dollar Tree (DLTR, $42.32, down $0.20), Foot Locker (FL, $12.51, down $0.01), Flowers Foods (FLO, $24, up $0.12), GameStop (GME, $19.57, down $0.14), Gap (GPS, $17.67, down $0.28), Hewlett-Packard (HPQ, $40.45, up $0.31), Lancaster Colony (LANC, $48.79, down $0.22), Marvell Technology Group (MRVL, $14.51, down $0.15), Nordson (NDSN, $63.91, down $0.26), Ross Stores (ROST, $49.03, down $0.59), School Specialty (SCHS, $17.1, down $0.38), ScanSource (SCSC, $25.03, down $0.40), Staples (SPLS, $19.11, down $0.21), Stage Stores (SSI, $10.11, down $0.49), Standex International (SXI, $25.32, down $1.10), Tech Data (TECD, $36.75, down $0.79), Toro (TTC, $49.08, down $0.49) and Yingli Green Energy Holding (YGE, $10.57, down $0.12).

FRIDAY – AnnTaylor Stores (ANN, $15.20, down $0.66), Hibbett Sports (HIBB, $26.18, down $0.04), Hormel Foods (HRL, $42.90, up $0.21), J.M. Smucker Company (SJM, $58.15, up $0.22) and Kirkland’s (KIRK, $16.80, down $0.31).

We will be back Monday morning at 9am with a fresh update on the market and all of our current trades.

Tags: call options, FCX, momentum options trading, option picks, options alerts, put options, RIMM, stock options trading
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off

Hit Me With Your Best Shot

Friday, October 2nd, 2009

10:40am (EST)

Fire away, hey-hey…

The bulls invited the bears into the ring and immediately took the bears best shot. The unemployment report came in as expected, 9.8%, but the job loss of 263,000 was way more than the 180,000 Wall Street had expected.

I told you this morning I was hearing whispers for a loss of a 250,000 and we were expecting some downside. When the report was released at 8:30am (EST) the futures sank even further. Dow futures were down about 30 and zoomed to 100 once word hit the Street.

However, the bulls took the bears’ best left hooks on the chin and are still standing. The Dow opened with a 70 point loss but has nearly clawed (no pun intended) its way back to positive territory. The Dow is only down 2 points and is currently trading at 9,506. The Nasdaq has just turned positive as is up 5 points to 2,062. The S&P is flat at 1,029.

The action isn’t what we had planned this morning and part of that could because of a weaker dollar. If the dollar would have rallied then we were looking for the commodity stocks to take a hit. They did, but the weaker dollar kept the plunge to a minimum.

I had profiled a Freeport McMoRan (FCX, $64.98, down $0.42) trade this morning in the Members Area and the put options we were looking at opened higher than our limit price. We also didn’t get the sell-off we had planned for so we did not take the trade. The stock hit a low of $63 but it wouldn’t surprise me to see this one rebound along with the market.

I also talked about opening a Research In Motion (RIMM, $66.06, down $1.10) position if the market opened HIGHER but that was never in the cards once we got the Jobs Report. However, I did say the stock is right at support which is $66-$67 so those call options may get interesting next week. We don’t need to rush out and buy them today but we will keep them on the Watch List and may look at them again next week.

Other than that, our Abercrombie & Fitch (ANF, $31.21, down $0.49) trade continues to gain momentum and appears safe to hold over the weekend. At current levels, it has returned 30%.

We planned for either a continued sell-off or a huge rally today and it looks as though this battle is just getting started. The thing to watch for is how we go into the closing bell today. It’s hard to say where the market ends the session because the bulls could end up stealing today’s round.

If they do, it would be bullish heading into next week’s earnings.

I wanted to get this out before the 1pm update and this is the 1pm update. With so much going on this morning I wanted to make sure everybody was following the game plan. No need to open new positions heading into the weekend and we will sit on what we got.

I will be looking at possible trades for next week the rest of the day to see if there is something there and the last hour of trading will be interesting to watch.

I’ll be back Sunday night, more likely, Monday morning with the weekly update and the playbook as we head into earnings season. Alcoa (AA, $12.80, down $0.11) kicks things off on Wednesday.

Rick@MomentumOptionsTrading.com

Tags: AA, Abercrombie & Fitch, Alcoa, anf, FCX, Freeport-McMoRan, options picks, Research in Motion, RIMM
Posted in Hot Stocks | Comments Off

GE, Baidu.com Breaking Out

Wednesday, September 16th, 2009

12:30pm (EST)

General Electric (GE, $16.68, up $0.68) is rolling this week. The stock opened Mondayat $14.55 and closed yesterday at $16. Today’s 4% pop is shows the stock’s momentum after passing hitting the $16 level and shares look poised to run to $17 where there is resistance. Volume is thru the roof as 113 million shares have traded thus far.

Lottery players are all over the GE September 16 calls (GEWIQ, $0.75, up $0.49) as they are up nearly 200% for the day. They opened at 40 cents. We went to Apple’s (AAPL, $182.26, up $7.10) October party instead and the option trade I profiled at 11am is up 50% folks! If you got in at 85 cents, lock down some profits as the call options are now at $1.50!

Yes,

Baidu.com (BIDU, $402.80, up $5.27) continues to set new 52-week highs. The stock has made an $80 move since the beginning of the month. Goldman Sachs (GS, $178.33, up $1.67) is the latest cheerleader after making some chippy comments on the company this week and setting a price target of $455. Baidu’s CEO has been quoted as saying he sees users leaving Yahoo Japan to come to Baidu over the next few years.

That’s it for now…Freeport McMoRan (FCX, $72.77, up $1.43) and Imax (IMAX, $10.10, up $0.28) are also putting in good days for us. I may try and do an 11pm update tonight but I’ve got a ton of research I’m doing. If not, I’ll see everyone in the morning by 9am (EST).

Rick@MomentumOptionsTrading.com

Tags: AAPL, Apple, Baidu.com, BIDU, FCX, Freeport-McMoRan, GE, General Electric, GS, Imax, options picks, options trading strategies
Posted in Apple, Company Commentary, Hot Stocks, Option Trades | Comments Off

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3/18/11
Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

2/3/12
Hi Rick,

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

Hi Rick,

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

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