Momentum Options Trading Blog
Daily market updates at 9am & 1pm EST
Blog Roll

Posts Tagged ‘LEAP options’ Weekly Wrap Profit Alert (ARUN) for 1/17/2014

Friday, January 17th, 2014

11:00am (EST)

We have action to take on a trade in our Weekly Wrap that has come down to the wire.  Shares of Aruba Networks (ARUN, $21.45, up $0.85) are surging again today and have been all week.

We recommended a LEAP option trade back in October that has struggled but we stuck with the chart and said to stay long.  We can now take a slight profit.  We used the breakout to play near-term options for our Daily that has handed us a sweet triple-digit return so our patience has been rewarded.

Subscribers, check the Weekly Wrap Premium section/ Members Area for the update and we will be back shortly with our midday Daily report.

Google (GOOG) Call Options Turn $1,000 into $20,000 in 1 Day, Here’s the Proof/ Profit Alert 150%, 172% (OPK)!!!

Friday, October 18th, 2013

1:20pm (EST)

The bulls are stampeding Wall Street and continue to push the market to fresh all-time highs following a number of positive earnings reports.

Google (GOOG, $1,003.99, $115.20) knocked it out of ballpark after beating estimates by 40 cents.  The company reported a profit of $10.74 a share versus expectations for $10.34 a share.  Revenue came in at $14.89 billion and also beat estimates for $14.79 billion.

We haven’t traded Google as much as we use to due to the high option premiums but there could have been some sweet money made if call options were bought ahead of yesterday’s close.

With shares at $888, the options were pricing a 5% price swing and based on those projections, the stock was expected to trade at $940 or roughly $820 following the news.  Given the currently in the market, we figured a 10% move was possible and that would have put the stock near $990 or $800.

The suit-and-ties have been bearish on the stock as many expected a miss but Google surprised to the upside with its first beat in 2 years on both the top and bottom lines.

We have been hot with earnings and we should’ve listed some Google call options when we were doing our homework for the Weekly Wrap last weekend.  We listed a number of trades that have gained 100%, 200%, and even 400% this week and while we caught some of that action, we missed one that would have turned $1,100 in over $20,000!

As you can see from the Yahoo Finance quote below, the Google November 1000 calls (GOOG131116C01000000, $20.86, up $19.76) closed at $1.10 yesterday and are up a jaw-dropping 1,796%!


A 10 contract option trade using these call options would have cost $1,100.  Right now, you could cash out for $20,860.  Amazing!  If you could only afford to do 1 contract it would have cost $110.  Right now, you could cash out for $2,860.

This is the power of options and why we do our homework.  Options are the most lucrative investment you will ever discover and why we play the game.

Of course, if Google would have missed expectations shares could have been southbound and below $800.  If that had been the case, these call options would have gotten spanked and probably would have been down 75% or more.

Next week promises to be just as exciting and we will once again be covering a bevy of possible earnings trades in our Weekly Wrap.  Some of the trades will be transferred to our Daily Watch List but it is impossible for us to list them all because of the current trades and work we do for our Daily updates.  This is why we have a great research team and why the newsletters are separate publications.

If you are not yet a subscriber to our Weekly Wrap that is 82-5 since inception, you can click here for a 1 time offer to get signed up for a 2-week trial for under $30 use coupon code (SAVE-50) through our sister site.  You can also use the coupon to purchase a longer subscription.

You can also register to win an American Silver Eagle by guessing the Dow by clicking here.

If you have any questions email us.

We will have more upcoming details on the monthly contest in our Weekly Wrap and in our Daily but for now we urge you to get on board with the Weekly Wrap as we will be profiling a number of possible earnings trades for next week.  Special Note:  If you are a current Weekly Wrap subscriber, please click on the Guess the Dow link for your chance to win the American Silver Dollar as well.  The contest is at no cost to you and shipping is in the house if you win.

We have also started recommending LEAP option trades for the Weekly Wrap and we have already hit on a few triple-digits winners.  These types of trades can be just as powerful as the Google trade we just profiled.

We did have an earnings trade that made us some bank today and we have Profits Alerts on trade that made us nearly 200%.  Naturally, we have been pleased with how this week has turned out despite the zombie drama out of DC.  Now that things have calmed down, the focus will be on earnings and the market and we couldn’t be happier.

The Dow is currently up 5 points to 15,376 while the S&P 500 is higher by 8 points to 1,740.  The Nasdaq is zooming 39 points to 3,902.

We have some last minute updates on our current trades including Profit Alerts on 2 trades that returned 150% and 174%!  We will be watching the close into the weekend and if you don’t hear from us again before the bell, we will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily.  Until then, have a great weekend everyone and make sure you get signed up to enter the Guess the Dow contest!

Time To Light Up Potash

Tuesday, October 21st, 2008

It has been tough to watch Potash (POT, $73.36, down $8.18) fall from $240 in June to below a $100 by October, then watch it fall below $70 to a 52-week low of $66. I was on the bull train on the way up to $200 from April through June and even before then. Since July though, we have been standing on the sidelines in hopes of the stock finding a new bottom.

In September when the stock was at $150, I mentioned how it was looking “attractive” but that if it failed $145, Potash could be headed much lower. On October 2, one of my blogs that day was “Potash Going Up In Smoke” with the stock at $97. Two days alone last week the stock went from $105 to $116 to $76. That should be enough to scare anyone away from being bullish but I think we are finally setting up for a good option trade in Potash.

I could bore you with the numbers and tell you what the company is going to make over the next few years or tell you how the price of potash fertilizer is still going for $1,000 a metric ton. The stock is cheap with a forward P/E (price-to-earnings) of 3 but valuations mean nothing in this market. At least not right now.

