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Fireworks After The Bell

Wednesday, July 29th, 2009

1:00pm (EST)

The bulls seem to be on vacation this week and the ones left behind are trying to hold Dow 9,000.  The market is holding up well despite the lack of momentum which is a good sign.  There are still political and economic risks to this market and I mentioned this morning the bulls are searching for the next catalyst.

The Dow is currently down 40 points to 9,057 and has been in the red all day.  We have seen some buying in the late afternoon and hopefully we get that going into the close.  There are, however, some pockets of strength in the market and we happen to be enjoying those gains in some of the stocks that are trading higher.

Ford (F, $7.21, up $0.07), Bank of America (BAC, $13.69, up $0.35) and Microsoft (MSFT, $23.57, up $0.10) continue to roll…

The fireworks are coming after the bell as Cerner (CERN, $64.69, up $0.51), Green Mountain Coffee Roasters (GMCR, $66.53, down $0.97) and Visa (V, $66.08, down $0.22) report earnings…

We were stopped out of the other half of the IBM (IBM, $116.37, down $0.91) August 115 calls (IBMHC, $3.00, down $0.70) and the August 105 calls (IBMHA, $11.69, down $1.17) are nearing the $11.00 stop.  We were also stopped out of the DryShips (DRYS, $6.57, down $0.22) September 7.50 calls (OOCIU, $0.50, down $0.10) at 50 cents.  The entry price was 35 cents which gave us about a 50% return.

That is all I have for now and I will be back tonight (by 11pm EST) to give the update. 

Rick@MomentumOptionsTrading.com

Wednesday’s Wake-Up Call

Wednesday, July 29th, 2009

9:00am (EST)
 
Futures are pointing towards a negative open after Durable Goods orders came in lower than expected.  Dow futures are down 38, S&P 500 index futures were down 6, while Nasdaq futures were down 7. 
 
I mentioned the bulls were trying to hold Dow 9,000 and with earnings season nearing a close the bulls are looking for the next catalyst. 
 
Bank of America (BAC, $13.34, up $0.25)
 
November 15 calls (BYOKO, $1.00, up $0.05)
 
Entry Price: $1.50 (6/12/09)
Exit Price: $2.25
Return: -33%
Stop: If BAC falls below $11, close the position.
 
Action: This position has gained over 30% since Sunday night’s Weekly Wrap but is still down from an entry price of $1.50.  Open Interest continues to build in the November options as the 15’s have an OI of over 100,000 contracts.  That means there are a lot of bets being placed at the $15 strike and they are very liquid.  This is great if you are trading 50 or 100 lot contracts.  I still like current positions at these levels.
 
For our new subscribers, BofA was below $5 on March 11th when I recommended a couple of call options, May 6’s and July 10’s.  They returned 400% and 500% as BofA stood at $10 a month later.  If you do the math and the stock doubles from here it puts BofA at $26.  These calls would be worth $11 and you would have a 1,000% return on you hands.  Anything is possible, right?  However, all we are looking for is a run past $15 so we can double or triple or money.  (PS, if you haven’t gotten my track record for 2009 or 2008, email us by going to the website and sending us a request)
 
Cisco Systems (CSCO, $21.93, up $0.09)
 
October 20 calls (CYQJD, $2.50, up $0.05)
 
Entry Price: $1.50 (6/2/09)
Exit Price: $3.00
Return: 67%
Stop: $2.00
 
Action:  Tech held up well on Tuesday and Cisco traded up to $21.99.  The 52-week high is $25.25 which is my target for the stock.  The options traded as low as $2.16 so we will keep the $2.00 stop in place. 
 
Green Mountain Coffee Roasters (GMCR, $67.50, down $0.25)
 
August 80 calls (QGMHP, $1.50, down $0.10)
 
Entry Price: $1.40 (7/27/09)
Exit Price: $2.10+
Return: 7%
Stop: $0.70
 
Action:  The goal is to be out of this trade by the closing bell.  We will be watching this one all day as the company reports earnings after the bell today.  These options are inflated meaning the premiums are rich so be careful with this one.  If you can escape with a gain, even if it’s 10%, it may be better than leaving this one open.
 
