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Friday, March 26th, 2010
12:50pm (EST)
The market is back on track after European leaders agreed to a bailout program for Greece. Help will come from a joint European Union and International Monetary Fund aid program that will help Greece and other European nations facing rising debt.
We also got a decent consumer sentiment report after the open which showed consumers are still spending and growing more comfortable about the economy. The March University of Michigan Confidence reading came in better-than-expected, at 73.6 versus estimates for a reading of 73.0.
We said this morning we would like to see the bulls stay steady throughout the day and then see them buying into the close. So far, so good.
As we write this, the Dow is up 48 points, or 0.4%, to 10,889 and has reached a high of 10,909. We would love to see a close above 10,900 but we still think the Dow breaks 11,000 over the next few weeks, if not today. If the bulls are buying in the final hour then we could have that blow-off the roof type rally…which we haven’t seen yet.
The S&P 500 is higher by 6 points, or 0.5%, and is at 1,171. The index reached a high of 1,174 and we would like to see a close above this level. Our target of 1,175 has been reached and hit several times which has cleared the way for a run to 1,200.
The Nasdaq is showing a gain of 8 points, or 0.3%, to 2,405 and has traded as high as 2,412. Our next target is 2,500 for the index.
The Casino stocks have been on fire of late and are having another good day as the sector is up more than 4% for the session. We have made some great calls on these stocks in the past and they are one of our favorite groups to trade. We were looking at Las Vegas Sands ($LVS, $22.01, up $1.08) when it broke $20 last week as this was resistance back in January when we profiled a trade that nabbed our subscribers 30%. It still looks interesting and maybe we will revist the story this weekend in our Weekly Wrap.
Other stocks in the sector are also getting a pop. Boyd Gaming (BYD, $10.27, up $0.58) and MGM Mirage (MGM, $12.71, up $0.74) are up 6%; Wynn Resorts (WYNN, $77.58, up $3.17) is higher by 4%.
We will be back Sunday evening with the Weekly Wrap.
Tags: Casino stocks, Las Vegas Sands, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Tuesday, January 5th, 2010
1:10pm (EST)
Our trades are hotter than a James Bond Girl…
Folks, the market is slightly lower today but we have got our subscribers into some good trades. The Dow is currently down 34 points to 10,549 as the bulls seem a little tired after yesterday’s huge rally.
The S&P 500 is up a half point and is trading at 1,133 while the Nasdaq is lower by 3 points to 2,305. Although the market is lower we think the rally continues for at least another week.
Imax (IMAX, $14.02, up $0.72) has hit another 52-week high today and we have updated our current option position. We also have another scorcher with our Las Vegas Sands (LVS, $17.99, up $1.37) trade which is up nearly 50% from this morning.
Subscribers, check the Members Area for the updates…
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, Casino stocks, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, Imax, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, Las Vegas Sands, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
Posted in Company Commentary, Hot Stocks, Market Commentary | Comments Off
Tuesday, September 15th, 2009
1:25pm (EST)
Casino stocks are getting another pop and I wanted to update a trade that profiled back in June. This trade was from June and was before our “official” launch so many of you new subscribers have not seen this one. DO NOT take this update as a new trade. In fact, it is being updated and closed today.
We have a lot of new faces and I wanted to walk everyone thru the trade to get a feel on how I look at things.
From June 24th:
“I’ve been talking about creating Watch Lists as a way to help you follow stocks and sectors. The Gambling/ Casino sector has been hit pretty hard and some of the star players in the industry are in the single-digits.
I like MGM the most out out of this group and just last July this was a $40 stock. Yes, we have a long way to go and sometimes I like to think outside the box. Yes, the sector has been punished and we all know MGM is not a $42 stock right now nor does it deserve to trade at that high of a multiple. However, it is dirt cheap.
This is not a trade recommendation but the July 6 calls (MGMGF, $0.95, up $0.45) are up over 50% today. What I’m LOOKING at are the January 2011 January 7.50 calls (VYGAU, $2.60, up $0.40) which do not expire for another 576 days! Folks, that is over a year-and-a-half away. I normally don’t buy LEAPs but here is one case where it might be worth a nibble. If MGM can make it to $20 by 2011, these calls will be worth at least $12.50.
