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Friday, January 20th, 2012
1:10pm (EST)
Everybody’s working for the weekend…
The market is mixed as we head into the second half of trading but it’s been a good day of triple-digit profit taking and we have more to come after the close when the January options officially expire.
For our Weekly Wrap subscribers, it means we could be looking at a bevy of double-digit gains as many of the stocks we told you to load up on in November and December should get called away as they are trading above our option strike price.
We have 10 winning trades that could get “called-away” today on the stocks we cover in our Weekly Wrap. The gains range from 18% on Dendreon (DNDN, $13.49, down $0.27), 27% on Clean Energy Fuels (CLNE, $13.96, up $0.13), 8% on Ford (F, $12.55, down $0.06), 19% on MGM Resorts (MGM, $12.69, down $0.12) and 17% on Vivus (VVUS, $12.13, down $0.23) just to name a few.
We have been money in picking consistent winners which has allowed us to go 16-0 in 2011 and possibly 10-0 to start 2012.
As far as yesterday’s Google (GOOG, $587.39, down $52.18) strangle option trade, here is what we said yesterday:
“A 10% move in Google would equate to a 63-point move in the stock and we could see that on an earnings miss to the downside. However, the upside may not be quite as huge if it is not a blowout quarter and could only be 5% or less which is still $30 but is it enough to create a possible strangle option trade?
The Google January 700 calls (GOOG120121C00700000, $1.10, down $0.20) and the January 575 puts (GOOG120121P00575000, $0.70, down $0.90) would cost $2 together and are a possibility but the stock would need to be at $702 or $573 for us to break even. At $704, or $571, the trade would double but again, the options expire tomorrow.
This is NOT an official option trade recommendation but we wanted to show you how strangle option trades work since we have a ton of new subscribers. The risk/ reward on this trade doesn’t look great and it may be better off to SELL these options but that is another strategy altogether and one we certainly don’t recommend on a $600+ stock.” (END)
Shares have traded to a low of $584 so far today and the January 575 puts (GOOG120121P00575000, $0.10, down $0.60) have opened at 79 cents and that was it as they will probably expire worthless. The Google January 700 calls (GOOG120121C00700000, $0.05, down $1.05) will expire worthless.
If we were playing “in-between” or “acey-deucey” we would have taken $2 out of the Google pot if we had sold these options, but again, it was way too much cash to put at risk if shares would have traded above $700 or below $575.
It’s also another reason why we rarely trade options on stocks over $100.
We have a lot to cover in our Members Area and we couldn’t have asked for a better week or month so far to start 2012. We have turned a $10,000 trading account into over $20,000 in 3 weeks and we have said 2012 is going to be a BIG year for us. We are 15-1 on closed trades for the year and you can request our track record by emailing us to see all of the trade details.
As we head to press, the Dow is up double-nickels (55 points) to 12,679 while the S&P is lower by 3 points to 1,311. The Nasdaq is down 7 points to 2,781.
We will be back Sunday night with the Weekly Wrap and more good news. We will also be providing an in-depth look at what this week’s rally has meant and where the market could be going. Until then, have a great weekend everyone!
Tags: CLNE, Dendreon options, dndn, F, GOOG, HGM
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off
Friday, January 20th, 2012
9:00am (EST)
The bulls rolled out the red carpet after the bell on Thursday as a number of companies were set to report earnings. Despite the high profile events, the market moved higher as Tech once again led the way.
The Dow gained 46 points, or 0.4%, to finish at 12,625. The blue-chips closed on their highs for the day which opens the door for a test up to 12,800 as the index ended above our near-term 12,600 target.
The S&P added a 6-pack, or 0.5%, to settle at 1,315. The index managed to stay in the green all day after testing the breakeven level shortly after the open. We said there could be fluff up to 1,325-1,350 on the close above 1,300 which would be nice for the bulls to hold going into the weekend.
The Nasdaq jumped 18 points, or 0.7%, and ended at 2,788. Tech made a run at our 2,800 target but fell short after kissing a high of 2,793.
Yesterday’s news is actually today’s headlines as we have a ton of stocks in play ahead of the open. Most noticeably, Google (GOOG, $639.57, up $6.66) shares are down a whopping 10% (like we predicted) after the company missed Wall Street’s estimates. It seems the gains on Thursday ($6.66) were a sign of bad things to come.
Google was down over $60 at one-point last night in extended trading and in pre-market action, shares are down $50 to $590.