Buffalo Wild Wings (BWLD, $39.32, up $2.21)
 
August 40 calls (BQUHH, $1.25, up $0.01)
 
Entry Price: $1.10 (7/27/09)
Exit Price: $1.50 (7/28/09)
Return: 36%
Stop: CLOSED
 
Action:  I told you the best time to sell is at the open and these calls traded as high as $1.60.  The first 20 minutes are when the sharks are in the water and we all know sharks usually win these battles.  I can’t stress this point enough to the beginners we have on board.  If a stock is hot, the best time to sell is shortly after the bell because all of the rookie options traders were in there BUYING these call options on Buffalo reporting and beating Wall Street’s estimates.  Each earnings trade is different as you will see and it’s best to have a plan going in and an exit on when to close the trade. 
 
This trading tip is invaluable.
 
Cerner (CERN, $64.18, down $0.81) 
 
August 70 calls (CQNHN, $1.20, down $0.15)
 
Entry Price: $1.30 (7/27/09)
Exit Price: $2.20
Return: -8%
Stop: $0.65
 
Action:  Cerner got a 50 cent pop at the open and these call options trades as high as $1.50.  The company reports after the bell on Wednesday. 
 
Another point I want to make is how some option traders will only look for a 20 or 30 cent move in an option and then sell it.  If you buy 20 contracts and an option goes up 30 cents in price you have made $600.  Do it twice a week and you are making $50,000 a year.  Hard but not impossible.
 
I’m throwing all of this information and tips at everybody this morning because I’m trying to teach you how to use options and the many different ways people trade them.  What kind of profits you want to make is up to each trader.  And each trader’s strategy is different.  Some people like straddles and strangles, some investors write covered calls while others get naked.  “Naked” option trading is not my game but all it means is that you are taking on a ton of risk.
 
Microsoft (MSFT, $23.47, up $0.36) 
 
August 23 calls (MSQHQ, $0.98, up $0.23)
 
Entry Price: $0.78 (7/27/09)
Exit Price: $1.60
Return: 26%
Stop: $0.30
 
Action:  Well, well, well…Yesterday I said “these calls options are technically in-the-money and we only need the stock to recover by 5% to make a decent return off of the trade.”  Microsoft was in the red all morning but made a comeback along with the Nasdaq.  The stock only made a 1.5% gain but the options gained 30%.  Again, it was a short-term trade and I wanted to be out Friday.  Hopefully we can ride this one a little higher but 25% is 25%. 
 
IBM (IBM, $117.28, down $0.35)
 
August 105 calls (IBMHA, $11.69, down $1.17)
 
Entry Price: $3.40 (7/14/09)
Exit Price: $12.00 (7/24/09 1/2 the trade was closed)
Return: 253%
Stop: $11.00
 
August 115 calls (IBMHC, $3.70, down $0.40)
 
Entry Price: $1.05 (7/16/09)
Exit Price: $2.00 (7/24/09 1/2 the trade was closed)
Return: 281%
Stop: $2.00-$2.25, raise to $3.25
 
Action: We closed half of each side of these call options to make it a risk free trade from here on out.  Our stops are in place and you’ll notice I raised the stop on the August 115’s.  IBM has made a nice run but $118 is the new hurdle.  The stock was down 60 cents in after-hours so we may be close to getting stopped out on the other half of the trade.
 
Visa (V, $66.30, down $1.89)
 
August 70 calls (VEHHN, $1.30, down $0.50)
 
Entry Price: $1.60 (7/27/09)
Exit Price: $3.20
Return: -19%
Stop: $0.80
 
Action:  Visa will no doubt be the crown jewel of announcements on Wednesday.  On Monday, the company said it would “continue to meet or exceed” Wall Street’s expectations.  The numbers we want to watch for after the close is 64 (cents a share) and $1.63 billion on the revenue side.  Warning:  If Visa misses or doesn’t impress the Street then these options will drop like a rock if the stock heads south. 
 