Sometimes it is hard to keep you eye on the prize but a trade like that makes sense to me. Let’s say you are just starting options trading and you don’t have that much money to trade. If you had just $260 you could buy one contract of these call options and if MGM is at $20 by 2011 then you will have $1,250. That is what I mean when I say I’m “thinking outside the box”. (END)
Here was the Casino Watch List from June 24th as well:
“For this Watch List, you should include: Las Vegas Sands (LVS, $7.81, up $0.44), MGM Mirage (MGM, $6.56, up $0.72) and Wynn Resorts (WYNN, $35.28, up $1.29) are the main ones I watch. You could also add Boyd Gaming (BYD, $8.30, up $0.25) and Pinnacle Entertainment (PNK, $9.38, up $0.03).” (END)
Today’s stock prices: LVS, $19.22, up $1.16; MGM, $13.05, up $0.71; and WYNN, $71.06, up $1.95. Wow.
The MGM 2011 January 7.50 calls (VYGAU, $7.50, up $0.70) were at $2.60 and are up nearly 190%. Close at least half of the trade and set a stop of $5.20 on the other half.
I wanted to bring this up because it shows the importance of using these Watch Lists as a way to help you find and set up trades. Look, I get a lot of emails asking how I find trades and the best way I can explain is to create these Watch Lists. Once you see where the money is flowing you can go long (buy call options) in the sector that is hot or short (buy put options) the sector that is falling out of favor.
The market is holding its own…the Dow is up 43 to 9,670. The market is still following the road map we have sketched out over the short-term…
Rick@MomentumOptionsTrading.com
Tags: Boyd Gaming, Las Vegas Sands, MGM Mirage, options picks, options trading strategies, Pinnacle Entertainment, Wynn Resorts
Posted in Hot Stocks, Option Trades | Comments Off
Wednesday, June 24th, 2009
10:45am (EST)
I’ve been talking about creating Watch Lists as a way to help you follow stocks and sectors. The Gambling/ Casino sector has been hit pretty hard and some of the star players in the industry are in the single-digits.
These stocks are getting a lift today and I was just thinking yesterday that they were getting “attractive” again. I’m not ready to go long the sector although I got some interesting ideas.
For this Watch List, you should include: Las Vegas Sands (LVS, $7.81, up $0.44), MGM Mirage (MGM, $6.56, up $0.72) and Wynn Resorts (WYNN, $35.28, up $1.29) are the main ones I watch. You could also add Boyd Gaming (BYD, $8.30, up $0.25) and Pinnacle Entertainment (PNK, $9.38, up $0.03).
I like MGM the most out out of this group and just last July this was a $40 stock. Yes, we have a long way to go and sometimes I like to think outside the box. Yes, the sector has been punished and we all know MGM is not a $42 stock right now nor does it deserve to trade at that high of a multiple. However, it is dirt cheap.
This is not a trade recommendation but the July 6 calls (MGMGF, $0.95, up $0.45) are up over 50% today. What I’m LOOKING at are the January 2011 January 7.50 calls (VYGAU, $2.60, up $0.40) which do not expire for another 576 days! Folks, that is over a year-and-a-half away. I normally don’t buy LEAPs but here is one case where it might be worth a nibble. If MGM can make it to $20 by 2011, these calls will be worth at least $12.50.
Sometimes it is hard to keep you eye on the prize but a trade like that makes sense to me. Let’s say you are just starting options trading and you don’t have that much money to trade. If you had just $260 you could buy one contract of these call options and if MGM is at $20 by 2011 then you will have $1,250. That is what I mean when I say I’m “thinking outside the box”.
One interesting tidbit I have been hearing but need to do more research on is something I heard the other day. There seems to be a lawsuit concerning sports betting that would allow all 50 states rights the right to allow it or not. Can you imagine if this is ever approved? I don’t think it is a good idea because I think it would change sports and the way people would view the games. It will probably never happen anyway but this is news that could surface in the near future.