Elsewhere in pre-market trading, Intel (INTC, $25.63, up $0.24) is up 2% after they beat estimates and offered in-line guidance for the current quarter. International Business Machines (IBM, $180.52, down $0.55) is trading higher to $185 despite missing analysts’ revenue targets but did up guidance going forward.
And finally, Microsoft (MSFT, $28.12, down $0.11) is pushing $29 after reporting a profit of $6.6 billion, or $0.78 a share, on revenue of $20.9 billion for the quarter. This was slightly below last year’s showing of $0.77 a share on sales of $19.95 billion for the quarter, but slightly ahead of the 76 cents the suit-and-ties had penciled in.
Shares of Microsoft are at $28.77, up $0.65, ahead of the bell. We currently have open trades on this name so look for possible Profit Alerts if we take action. We have a $35 price target on Microsoft by summertime but we want to take advantage of today’s possible pop to lock in profits on our February call options.
Futures are pointing towards a mixed open and look like this: Dow (-16), S&P (-3), Nasdaq (flat).
We also have some other current open trades that we may take action on this morning and we have raised the HARD STOPS for a few of them in case there is a pullback. With the weekend here, we may lock-in some triple-digit profits! Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: GOOG, IBM, INTC earnings, momentum options, MSFT
Posted in Earnings, Google, Market Commentary, Trade Update, Yahoo / Microsoft | Comments Off
Wednesday, January 18th, 2012
9:00am (EST)
The bulls got off to a good start on Tuesday following Monday’s holiday as overnight and morning futures were up significantly before the European markets opened for trading. The major averages surged 1% out of the gate but finished the day giving back half the highs and then some after pushing another layer of resistance. Still, the surge higher put the momentum back on the bulls side following Friday’s setback but the close yesterday wasn’t fancy and didn’t excite us.
The Dow added 60 points, or 0.5%, to finish at 12,482. The blue-chips reached a high of 12,573 as they managed to stay in positive territory throughout the session. The move near resistance at 12,600 clears the way for a run up to 12,800-12,875 with a shot at 13,000 but that might be asking a bit much before we get a pullback. Short-term support is at 12,350 followed by 12,200.
The S&P 500 advanced 5 points, or 0.4%, to close at 1,294. The index reached a peak of 1,303 before fading in the second half and dipping to a low of 1,290. We said a close above 1,300 could lead to some fluff up to 1,325-1,350 while support is at 1,275 with 1,250 serving as backup.
The Nasdaq popped 17 points higher, or 0.6%, to settle at 2,728. Tech managed to kiss a high of 2,742 and came within spitting distance of hitting our 2,750 target. We are still looking for a close above this level before we say the bulls have a REAL good shot at the 52-week high of 2,887. We mentioned the Tech names reporting earnings this week on Monday night and said they could play a big role in a break past resistance or a pullback to 2,650-2,600 if the 2,700 level doesn’t hold.
If Google (GOOG, $628.58, up $3.59), Intel (INTC, $25.04, down $0.10), International Business Machines (IBM, $180, up $0.84) and Microsoft (MSFT, $28.25, flat) can wow Wall Street on Thursday then the bears might have to throw in the towel for awhile. If not, we could get our expected February pullback a couple of weeks early.
As we head to press, futures are up and look like this: (Dow -9), S&P (-2), Nasdaq (+4).
Subscribers, check the Members Area for the specific trade instructions for today as we have set some HARD STOPS for a number of our current option trades. If there is a pullback, we want to protect our triple-digits profits on some trades and close out some of our other higher performing double-digit plays.
We will send out Trade Alerts if they are hit or if we take other action this morning so stay on your toes. Otherwise, we will see you back here on Wall Street’s lunch break.
Tags: GOOG, Google's earnings, IBM, INTC, Microsoft's earnings, MSFT
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Friday, October 14th, 2011
8:45am (EST)
It was another mixed session on Wall Street Thursday as the bears took 2-out-of-3. On Tuesday, it was the other way around and the other two days this week have favored the bulls with Monday’s 3% pop and Wednesday’s break past resistance. Although the Financial stocks were a drag, the market was able to bounce off session lows as the bulls head into today’s session with a comfortable lead for the week.
The Dow fell a little over 40 points, or 0.4%, to finish at 11,478. The index traded to a low of 11,377 which was just above support at 11,350 and represented prior resistance. We are still looking for a close above 11,600 this week.