DryShips (DRYS, $6.79, down $0.29)
 
August 7 calls (OOCHJ, $0.50, down $0.15)
 
Entry Price: $0.25 (7/21/09)
Exit Price: $0.65 (7/27/09)
Return: 160%
Stop: CLOSED
 
September 7.50 calls (OOCIU, $0.60, down $0.13)
 
Entry Price: $0.35 (7/21/09)
Exit Price: $0.70
Return: 71%
Stop: $0.40, raise to 50 cents
 
Action:  I don’t like giving gains back which is why we closed the August calls on Monday for a 160% return.  The September call options had given us over a 100% gain and our stops were set just above our entry point to protect profits.  I didn’t like the action in DryShips yesterday which is why I raised the stop.  These calls hit a low of 45 cents on Tuesday so if DryShips doesn’t rebound we will let the market take us out with a small profit.  This is exactly why we sold the August options.  DryShips is a very liquid stock capable of making huge moves but let’s take what the market gives us.  
 
Ford (F, $7.14, down $0.13)
 
December 6 calls (FLI, $1.63, down $0.07)
 
Entry Price: $1.25 (5/18/09)
Exit Price: $2.50
Return: 30%
Stop: $1.00, raise to $1.45
 
December 7 calls (FLJ, $1.06, down $0.01)
 
Entry Price: $1.00 (5/18/09)
Exit Price: $1.50-$2.00
Return: 6%
Stop: 50 cents, raise to 75 cents
 
Action:  It is looking as though Ford is trying to build a solid base at the $7 level which would be perfect for this longer-term play.  If we can build a base at $7 then move towards $8-9 then were are golden. 
 
Check back after lunch for an update on today’s action.
 
Rick Rouse

Busy Day At The Office

Monday, July 27th, 2009

10:45pm (EST)
 
What a busy day it was for option traders.  I threw a ton of trades at you this morning plus the ones we have going on.  It was good to see the bulls show up as all three indexes managed to end the session in the green after a lackluster day of trading.
 
The Dow closed higher by 15 points and settled at 9,108.  The Nasdaq chipped in with a 2 point gain and closed at 1,967 while the S&P 500 added 3 to finish at 982. 
 
As far as the trades here is  the list of the ones we added today:
 
Green Mountain Coffee Roasters (GMCR, $67.75, down $0.89)
 
August 80 calls (QGMHP, $1.60, down $0.20)
 
Entry Price: $1.40 (7/27/09)
Exit Price: $2.10+
Return: 14%
Stop: $0.70
 
Action:  Shares of Green Mountain touched $70 then fell.  It appears this will be the next level of resistance and time will tell if it is short or long-term resistance.  The company reports earnings on Wednesday AFTER the bell so we have two full days to really see how this one plays out.  If we get a run back to $70 the calls should hit $2.00-$2.10 which would be a great exit before earnings come out.
 
Buffalo Wild Wings (BWLD, $37.11, down $0.54)
 
August 40 calls (BQUHH, $1.25, down $0.25)
 
Entry Price: $1.10 (7/27/09)
Exit Price: $2.20
Return: 14%
Stop: $0.55
 
Action:  As you can tell, I was “on the fence” with this one all day but pulled the trigger at $1.10.  Buffalo rebounded a bit and beat Wall Street’s expectations after the bell.  In after-hours the stock traded above $39, or nearly $2 higher, and finished at $38.20, up $1.09 by 7:59pm (EST).  We will have to see if this holds up going into Tuesday’s open and if it does remember it is cool to SELL at the open.  We are hoping traders jump in right off the bat so we can sell these calls at a high premium.  There is serious resistance at $40 so watch this area.  If the stock can get above $40 and hold then it could be setting up to make a run at it’s 52-week high of $45.  If shares are rejected at $40 it’s telling us to take profits.
 
