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Thursday, March 15th, 2012
12:45pm (EST)
We have been super busy today but the last 48 hours are what makes option trading so lucrative.
As option traders, profits can come in a hurry and after putting our name on the line and calling for another leg higher in the market BEFORE the start of trading Monday, well, let’s just say it feels good to prove those Wall Street pros wrong, again.
We said over the weekend that last Tuesday’s 1% pullback flushed out the weak hands and the 5-week trading range we had been in was about to make a big move. The “selloff” merely stretched support and we have clearly shown all of this in our chart work over the past few weeks. The break above resistance this past Tuesday has been a goldmine for us although gold itself continues to take a pounding.
Speaking of which, we have never been big buyers of gold but it looks like investors would be safe with buying quarter positions at current levels. Gold is currently up $4 to $1,647 an ounce but could dip to $1,400-$1,450 if it gets ugly. This would be an overshoot of support but we are using the weakness to start quarter positions in silver. Silver is down to $32.33 an ounce but is up 15 cents today. In 2 years, silver will easily be above $40, possibly $50. If it silver goes lower from here, we will buy another quarter position so start small just in case.
As far the market, trading has been choppy but as we head into the second half session the bulls are adding to this week’s gains.
The Dow is up 41 points to 13,235 while the S&P is higher by 8 points to 1,402. The Nasdaq is showing a 17 point pop and is at 3,057.
Our subscribers have more profits to take as our Hard Stop for Pepsico (PEP, $64.08, up $0.02) has been triggered today. This call option trade has made us 50% in just over a week but today’s slight pullback in the morning knocked us out of the trade. We also now have a 400% winner on our hands with American Express (AXP, $56.64, up $0.49) so we are locking up another quarter position of profits.
We have so much more to cover inside our Members Area with our current trades so let’s go see where we things are at.
The profits this week have been enormous and we are giddy as we see a great opportunity over the next 3 months to make even juicier profits. We have been saying since last October that this would be one of the BEST times ever to trade the market and we continue to feel that way. In fact, 2012 could be one of our biggest year ever for profits!
Subscribers, check the Members Area for the latest updates and we will be back in the morning with a full report.
Tags: AXP, Gold prices, PEP, silver Posted in Gold, Market Analysis, Market Commentary, Rick's Account | Comments Off
Wednesday, March 14th, 2012
12:10pm (EST)
The bulls charged higher this morning as the market extended its rally following yesterday’s good news on the banks.
We have been super busy today and we have even more profits to take. Another one of our trades is up 100% which makes 3 triple-digits winners in one-day and we have profits to take on a bullish Pepsico (PEP, $64.30, down $0.04) trade that is up over 60%.
We told you to get another wheelbarrow out in February and we may need another one as the profits continue to pour in for our subscribers.
As we head to press, the Dow is up 16 points to 13,193 while the S&P 500 is off by 2 points to 1,394. The Nasdaq is lower by a point to 3,038.
Subscribers, check the Members Area for the important updates and make sure you read the trade instructions carefully. It has been an incredible day and we will go over all of the details in the morning!
Tags: call option trading, Momentum stocks, PEP Posted in Hot Stocks, Market Commentary, Option Trades, Strategies | Comments Off
Monday, March 12th, 2012
1:25pm (EST)
The market is mixed as we enter the second half of trading as the indexes have stayed in a tight range today. The Treasury Budget is due out at 2pm (EST) and is the only economic report scheduled. Perhaps the slow action can be attributed to tomorrow’s FOMC Rate Decision which is also due out at 2pm. Of course, the devil will be in the details as Wall Street will be more focused on the Fed’s ensuing statements. Retail Sales and Business Inventories are also due out on Tuesday.
There are a few stocks getting nice pops today as Pepsico (PEP, $63.77, up $0.62) is up after creating a new President position as it prepares for an eventual successor for Indra Nooyi, its current CEO. The move puts John Compton as #2 in charge and he will head the Americas Food division. Shares have broken above their 200-day moving average (MA) of $63.66 and appear ready to test the 50-day MA which is at $64.50.
Shares of Pepsi recently tested support down at $62.50 and held. We saw it as a great opportunity to add some longer-term call options and today’s news has helped pushed our current Pepsi call option trade to nearly a 50% return in just under a week.
In M&A news (merger and acquisition), shares of Tudou Holdings (TUDO, $37.82, up $22.43) are zooming triple-digits while Youku.com (YOKU, $29.51, up $4.50) shares are also seeing strong gains after the companies decided to tie the knot. The deal is an all-stock swap with Youku.com shareholders getting a little over 70% of the new company while Tudou Holdings stockholders will own about 30%. The new entity will be called Youku Tudou.
As we head to press, the Dow is up 27 points to 12,949 while the S&P is lower by 2 points to 1,369. The Nasdaq is lower by 8 points to 2,980.
We have a lot to cover with our current trades so let’s go see where we are at. Subscribers, check the Members Area for the details.
Tags: M&A news YOKU, merger and acquisitions, PEP, TUDO, YOKU Posted in Hot Stocks, Market Analysis | Comments Off
Friday, August 12th, 2011
10:05am (EST)
For those of you who use our Twitter Alerts to get updates outside of our normal print times of 9am and 1pm, we have good news. We are closing out 2 trades today for gains of 78% and 20% as we head into the weekend. These trades did exactly what we planned for them to do as we were in the positions for only 24 hours. Subscribers, check your email inbox for the updates or the Members Area, now, to get the details.