The S&P slipped 4 points, or 0.3%, to settle at 1,203. The index traded to a low of 1,190 and was held under 1,200 for much of the morning before bouncing back in the afternoon. If anything, the bulls need to hold this level today as they make a bid for 1,225 before the weekend.
The Nasdaq added 15 points, or 0.6%, and went out at 2,620. Tech traded to a low of 2,588 but managed to stay above this level and moved higher into the close.
We saw what looked like strength yesterday so we took advantage of the dip to open 3 new trades for our subscribers. Although we weren’t betting on Google (GOOG, $558.99, up $10.49) to beat earnings, we did take a flyer on a couple of Tech names that might benefit if the company beat expectations. That they did which we will talk about in our afternoon update. We will also go over the “chicken trade” on the options we profiled yesterday. In after-hours trading last night, shares were at $595, up $36. This morning in pre-market action, shares are at $600.
From the “One That Got Away” department…TriQuint Semiconductor (TQNT, $7.39, up $1.46) surged 25% yesterday after the market learned its chips are inside Apple’s (AAPL, $408.43, up $6.24) new iPhone 4S. The option pits exploded once Wall Street heard the news. The TriQuint October 7 calls (TQNT111022C00007000, $0.65, up $0.60) zoomed 1,200% after opening at 3 cents! The November 7 calls (TQNT111119C00007000, $1.00, up $0.85) surged 566% after closing at 15 cents on Wednesday. We certainly don’t want to chase but shares could be headed to $10 on strength and short-covering.
We may have missed this one but we were able to close out 2 more winning trades yesterday as we continue to ride a double-digit win streak. Some our phenomenal returns have come on both calls and puts with returns of 184%, 73%, 164%, 74%, 92%, 75%, 38%, 40%, 56% and 50% just to name a few.
We are hoping to stay hot for the rest of 2011 and into 2012 as we expect the market to continue to be volatile. If we said it once, we have said it 10 times since August…this is one of the best times to be trading the market and we want you in the game. We are doing all we can to profit from this incredible trading environment.
As we head to press, Dow futures are up 129 points to 11,521 while the S&P futures are higher by 16 points to 1,214. Nasdaq futures are showing a 25 point pop and are at 2,350.
Tags: GOOG, Google call options, TQNT, TriQuint Semiconductor
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Friday, July 22nd, 2011
9:00am (EST)
We mentioned yesterday the bulls looked as though they were going to go for broke.
The market was at critical levels to start the week and Monday it appeared it was the bears, not the bulls that had the upper hand and the momentum. Heck, the bears even had the majority of the talking heads, the analysts on Wall Street and 75% of the public calling for a pullback and a “test” to new lows.
Well, that is why we have a stock market, folks.
The bulls have been riding a wave of good 2Q earnings and a possible resolution to the U.S. debt crisis as the two main catalysts to push the market within spitting distance of kissing new highs.
We knew coming into the week the market was on shaky ground but with two weeks left in July, we knew some good news had to come out of Washington, right? The Democrats and Republicans wouldn’t wait until the last possible minute to get something done would they?
With the pressure cooker hotter than a Maryland crab pot, both parties KNEW this week there had to be some progress and so did we which is why we have been telling our subscribers the market would test it 2011 highs.
We still aren’t there yet, and the bulls still might not have enough to get through resistance, but, they are giving it one heck of a go.
The Dow surged 152 points, or 1.2%, to finish at 12,724 on Thursday. The index traded to a high of 12,751 and came with 50 points of hitting our 12,800 resistance target. A break above this level could get the blue-chips to 13,000 while the bears will at least try to bring things back below 12,600 today.
The S&P 500 soared 18 points, or 1.4%, to settle at 1,343. The index reached a high of 1,347 which was 3 points away from our 1,350 target we have outlined all week. We mentioned once 1,334 was cleared we would be here, quickly, and all that remains between 1,375 and a run to 1,400 is…1,350 and the bears.
The Nasdaq lagged but jumped 20 points, or 0.7%, to end the session at 2,834. Tech also came within a field goal of hitting 2,850 which will need to be cleared if the bulls want to challenge the 52-week high of 2,887. The talking heads and pros have been telling you to avoid the Tech sector, and to a degree, they are right. However, they forgot to tell you to BUY old Tech.
We have been following the move in Cisco Systems (CSCO, $16.35, up $0.63) all week and we have been telling our Weekly Wrap subscribers it appeared as though there was some heavy accumulation going on when shares dipped under $15 to a low 52-week low of $14.78.