Cerner (CERN, $64.99, down $0.90) 
 
August 70 calls (CQNHN, $1.35, down $0.25)
 
Entry Price: $1.30 (7/27/09)
Exit Price: $2.20
Return: 4%
Stop: $0.65
 
Action:  Cerner has been getting an upgrade here and there over the past few weeks and had been setting new highs before today’s pullback.  The White House has said it will promote greater use of electronic medical records and that market is estimated to be worth $8 billion.  Cerner hopes to get the biggest piece of the pie as we make better use of the technology.  This company also reports after the bell on Wednesday.
 
 
Microsoft (MSFT, $23.11, down $0.34) 
 
August 23 calls (MSQHQ, $0.75, down $0.17)
 
Entry Price: $0.78 (7/27/09)
Exit Price: $1.60
Return: -4%
Stop: $0.30
 
Action:  A rebound trade although it didn’t look like it today.  Hopefully, we aren’t catching a falling knife which would be the case of Microsoft is headed back to $20.  These calls options are technically “in-the-money” and we only need the stock to recover by 5% to make a decent return off of the trade.  Remember, it is only a short-term trade and one I’d like to close by Friday.
 
Visa (V, $68.19, up $0.90)
 
August 70 calls (VEHHN, $1.80, up $0.45)
 
Entry Price: $1.60 (7/27/09)
Exit Price: $3.20
Return: 13%
Stop: $0.80
 
Action:  We added this trade to the portfolio at 1:30pm (EST) after I sat around and watched the action for half of the day.  Something about Visa had me wanting to recommend this trade and my hands finally spit it out when the call options were at $1.60.  They opened at $1.35 so we missed a little bit if Visa is ready to lift-off.  The company announces earnings on Wednesday as well.
 
The goal is to close some of the these trades in short order while closing out others.  I normally don’t follow this many trades but this has been a great time to make take some action and added risk because of the bull run we have been on.  Speaking of which, I also want to go over some of the current trades that we have already established positions in.  Drumroll please…
 
DryShips (DRYS, $7.08, up $0.85)
 
August 7 calls (OOCHJ, $0.65, up $0.35)
Entry Price: $0.25 (7/21/09)
Exit Price: $0.65
Return: 160%
Stop: CLOSED
 
September 7.50 calls (OOCIU, $0.73, up $0.33)
Entry Price: $0.35 (7/21/09)
Exit Price: $0.70
Return: 110%
Stop: $0.40
 
Action:  DryShips had a monster day, rising nearly 14%, after reports came out saying that the bulk shippers’ earnings should fall “in-line” with Wall Street’s expectations.  Our goal was to be out before earnings and it was tough closing the August calls with such big gains.  If you only closed half I would understand but this is why I “layered” the trade so that we can make it a “risk-free” trade going into earnings.  So many times have I seen new option traders leave these gains on the table only to see them wiped out.  Yes, sometimes, the type of trades go on to be grand-slams but you have to remember the price moves options can make.  If DryShips continues higher we will still enjoy gains with the September calls.
 
Ford (F, $7.27, up $0.49)
 
December 6 calls (FLI, $1.70, up $0.27)
 
Entry Price: $1.25 (5/18/09)
Exit Price: $2.50
Return: 36%
Stop: $1.00
 
December 7 calls (FLJ, $1.07, up $0.19)
 
Entry Price: $1.00 (5/18/09)
Exit Price: $1.50-$2.00
Return: 7%
Stop: 50 cents
 
Action: These positions heated back today and I told you Sunday night they were solid.  The December 6′s added nearly 20% and we are going to raise the stop from $1.00 to $1.25-$1.30.  Ford got some juice as the “Cash for Clunkers” program had a positive effect on the stock today.  I won’t go into the details but Ford went out on its high which is always a good sign.
 
As far as our other open positions, Bank of America (BAC, $13.09, up $0.58) added 5% while Cisco Systems (CSCO, $21.84, down $0.04) and IBM (IBM, $117.63, down $0.01) held their own.
 