Rick Rouse
Rick@TheOptionInvestor.com
Tags: Las Vegas Sands, MGM Mirage, Wynn Resorts
Posted in Company Commentary, Watch Lists | No Comments »
Wednesday, May 20th, 2009
9:00am (EST)
Cisco Systems (CSCO, $18.88, up $0.16) made a run over $19 as the July 19 calls (CYQGA, $0.98, up $0.10) hit a high of $1.20 yesterday. They opened at 61 cents on Monday. This was a covered call play but some of you may have bought them straight-up. If so, the trade is up to $20 but really the calls should have been sold once they doubled.
ExxonMobil (XOM, $70.52, up $0.02) traded to a high of $71.13. The June 75 calls (XOMFO, $0.45, down $0.09) actually took a fall yesterday after reaching 60 cents. Our entry price was 63 cents and I’m still looking for a run to $72.
Ford Motor (F, $5.63, up $0.13) closed higher for the fourth trading day in a row and the June 5 puts (FRA, $0.21, down $0.06) have been a train wreck. I mentioned the December 6 calls (FLI, $1.26, up $0.05) and the December 7 calls (FLJ, $0.93, up $0.01) as a hedge and they are basically flat from Monday’s prices.
Las Vegas Sands (LVS, $10.01, down $0.29) made a run to $11 and the September 12.50 calls (LVSIC, $1.70, down $0.10) got up to $1.95. We are still even and our near-term target remains $2.50-$2.60 which gets us 50%.
Bank of America (BAC, $11.25, down $0.48) issued 1.25 billion shares at $10.75 a share in the after-hours market last night and raised $13.5 billion. Sneaky, but you got to like the amount of capital the company raised going forward. The shares were trading for $10 and change before rebounding last night as traders were trying to figure out what was going on. BofA had no comment for the longest time but eventually let the cat out of the bag.
Don’t look now but Advanced Micro Devices (AMD, $4.39, up $0.25) came back to life and hit $4.50 on Tuesday.
Rick Rouse
Rick@OptionsMentoring.com
Tags: Advanced Micro Devices, Bank of America, Cisco Systems, ExxonMobil, Ford Motor, Las Vegas Sands, options blog
Posted in Option Trades | No Comments »
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Bulls Need A Strong Finish
Friday, March 26th, 2010
12:50pm (EST)
The market is back on track after European leaders agreed to a bailout program for Greece. Help will come from a joint European Union and International Monetary Fund aid program that will help Greece and other European nations facing rising debt.
We also got a decent consumer sentiment report after the open which showed consumers are still spending and growing more comfortable about the economy. The March University of Michigan Confidence reading came in better-than-expected, at 73.6 versus estimates for a reading of 73.0.
We said this morning we would like to see the bulls stay steady throughout the day and then see them buying into the close. So far, so good.
As we write this, the Dow is up 48 points, or 0.4%, to 10,889 and has reached a high of 10,909. We would love to see a close above 10,900 but we still think the Dow breaks 11,000 over the next few weeks, if not today. If the bulls are buying in the final hour then we could have that blow-off the roof type rally…which we haven’t seen yet.
The S&P 500 is higher by 6 points, or 0.5%, and is at 1,171. The index reached a high of 1,174 and we would like to see a close above this level. Our target of 1,175 has been reached and hit several times which has cleared the way for a run to 1,200.
The Nasdaq is showing a gain of 8 points, or 0.3%, to 2,405 and has traded as high as 2,412. Our next target is 2,500 for the index.
The Casino stocks have been on fire of late and are having another good day as the sector is up more than 4% for the session. We have made some great calls on these stocks in the past and they are one of our favorite groups to trade. We were looking at Las Vegas Sands ($LVS, $22.01, up $1.08) when it broke $20 last week as this was resistance back in January when we profiled a trade that nabbed our subscribers 30%. It still looks interesting and maybe we will revist the story this weekend in our Weekly Wrap.
Other stocks in the sector are also getting a pop. Boyd Gaming (BYD, $10.27, up $0.58) and MGM Mirage (MGM, $12.71, up $0.74) are up 6%; Wynn Resorts (WYNN, $77.58, up $3.17) is higher by 4%.
We will be back Sunday evening with the Weekly Wrap.
Tags: Casino stocks, Las Vegas Sands, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary | Comments Off