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Monday, April 2nd, 2012
9:00am (EST)
“Although this week is historically bearish, we could see some “window-dressing” by the fund managers which means they will be buying stocks early in the week. We still feel the market is close to peaking but we wouldn’t be surprised to see one last run at our near-term targets (Dow 13,500; S&P 1,425-1,450; Nasdaq 3,250; Russell 850) if there is a rush to buy this week.
We could also see a trading range this week before we get the surge in April which is typically one of the best months of the year for the market. Over the past decade, the indexes have gained 2%, on average, in April and if support holds this week, there is a good chance history repeats itself. However, we aren’t too bullish on 1Q earnings which will start to come in during the second week of April” (3/25/2012 Weekly Wrap/ Monday Morning Outlook)
The bulls held support and continued with their winning ways last week following the “Bernanke Bounce” on Monday. The major indexes rallied 1.5%, on average, after hearing the Fed Chairman say supportive monetary policies would remain in place and that another round of quantitative easing could be a possible. Ben Bernanke said the U.S. economy would need to grow more rapidly to produce enough jobs to further bring down the unemployment rate (which comes out this Friday). This spurred a huge relief rally following the prior week’s slight pullback as the market reached fresh 52-week highs.
The bulls came close to our aforementioned near-term targets as the momentum continued into Tuesday’s open. However, the momentum faded late in the day as a late session sell program hit Wall Street. The Dow was able to finish in positive territory but the S&P 500 and Nasdaq couldn’t escape the bears attack as both indexes ended the day with slight losses.
Wednesday’s futures were showing a continued pullback as the bears looked poised to crack another layer of support following weaker-than-expected economic news from overseas. They did at the open as the market fell over 1% when trading got underway. The Dow fell to a low of 13,069 while the S&P dipped under the 1,400 level before both indexes bounced back by the closing bell.
Thursday’s action was more of the same in the morning as lighter-than-expected economic news muddied the waters. Initial Claims fell 5,000 to 359,000 versus expectations for a drop to 350,000 but the previous week’s numbers were “revised” which accounted for the slight miss. Meanwhile, fourth-quarter Gross Domestic Product (GDP) increased 3.0%, which matched forecasts while Personal Consumption increased 2.1%, also in-line. Wall Street must have realized this after their lunch break as the indexes rebounded sharply in the second half of trading and into the close. The Dow was able to squeak out a small gain while the Nasdaq and S&P suffered only minor losses. This led us to believe that Friday was going to be a good day as the market was on the verge of booking one of the best quarters we have seen in quite some time…
****************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a great start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter whiand double-digit returns for our Weekly Wrap. We are 59-13 over the first 3 months of 2012. Our list of winners include +475% on American Express, +292% on Capital One, +131% and +114% on 2 MGM trades, 200% on SGMS, 107% on AFL, 100% on STX, 82% on TSM and 125% on MSFT just to name a few. In other words, our closed option trades have turned a $10,000 trading account into $46,765 for a 367% return using our recommendations. We also don’t count closing “HALF” trades twice like some options newsletters do or tell you to buy another “HALF” position on a losing trade then only count it once. Our Track Record is real and so is our reputation. We also offer auto-trading which verify our results.
Tags: best options newsletter, best options newsletter 2012, options track record, stock options track record, stock options trading advisors
Posted in Market Analysis, Market Commentary, Option Trades | Comments Off
Friday, March 30th, 2012
1:10pm (EST)
The bulls are on track to finish the first quarter and the start of the year with their highest gains in nearly 15 years. Although economic news has come in lighter-than-expected today, the bulls are making another push at resistance as we head into the weekend. The bears made a nice recovery off the Bernanke Bounce on Monday but the indexes are on track to finish the week higher despite the bears 3-day win streak which could be ending today.
As far as economic news, Personal Spending jumped 0.8% in February versus expectations for an increase of 0.7% while Personal Income rose 0.2% versus a forecast for 0.4%. The Chicago ISM slipped 1.8 points to 62.2 in March after rising nearly 4 points to 64 in February. And finally, the University of Michigan Consumer Confidence report showed a reading of 76.2, beating the suit-and-ties forecast for a print of 74.5.