I’ll be back in the morning before the bell with an outlook for Tuesday’s trading.
Rick@MomentumOptionsTrading.com

DryShips Options Hit Pay Dirt

Monday, July 27th, 2009

11:15am (EST)

DryShips (DRYS, $6.74, up $0.51) is having a huge day, rallying 7%, ahead of Friday’s earnings announcement.  Here are the trades I profiled from last Tuesday:

August 7 calls (OOCHJ, $0.50, up $0.20)

Entry Price: $0.25 (7/21/09)
Exit Price: $0.50
Return: 100%
Stop: None

September 7.50 calls (OOCIU, $0.56, up $0.17)

Entry Price: $0.35 (7/21/09)
Exit Price: $0.70
Return: 50+%
Stop: $0.20

Action: The August call options have hit our target and have returned 100% from our entry price.  It would be wise to close out the August call options now to lock in those gains.  You should raise stops to 40 cents on the September calls to protect a small profit in case the stock retreats.

This will allow you to enjoy further gains if DryShips continues to run and the best part is you have already banked a double.  I know it’s tough to close out a position that has returned 100% and looks ready to run further but that is why we “layered” the trade.  Continue to watch both options but do not give back those profits by being greedy.

I also listed some trades from the Monday Morning Playbook and most of them have hit the limit prices.

Green Mountain Coffee Roasters (GMCR, $67.53, down $0.11) started off on a good note but has slipped.  This is why I tell you to wait 20 minutes after the open.  The August 80 calls (QGMHP, $1.40, down $0.40) had a limit price of $1.60 and you could have lowered this as Green Mountain came off its highs.  If you like the trade this looks like a good entry point.

Buffalo Wild Wings (BWLD, $37.05, down $0.60) has also slipped after a positive open.  I was really hesitant on making this an official recommendation because of Friday’s huge run but I have mentioned it so I will include it in the track record. The August 40 calls (BQUHH, $1.10, up $0.40) are an all-or-nothing trade from here on out as the company reports earnings after the bell. 

Cerner (CERN, $64.87, down $1.02) is taking a break from the assault on its 52-week high and the August 70 calls (CQNHN, $1.30, down $0.30) have come down a little from Friday’s closing price.

Microsoft (MSFT, $23.13, down $0.32) got some “short-term” buys from Wall Street analysts and the August 23 calls (MSQHQ, $0.78, down $0.14) look ripe for picking.

I’ll will try and give an afternnon update but I did this one early because I have a busy afternnon.  If I don’t post by 1pm, I’ll be back tonight with a full update.

Rick@MomentumOptionsTrading.com

Thursday's Outlook

Thursday, July 2nd, 2009

8:00am (EST)

Sorry for the delay on this one. Lost my Internet connection for awhile last night due to a nasty storm…

The market continued its yo-yo ways as the Dow added 57 points to finish above 8,500 on Wednesday. We were much higher in the morning as the Dow traded above 8,600 but after a couple of hours we spent much of the day drifting lower.

The lack of volume was apparent again and this is one thing I talked about earlier in the week. I told you we could have a bullish week leading into 2Q earnings but I’m keeping a close eye on the volume to see if this picks up. If we can get some good earnings numbers, backed by strong volume, we could see the Dow over 9,000 in the coming weeks.

Then again, there is the chance we go lower or still stay in a sideways range. The first clue we will get as far as direction goes will come next Wednesday. Write this down on a post-it note and put it on your computer…Alcoa (AA, $10.35, up $0.02) will officially kick off 2Q earnings season as the stock always does each quarter.

Some interesting things from Wednesday:

American International Group (AIG, $18.08, up $16.92) soared nearly 1,500%…that looks shocking, huh? Well, that’s how some financial sites are showing the quote. My brokerage account shows a quote of $18.08, down $5.12. Either way, it looks like the “old” options were wiped out after the 1-for-20 reverse stock split took place. The only options I could find were on the CBOE but they were single digit calls and puts.

When a company does a reverse split, they normally don’t turn out to well, meaning, the fundamentals haven’t changed. If the fundamentals or outlook hasn’t changed, what makes the stock attractive?