We will be back shortly after lunch with our afternoon update.
Tags: PEP, POT Profits Posted in Trade Update | Comments Off
Thursday, October 7th, 2010
1:05pm (EST)
The bulls are trying to push past our resistance targets for the major indexes after getting a better-than-expected jobless claims report. Initial jobless claims came in at 445,000 versus the expected 455,000, while continuing claims were 4.46 million versus expectations of 4.45 million. This gave futures a lift which lead to a nice open but trading is slightly negative as all eyes are now focused tomorrow’s non-farm payrolls report. Wall Street is expecting the unemployment rate will rise to 9.7% last month from 9.6% in August.
The Dow made a run at 11,000 and traded as high as 10,998 but is currently down 52 points to 10,914. If the bulls are able to break 11,000 today then we would be a little nervous of a continued breakout because it could be a classic trap by the bears. If the index closes right below 11,000 and gets a good number tomorrow, then we would expect the index to easily run past 11,000 with a run possibly up to 11,300.
The S&P 500 is down by a 7 points and stands at 1,153 but has traded past 1,160 to a high of 1,164. We think a run to 1,175-1,200 could be in the cards but it will depend. And finally, the Nasdaq is down 9 points to 2,371 and has traded as high as 2,392. We are watching the 2,400 level like a hawk.
There is a feeling that the release of Friday’s monthly employment report will sway the market one way or the other but we think 3Q earnings will likely set the stage for where the market is headed over the short-term. We also have an uneasy feeling with the world currency deflating race that is currently going on and the parabolic moves gold, copper and silver are making is mind-blowing but we believe there could be some surprises, good and bad, that will dramatically impact the market over the next 3 weeks.
Speaking of earnings, PepsiCo (PEP, $65.58, down $2.53) reported a profit of $1.9 billion, or $1.19 a share, versus $1.7 billion, or $1.09 a share, in the year earlier period. Revenue jumped 40% to $15.5 billion versus expectations for $15.4 billion. Excluding items, the company said earnings were $1.22 a share versus expectations of $1.21 a share. The stock took a hit after the company said growth going forward would be between 11%-12%, down from 11%-13% growth.
Alcoa (AA, $12.23, down $0.14) and Micron Technology (MU, $7.09, up $0.14) will release their quarterly earnings after the bell.
We will be back in the morning with September’s nonfarm payrolls report and unemployment rate, as will the Commerce Department’s report on August wholesale inventories. Subscribers, check the Members Area for the updates on our current trades and comments for our Watch List.
Tags: AA, Alcoa (AA), explain the concept of options, momentum options trading, option picks, option trading blog, option trading course, option trading courses, PEP, PepsiCo earnings, straddle option trades, strangle option trades, triple-digit options returns Posted in Commodities, Company Commentary, Earnings | Comments Off
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S&P Triggers 1,400
Thursday, March 15th, 2012
12:45pm (EST)
We have been super busy today but the last 48 hours are what makes option trading so lucrative.
As option traders, profits can come in a hurry and after putting our name on the line and calling for another leg higher in the market BEFORE the start of trading Monday, well, let’s just say it feels good to prove those Wall Street pros wrong, again.
We said over the weekend that last Tuesday’s 1% pullback flushed out the weak hands and the 5-week trading range we had been in was about to make a big move. The “selloff” merely stretched support and we have clearly shown all of this in our chart work over the past few weeks. The break above resistance this past Tuesday has been a goldmine for us although gold itself continues to take a pounding.
Speaking of which, we have never been big buyers of gold but it looks like investors would be safe with buying quarter positions at current levels. Gold is currently up $4 to $1,647 an ounce but could dip to $1,400-$1,450 if it gets ugly. This would be an overshoot of support but we are using the weakness to start quarter positions in silver. Silver is down to $32.33 an ounce but is up 15 cents today. In 2 years, silver will easily be above $40, possibly $50. If it silver goes lower from here, we will buy another quarter position so start small just in case.
As far the market, trading has been choppy but as we head into the second half session the bulls are adding to this week’s gains.
The Dow is up 41 points to 13,235 while the S&P is higher by 8 points to 1,402. The Nasdaq is showing a 17 point pop and is at 3,057.
Our subscribers have more profits to take as our Hard Stop for Pepsico (PEP, $64.08, up $0.02) has been triggered today. This call option trade has made us 50% in just over a week but today’s slight pullback in the morning knocked us out of the trade. We also now have a 400% winner on our hands with American Express (AXP, $56.64, up $0.49) so we are locking up another quarter position of profits.
We have so much more to cover inside our Members Area with our current trades so let’s go see where we things are at.
The profits this week have been enormous and we are giddy as we see a great opportunity over the next 3 months to make even juicier profits. We have been saying since last October that this would be one of the BEST times ever to trade the market and we continue to feel that way. In fact, 2012 could be one of our biggest year ever for profits!
Subscribers, check the Members Area for the latest updates and we will be back in the morning with a full report.
Tags: AXP, Gold prices, PEP, silver
Posted in Gold, Market Analysis, Market Commentary, Rick's Account | Comments Off