The Dow is up 51 points to 13,197 while the S&P 500 is higher by 5 points to 1,408. The Nasdaq has danced on both sides of the ledger but is currently positive by 2 points to 3,097. If current levels hold, we should rally into next week.
We were able to close 4 more winning trades this week but we also took 2 lumps on trying to short the market. We played some WEEKLY options that probably aren’t going to rebound as our aggressiveness didn’t quite pan out. Our overall 2012 Track Record is now 59-13 which is an 82% winning percentage but we still hate losing trades. We probably should have played the April or May options to give the trades more time but we didn’t and we blew it.
We have had an incredible quarter to say the least as we have been able to turn a $10,000 trading account into $40,000 in just 3 months. In other words, while some of the Wall Street pros might be lucky enough to show their clients a double-digit gain for the first quarter – we made our subscribers 300%! You can request our 2012 Track Record by emailing us if you are not a member to see all of our closed trades for the year.
We are expecting another exciting quarter which kicks-off next week as we have a number of trades that are starting to set up nicely for us. There is still a chance we play some more call options but we are also watching a number of short ideas. Our biggest trade of the quarter was this week’s call option win in American Express (AXP, $58.05, up $0.16) which we closed for a 475% gain. We are looking at some longer-term put options that could make just as much if the market pulls back in May and June which we expect it will.
We have some last minute thoughts on our current trades and we will be back Sunday night with the Weekly Wrap. Until then, have a great weekend everyone!
Tags: AXP, best options newsletter, call options, Chicago ISM, options track record
Posted in Economic News, Hot Stocks, Market Commentary, Strategies | Comments Off
Tuesday, February 7th, 2012
9:00am (EST)
The market spent all of Monday in the red as the bulls tried to recover from the opening losses at the start of trading. The market was unable to gain any momentum following another day of Greece this and Greece that but there was a late day push to get back to even. We said yesterday the market still felt like it wanted to go higher but we simply ran out of time as the bears held on for the win.
The Dow slipped 17 points, or 0.1%, to finish at 12,845. The blue-chips traded to a low of 12,793 which was just under prior resistance at 12,800 and is trying to serve as new support.
The S&P 500 fell less than a point, or 0.1%, to settle at 1,344. The index kissed a low of 1,337 but went out right at its high for the day as the bears failed to crack 1,325.
The Nasdaq gave back 3 points, or 0.1%, to end at 2,902. Tech dropped to 2,887 intraday and we were rooting for a close above 2,900 which we got by the closing bell.
Despite the lack of action, we were able to close out another winning trade yesterday and took half profits in another as we ran out 2012 Track Record to 19-1, or an 95% win rate. We also want to explain to you real quick what makes us the best option service in the business.
As we have mentioned, most option sites do not have track records because they don’t trade or because they don’t want you to know their results. The few websites that do offer track records, well, some of them are tricky in the way they record their results and we want to point this out to you.
There are some websites which record their “winning results” but if you look closely, they will count the same trade twice, three times, or in some cases, four times, by closing out half, third, or quarter positions. This is not right and this is not fair to you as an investor.
In other words, if we recommend a trade and tell you to take half profits, we count closing the other half as ONE trade – win, lose, or draw. If we close half of a trade at $1 and the other half at $2, our average closing price for the trade is $1.50. If we posted results this way, we could be 36-1 instead of 20-1 to start 2012. See the difference already?
The “other” option sites might also recommend a position at $2 and then when it drops to $1 they tell you to “average down” and buy more. Yet, when both “half” positions end up expiring worthless, they average the trade at $1.50 and count it as one losing trade instead of 2.
Folks, we do not do any of these smoke-and-mirror gimmicks and what really separates us from other option newsletters is that we have 3 auto-trading partners that verify our results. We also have a loyal subscriber base and our integrity is the most important value to us along with your trust.
We won’t get every trade right but we do have a 4-year track record of over 70%. Our subscribers keep tabs on what is happening out there. Our NEW subscribers tell us where they came from and provide us with the results because they are happy to have found us.
With that said, futures are up and we have a NEW TRADE we are trying to get into this morning. Dow futures are lower by 11 points to 12,765 while the S&P futures are off 3 points to 1,336. The Nasdaq 100 futures are showing a decline of 5 points and are at 2,520.