AIG was one of the biggest trades I profiled last year and here were my thoughts. (Quotes are from September 15th, 2008):

“It was a bad day on Wall Street with the Dow dropping 504 points but it was even worse for American International Group (AIG, $4.76, down $7.38). The company said it would need $40 billion or more to fix its balance sheet and New York regulators gave AIG special access to $20 billion of cash held by its subsidiaries. On August 26, I mentioned we could see AIG’s stock fall and that the September 18 puts (AIGUS, $13.05, up $6.35) looked good at around $1.30. That was an understatement as the put options have now returned 885%.

Although AIG’s shares have fallen with the rest of the financial stocks, AIG has a significant amount of quality assets it can sell. The stock fell 45% last week and today’s 60% drop is being viewed by Wall Street as an “overreaction.” Call it what you want but when a stock falls from $70 to under $5 it’s hard to rally behind it.

What was really funny is the analyst who downgraded the stock to “Hold” from “Buy,” and lowered its price target on AIG to $14 from $25.50. While there’s a good chance AIG will survive I wouldn’t recommend getting into the stock at any level. The financial stocks have all taken a beating and it has a lot of individual investors worried to the point where they are selling everything. That’s sad because even though the Dow fell 500 points we have been making a mint by buying puts.” (END)

Whoever that analyst was, I wonder if they still have a job? I could smell the smoke before the fire which is why we did so well with this trade. If you want to read the other blogs on AIG, just type it in the “search” box up on the left. I’m not sure if we get a repeat performance if and when they do list options on the stock again but there may be an opportunity down the road to make something on a stock worth much of nothing.

Speaking of road, did you see the action in Ford (F, $5.91, down $0.16) yesterday? Man, talk about selling the news. The stock traded as high as $6.25 in the morning but sold off after Ford announced sales were down 14%. However, Wall Street was expecting sales to be down 17% so the company beat on those numbers. Investors just took profits after three days of strong gains.

The bigger story is that Ford is gaining market share and has done a great job of reducing its inventory. And all signs are pointing to a super back-half of the year. The December 6 calls (FLI, $1.10, down $0.08) traded to a high of $1.25 while the December 7 calls (FLJ, $0.74, down $0.01) made it to 81 cents. I still like them both.

Bank of America (BAC, $13.05, down $0.15) had the same thing happen to it after racing to $13.45 after the opening bell and actually finished lower. We are in the November 15 calls (BYOKO, $1.20, down $0.08) which traded to a high of $1.35 but the action was in the July call options.

I said there would be an opportunity to “day trade” options this week because of the expected bullishness but we haven’t gone “long” on any trades that weren’t already opened. The BofA July 13 calls (BYOGM, $0.72, down $0.02) opened at 77 cents and traded as high as 92 cents. The thing to remember is that you are only trying to hit “singles” this week, not homeruns.

Green Mountain Coffee Roasters (GMCR, $60.06, up $0.94) managed to hold $60 after busting through this level right out of the gate. The July 60 calls (QGMGL, $2.65, up $0.35) were profiled on Tuesday at $2.00 at 11am (EST) and I know I said not to leave anything open but these babies OPENED at $3.40 on Wednesday. Folks, that is a 70% pop in less than 24 hours.

The August 65 calls (QGMHM, $3.55, up $0.15) were trading for $2.90 and they hit a high of $4.00 yesterday. If you do 10-lot trades then you did well with these plays. If you are still in them, CLOSE them out TODAY. We have three-day weekend coming up.

The big thing we are looking for today is the jobs number once again. Wall Street is bracing for double-digit unemployment and the news will certainly shape today’s landscape. We are off on Friday so I will only be doing one more blog today before getting ready for the holiday weekend…probably around lunchtime, look for an update.

Rick Rouse
Rick@MomentumOptionsTrading.com

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    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.

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    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.


2008 - 2010
Track Record
94.05%
73% winners
Results are NOT compounded.

Request our detailed Track Records which are updated in our Members Area. As soon as you sign-up for a subsciption, you will have access to all open and closed trades for 2011 and past years.

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Trader Comments:

    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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