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Tuesday, May 8th, 2012
11:25am (EST)
Now we know how Ben Bernanke feels as we are literally printing money for our subscribers. With the market folding like a cheap lawn chair, our May puts are surging today and we have profits to take on 4 more trades! One trade is up 126%, 2 are up over 60%, and one is up 22%.
Subscribers, let’s go ring the resister so go check the Members Area for the specific trade instructions!
Tags: CAT, JOY, LULU, POT
Posted in Trade Update | Comments Off
Thursday, June 30th, 2011
12:35pm (EST)
The market is pushing higher as the bulls try to make it 4-in-a-row and a clean sweep for the week. The major indexes are up 4%, on average, as we wind down June and look ahead to what should be an exciting July.
Economic news has been mixed today as jobless claims came in at 428,000 versus expectations for 420,000. Continuing claims dropped 12,000 to 3.70 million. It’s been 2 months since we have seen a print under 400,000 so instead of the president worrying about private jets, he should concentrate more on “shovel-ready” jobs.
Of course, he didn’t speak about all the limos Wall Street uses because Washington does the same but how many $5,000 locks are on each and every government officials office versus Wall Street? Traders on Wall Street all work together in an open environment and their doors are open. The knuckleheads who work for us lock themselves behind closed doors and can’t figure out how to lower a $14 trillion deficit.
Elsewhere, the Chicago Purchasing Managers Index came in at 61.1 which was higher than the previous month and better-than-expected.
The Dow is up 142 points to 12,403 while the S&P 500 is higher by 13 points to 1,319. The Nasdaq is showing a 32 point pop and is at 2,772. Call it window dressing, end of quarter, a bounce off support, whatever, but the bulls are rolling as they look to take out another layer of resistance.
As far as specific stocks, Vivus (VVUS, $8.02, up $0.14) is back over $8 and testing key resistance today after the company filed for FDA approval for its good wood drug, Avabafil. The drug will compete with Pfizer’s (PFE, $20.61, down $0.06) Viagra and other mom-and-pop players, but more importantly, the drug will bring revenue in for Vivus. Of course, we are more interested in seeing the company’s diet drug, Qnexa, come to market but it’s nice that they have a developing pipeline and that they aren’t a one-trick pony.
There has been a party in the Vivus July 8 calls (VVUS110716C000, $0.18, down $0.12) as over 3,000 contracts have traded hands so far today. These options expire in 2 weeks so it will be interesting to watch this battle going forward.
We have an ongoing option trade in Vivus but it’s not the July calls. We went further out because we feel they could be the first company to bring a diet drug to market and obesity is a multi-billion dollar market. The first company in with a safe obesity drug stands to make a windfall.
Other hot stocks this week include Potash (POT, $56.22, down $0.64) which is taking a little breather following a sweet run. We wanted to profile an option trade today because we have following the stock all week on our Watch List. This section in our Members Area lists possible trades that we are watching but aren’t “official” recommendations. However, the action has been incredible. We list these trades because we are either waiting for a breakout or breakdown or because our portfolio is full from time-to-time, and we want to keep fresh ideas on the board as we close out old trades or take profits while looking for new positions.
Sometimes these trades take-off before we can add them to our portfolio and in some cases we don’t like to “chase” but we will still follow the position. Anyhows, Potash trades monthly and WEEKLY options and we just wanted to show you the power of options and how leverage can be a thing of beauty.
Potash started the week at $52.54 and here were our thoughts Monday morning with a chart and a possible option trade (quotes from that day).
“Potash (POT, $52.54, down $0.40)
July 55 calls (POT110716C00055000, $0.70, down $0.10)
Thoughts: If shares can break above their 200-day MA, they could make a quick run back to $55 (black line, blue circles) which was previous support and is now short-term resistance. Potash also trades WEEKLY options so we may use these options or another chain if we see an opportunity.” (END)
Here were our thoughts this morning as we have been following Potash all week:
“Thoughts: These July 55 calls (POT110716C00055000, $2.55, up $1.15) options opened at 72 cents on Monday and our chart work was spot on. The WEEKLY July 55 calls (POT110701C00055000, $2.00, up $1.50) opened at 21 cents on Monday. Yes, we wish this would have been an official recommendation but some of you swung the bat and are being rewarded judging by your happy emails to us over the last few days.” (END)
We suggested selling half positions along the way and we certainly would have been out of the trade by now because the stock has done what we planned on by hitting double-nickels ($55) and the weekly options expire tomorrow.