Subscribers, check the Members Area for the updates and make sure to use limit prices at the open to get the best fill.
Tags: options autotrading, options track record
Posted in Option Trades, Trade Update, Trading Psychology, Trading Tips | Comments Off
Sunday, October 30th, 2011
11:30pm (EST)
1. Market Summary
2. Zoom Technologies (ZOOM) – Zoom or Doom?
3. Molex (MOLX) – Value Play with Strong Cash Flow
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)
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If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are expecting another busy and possible volatile week and we could release NEW Trade Alerts as soon as Monday morning as we look to stay hot. We are the verge of closing our 24th-straight winning trade for our Daily newsletter and our Weekly Wrap 2011 portfolio is 12-0 with 3 more possible winners coming in November. Sign-up now and receive access instantly!
Tags: call option, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put option, stock options trading, volatile options
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Sunday, September 18th, 2011
8:00pm (EST)
1. Market Summary
2. Carrizo Oil & Gas (CRZO) – A Long-term Buy
3. Covered Call Options/ Special Offer
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
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3. Covered Call Options (INTC)/ Special Offer
We wanted to take the time this weekend to explain covered calls one more time to show you how powerful they can be. This is a popular option strategy for investors who OWN stocks because it allows them to receive extra income for selling an option against the shares.
We have covered quite a few stocks over the years and we are mainly an option based newsletter. However, we also wanted to use our Weekly Wrap to show you the power of covered calls and how they can be used to lower your cost basis in a stock.
Our goal is quite simple. We look for “flat” stocks that have strong fundamentals and seem to stay in a trading range, and, we look for “momentum” or “breakout” stocks that look poised to continue higher.
This is not an official trade recommendation, yet, but here is how a covered call works.
Let’s say that you own shares of Intel (INTC, $21.97, up $0.43) which have been in a well defined trading range for 5 years and longer. Excluding the trip down to $12 in late 2008 and early 2009, shares have traded in a range of $18-$24 with a pop to $28 since 2006. We like the company’s continued long-term prospects, still, and shares could be on the verge of challenging new 52-week highs with the recent run up to $22 (black line, green circles). This is exactly the type of stock we like to use for our covered call strategies.
To take advantage of a move higher, we could sell a call option on Intel which allows us to keep the premium from the option sale. This limits our upside but lowers our overall cost in the stock. If resistance at $22 is too strong to overtake, then shares would retreat and we would look to write another call option once the other one expired.
Here is how it would play out if we were to buy the stock and sell an Intel October 23 call option (INTC111022C00023000, $0.42, up $0.09) on Monday. These options were up 27% on Friday and we will be following Intel and these options in our Daily publication this week.
1) If Intel stays below the $23 strike price by mid-October – the option will expire worthless and we keep the premium from the option. This lowered our cost basis in the stock to $21.55 if we to get in at current prices.
2) If shares fall below $20 after testing resistance and fall back to support – the option expires worthless, we keep the premium, and we still own the stock. We can then right another call option or wait for shares to rise back above $21.55 before selling another call option.
3) If Intel trades above $23 by mid-October – the option is exercised, and we have to sell our shares for $23, even if the stock is at $24 and at new 52-week highs. We will still make 7% but miss the 9% return from $22 to $24 (without selling the call option) because we had to sell shares at $23.
There are all sorts of variations of the covered call strategy. You can also “write” calls on options that are two months, six months or even a year or two, or even three years out from expiration.
These Intel January 25 calls (INTC140118C00025000, $2.10, up $0.10) do not expire until mid-January 2014 for instance.
You can also sell call options on stocks that are either in-the-money, at-the money, or out-of-the money.
We use our covered call strategy every month on multiple stocks to generate a regular monthly cash flow for our subscribers while lowering their cost basis on solid companies.
Stocks move in only three directions: up, down, or sideways.
With a covered call strategy, you make money if the stock goes up or stays flat. Two out of these three directions work in your favor and we combine this option strategy with our fundamental and technical research to bring you a powerful covered call newsletter.
We have covered dozens of winning stocks since our Weekly Wrap first made its debut back in 2009 and you can read more about some of our homeruns from our Friday afternoon Daily update.