Just because the stock looks cheap doesn’t mean it can’t go lower. Plus we are in a market that no one trusts and that will take time. Having said that though, I do believe that Potash can rebound from these levels.

The November 80 calls (PVZKP, $6.90, down $4.60) fell 40% today and you could start your research there for a possible trade or you can look even further out. The 2010 January 180 calls (WPTAW, $4.00, down $2.50) also lost about 40% but they do not expire until January 15, 2010 – or 16 months from now. The high for these calls? $96. I’m not saying that these calls will go from $4 to $96 by the time they expire but there was some interest in these options today as nearly 400 contracts traded.

Rick Rouse

Intel Tops Earnings Forecast

Tuesday, October 14th, 2008

Intel (INTC, $15.93, down $1.06) reported earnings after the bell which topped Wall Street’s expectations by a penny. The company reported earnings of $2 billion, or $0.35 a share versus $1.8 billion, or $0.30, from the year-ago period. Revenue came in at $10.2 billion, up just 1% but it was still a record quarter. Although they missed slightly on the revenue number it was still considered a good quarter by many analysts.

Going forward the company was a little cautious on demand in the fourth quarter but their margins continue to improve as the cost of making chips is getting cheaper. Gross margins were at 59% for the quarter, up from 55%.

Make no doubt, Intel is the 800-pound gorilla when it comes to making chips. They control 80% of the market while its smaller rival, Advanced Micro Devices (AMD, $4.27, up $0.06), is struggling to keep up. In fact, AMD recently announced it is spinning off its chip-making factories in order to cut costs and is joining forces with the Persian Gulf state of Abu Dhabi. AMD can no longer fight Intel on its own and the latest move shouldn’t have much of an impact on Intel’s market share. AMD reports earnings on Thursday.

Intel just hit a low of $14 last Friday so there is nothing wrong with going bottom fishing here. The only thing that could be troublesome is the fact the company could miss earnings come next quarter (January 2008) but until then there is a decent chance you could do well going long on Intel. The January 2010 20 calls (WNLAD, $2.17, down $0.23) look very good at these levels and give us over a year to play a rebound in Intel. If Intel can get back to its 52-week high of $27-$28 then you are looking at an easy triple.

The January 2011 20 calls (VNLAD, $3.19, down $0.16) do not expire for another 26 months and would double under the same circumstances. Both plays look solid.

The stock was up 59 cents to $16.52 in after-hours trading so these calls may be a little more higher after the opening bell. However, if you want to wait until after the open, the 2010′s should be in the $2.25-$2.50 range and the 2011′s should be around $3.25. If Intel fails to hold these gains then of course these calls will be cheaper.

Either way, I wouldn’t hesitate to pull the trigger on a trade.

Rick Rouse

Harley-Davison Weathers Storm

Monday, August 11th, 2008

Back in June, I mentioned shares of Harley-Davidson (HOG, $41.94, up $0.19) had been in a downtrend for 18 months, falling from a high of $75 to a low of $32.18 on 7/15. Two days later, the company announced earnings and since then the stock has been on a roll.

Harley-Davidson reported 2Q earnings of $223 million, or $0.95 a share, versus $291 million, or $1.14, last year. Wall Street had expected earnings of just $0.76 a share so the company beat by 19 cents. Revenue checked in at $1.6 billion or about $200 million higher than estimates.

With the stock at an eight-year low, the stock was beginning to look attractive and I said to wait for the company to report earnings before going long. Most of my assumptions turned up fairly accurate, the stock drifted lower, the weather warmed and gas prices continued to climb. It seems that people are buying Harley’s as a way to combat higher gas prices. Another reason I chose Harley was because there was no “pure-play” in the scooter industry that I liked and it has been apparent that two wheels are cheaper than four.

I said at the time, “usually it’s better to wait and see if a company’s products are back in demand before trying to time a bottom which I’m not quite sure if Harley has hit or not.” Well, Harley did hit its bottom and it was at $32. It would have been have been risky to buy a call option ahead of earnings but that bet would have paid off.

The January 40 calls (HOGAH, $5.20, unchanged) were trading at $4 and the January 50 calls (HOGAJ, $1.32, down $0.08) were trading at $1.15 in the 6/13 blog and they were a lot cheaper when Harley bottomed out. I said to wait for the stock to get above $42 before seriously considering any of these plays and here we are. I wouldn’t go crazy with this trade but one or two call options may be worth a gamble.

Rick Rouse

« Older Entries
Weekly Wrap Subscription

    Stop Missing Out!
    Real-time trades and detailed stock market analysis for the past week and week ahead.

Follow us on Facebook
Follow us on Twitter

Biggest Winners

    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

    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 2008-2012 Track Records by sending us an email or filling out the box below.

Trader Comments:
    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. REGINA L.

    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. STEVE T.

    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. SCOTT H.

    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 PETER G.

    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. LAWRENCE O.

    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the 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 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! C.J.

    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! SHAUN

    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. MICHAEL K.

    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!
    PARAG P.

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

    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. MIKE

    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. TRISH D.

    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! MIN L.

    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! JOE G.

    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. GREG F.

    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. NOEL

    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. TODD F.

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

    “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. :) ” NOEL

    “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.” CHRISTIAN

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

    “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.” CHARLES M.

    “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.” BRYAN C.

    “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.” JOHN H.

    “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.” JEFFREY

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

    “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.” GREG

    “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.” KEN

    “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.” GARETT

    “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.” TERENCE

    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 –

    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-

    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.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel


    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony


    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob

Follow us on Twitter