Miscrosoft (MSFT, $27.09, up $0.04) reported a super quarter after the close last yesterday evening and beat Wall Street’s estimates by 11 cents.
Let’s see, Apple (AAPL, $387.29, up $0.39) is pushing $400, Intel (INTC, $22.81, down $0.18) spanked analysts estimates and Amazon.com (MZN, $213.21, down $2.34) is pushing all time highs.
These stocks may not be Wall Street’s “4 Horsemen” but the strength in these names are helping push Tech, or the Nasdaq, towards decade highs.
We also want to be clear that at some point in 2011 the market should trade to fresh highs, but, we don’t have blinders on and we are aware there could be another failed test here at the top which would keep the market in its current trading range.
To average investors and the talking heads that don’t do homework, they are clueless on charting the market and tend to jump on whatever bandwagon is hot. This can be quite emotional and confusing if you don’t have a game plan so stay focused and trade what the market is giving you.
Futures are pointing towards a slow start for today’s session. Dow futures are down 22 points to 12,668 while the S&P futures are off a point to 1,341. The Nasdaq futures are lower by 9 points to 2,400. Subscribers, please check the Members Area for the updates.
Tags: About options trading, GOOG, option trading, SGEN, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
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Bulls Looking For Third-Straight Weekly Win
Friday, January 20th, 2012
1:10pm (EST)
Everybody’s working for the weekend…
The market is mixed as we head into the second half of trading but it’s been a good day of triple-digit profit taking and we have more to come after the close when the January options officially expire.
For our Weekly Wrap subscribers, it means we could be looking at a bevy of double-digit gains as many of the stocks we told you to load up on in November and December should get called away as they are trading above our option strike price.
We have 10 winning trades that could get “called-away” today on the stocks we cover in our Weekly Wrap. The gains range from 18% on Dendreon (DNDN, $13.49, down $0.27), 27% on Clean Energy Fuels (CLNE, $13.96, up $0.13), 8% on Ford (F, $12.55, down $0.06), 19% on MGM Resorts (MGM, $12.69, down $0.12) and 17% on Vivus (VVUS, $12.13, down $0.23) just to name a few.
We have been money in picking consistent winners which has allowed us to go 16-0 in 2011 and possibly 10-0 to start 2012.
As far as yesterday’s Google (GOOG, $587.39, down $52.18) strangle option trade, here is what we said yesterday:
“A 10% move in Google would equate to a 63-point move in the stock and we could see that on an earnings miss to the downside. However, the upside may not be quite as huge if it is not a blowout quarter and could only be 5% or less which is still $30 but is it enough to create a possible strangle option trade?
The Google January 700 calls (GOOG120121C00700000, $1.10, down $0.20) and the January 575 puts (GOOG120121P00575000, $0.70, down $0.90) would cost $2 together and are a possibility but the stock would need to be at $702 or $573 for us to break even. At $704, or $571, the trade would double but again, the options expire tomorrow.
This is NOT an official option trade recommendation but we wanted to show you how strangle option trades work since we have a ton of new subscribers. The risk/ reward on this trade doesn’t look great and it may be better off to SELL these options but that is another strategy altogether and one we certainly don’t recommend on a $600+ stock.” (END)
Shares have traded to a low of $584 so far today and the January 575 puts (GOOG120121P00575000, $0.10, down $0.60) have opened at 79 cents and that was it as they will probably expire worthless. The Google January 700 calls (GOOG120121C00700000, $0.05, down $1.05) will expire worthless.
If we were playing “in-between” or “acey-deucey” we would have taken $2 out of the Google pot if we had sold these options, but again, it was way too much cash to put at risk if shares would have traded above $700 or below $575.
It’s also another reason why we rarely trade options on stocks over $100.
We have a lot to cover in our Members Area and we couldn’t have asked for a better week or month so far to start 2012. We have turned a $10,000 trading account into over $20,000 in 3 weeks and we have said 2012 is going to be a BIG year for us. We are 15-1 on closed trades for the year and you can request our track record by emailing us to see all of the trade details.
As we head to press, the Dow is up double-nickels (55 points) to 12,679 while the S&P is lower by 3 points to 1,311. The Nasdaq is down 7 points to 2,781.
We will be back Sunday night with the Weekly Wrap and more good news. We will also be providing an in-depth look at what this week’s rally has meant and where the market could be going. Until then, have a great weekend everyone!
Tags: CLNE, Dendreon options, dndn, F, GOOG, HGM
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off