We also included a special offer for you to receive the Weekly Wrap at an incredible for the rest or 2011. A 3-month membership is priced at $199 but you will only pay $99 if you join by midnight Monday night. Current subscribers can also use the special code (BB027CB4CA) to extend their membership and we have also extended our offer in case you want to talk to us or have further questions. Here is a recap of our closed trades for 2011 which brings our track record to 9-0 with more on the way.
VVUS +18%, DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7, GE +5%, CLNE +13%
Although these gains aren’t as powerful as some of the triple-digit returns our Daily newsletter provides, they are enough to double or triple your money over the next few years.
Tags: call option, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put option, stock options trading, volatile options
Posted in Market Commentary, Weekly Wrap | Comments Off
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Bulls Still Showing Strength
Monday, April 2nd, 2012
9:00am (EST)
“Although this week is historically bearish, we could see some “window-dressing” by the fund managers which means they will be buying stocks early in the week. We still feel the market is close to peaking but we wouldn’t be surprised to see one last run at our near-term targets (Dow 13,500; S&P 1,425-1,450; Nasdaq 3,250; Russell 850) if there is a rush to buy this week.
We could also see a trading range this week before we get the surge in April which is typically one of the best months of the year for the market. Over the past decade, the indexes have gained 2%, on average, in April and if support holds this week, there is a good chance history repeats itself. However, we aren’t too bullish on 1Q earnings which will start to come in during the second week of April” (3/25/2012 Weekly Wrap/ Monday Morning Outlook)
The bulls held support and continued with their winning ways last week following the “Bernanke Bounce” on Monday. The major indexes rallied 1.5%, on average, after hearing the Fed Chairman say supportive monetary policies would remain in place and that another round of quantitative easing could be a possible. Ben Bernanke said the U.S. economy would need to grow more rapidly to produce enough jobs to further bring down the unemployment rate (which comes out this Friday). This spurred a huge relief rally following the prior week’s slight pullback as the market reached fresh 52-week highs.
The bulls came close to our aforementioned near-term targets as the momentum continued into Tuesday’s open. However, the momentum faded late in the day as a late session sell program hit Wall Street. The Dow was able to finish in positive territory but the S&P 500 and Nasdaq couldn’t escape the bears attack as both indexes ended the day with slight losses.
Wednesday’s futures were showing a continued pullback as the bears looked poised to crack another layer of support following weaker-than-expected economic news from overseas. They did at the open as the market fell over 1% when trading got underway. The Dow fell to a low of 13,069 while the S&P dipped under the 1,400 level before both indexes bounced back by the closing bell.
Thursday’s action was more of the same in the morning as lighter-than-expected economic news muddied the waters. Initial Claims fell 5,000 to 359,000 versus expectations for a drop to 350,000 but the previous week’s numbers were “revised” which accounted for the slight miss. Meanwhile, fourth-quarter Gross Domestic Product (GDP) increased 3.0%, which matched forecasts while Personal Consumption increased 2.1%, also in-line. Wall Street must have realized this after their lunch break as the indexes rebounded sharply in the second half of trading and into the close. The Dow was able to squeak out a small gain while the Nasdaq and S&P suffered only minor losses. This led us to believe that Friday was going to be a good day as the market was on the verge of booking one of the best quarters we have seen in quite some time…
****************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a great start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter whiand double-digit returns for our Weekly Wrap. We are 59-13 over the first 3 months of 2012. Our list of winners include +475% on American Express, +292% on Capital One, +131% and +114% on 2 MGM trades, 200% on SGMS, 107% on AFL, 100% on STX, 82% on TSM and 125% on MSFT just to name a few. In other words, our closed option trades have turned a $10,000 trading account into $46,765 for a 367% return using our recommendations. We also don’t count closing “HALF” trades twice like some options newsletters do or tell you to buy another “HALF” position on a losing trade then only count it once. Our Track Record is real and so is our reputation. We also offer auto-trading which verify our results.
Tags: best options newsletter, best options newsletter 2012, options track record, stock options track record, stock options trading advisors
Posted in Market Analysis, Market Commentary, Option Trades | Comments Off