It would have been super-awesome to have been able to turn $200 into $2,000 or $2,000 into $20,000 but it’s good to know our hard work is paying off for our subscribers. We have bagged quite a few triple-digit winners this year and in June we have hit 4, but this is one elephant we wished we would have bagged earlier in the week.
We have given you a ton of examples this week on how options work and what makes them move because we truly believe the next 6 months are going to offer some incredible trading opportunities. In fact, we could see triple-digit moves in the Dow, up or down, on a regular basis in the weeks and months ahead and it will be a great time to try to make some big money.
If you are not yet a subscriber, we urge you to give us a try. We had a hot June but we are expecting an even hotter July with earnings season coming up, the end of QE2, and with the uncertainty over the U.S debt, you can bet there will be volatility.
We will be back in the morning with our next update but look for an email today with a Special Offer for our Weekly Wrap. This publication is on F-I-R-E!
We are CLOSING 2 trades today and the profits are 50% and 133% which makes it 5 triple-digit winners for June…Subscribers, check the Members Area for the current updates.
Tags: About options trading, option trading, POT, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, Vivus drug approval, VVUS, what are stock options, what is a call, what is option trading
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Friday, April 1st, 2011
1:35pm (EST)
Lots of good happenings today, folks.
We had a little trouble sleeping last night in anticipation of this morning’s nonfarm payrolls numbers. Futures were up overnight by about 0.2% and we had a pretty good feeling this morning that the bulls would push the tippy-top of resistance. The headlines for today’s unemployment report will be debated but we could care less. All we care about is price action and we said to stay long and strong.
The Dow is up 77 points to 12,396 and has kissed 12,416. The February and 52-week high is 12,423.
The S&P is higher by 9 points 1,335 while the Nasdaq is showing a 16 point pop and is at 2,797 but has touched 2,802.
The rally up to resistance is a strong indication the bulls will probably push our next set of targets for the market and we will go over them this weekend. We will also be doing a video for our course members who have purchased our trading manual, How to Trade Options on Momentum Stocks, either this weekend or next.
For those of you who have been in our “mentoring” program, these videos are designed to help you find your own option trades and to understand where the market could be headed over the short and long-term. We also cover possible trades, different option strategies and some chart work.
The start of 1Q earnings season is just around the corner and it is one of the best times to look for trades. Each week in our Weekly Wrap we highlight the companies that we think will move 5%-10% and we show you how to find call or put option trades to take advantage of the possible price swings in our videos.
Alcoa (AA, $17.57, down $0.09) will announce earnings on April 11 which ”officially” starts the season so we have all of next week to start getting ready for our trade setups. We currently have Alcoa on our Watch List as we feel shares could push $19-$20 on a good announcement.
The cost of our trading manual and video courses have been low because we wanted to give everyone the opportunity to get the options manual at an incredible price and for those of you who have supported us through the years. This weekend, the price is going up and we won’t be offering anymore deals as we start to promote the course more aggressively.
Currently, you can get our option course at no charge (shipping included) if you subscribe to a 1-year membership to our Weekly or Daily newsletter. Again, this will be our last weekend offering this promotion.
We are also going to cover WEEKLY options in our next video. We recommended our first trade with these types of options on Monday. We recommended the Potash (POT, $60.77, up $1.84) April 60 calls (POT110401C00060000, $0.71, up $0.50) at 33 cents and closed the trade yesterday for a small profit.
We were a little nervous that the $60 level would be tough to crack so we decided to get out of the trade and try again next week. As you can see, these options are up over 200% today and had traded down to 10 cents on Wednesday. Today they have traded up to 94 cents.
The reason we went with this trade and closed it yesterday is because it was part of our PLAN. Before we got into the trade we said to ourselves it would be a play on Mosaic’s (MOS, $81.13, up $2.38) earnings (which blew away Wall Street’s estimates yesterday). We thought Potash would easily break $60 if Mosaic popped 5%-10% but they didn’t. We also knew if Mosaic would have moved this much, Potash would have followed and we would have been out of the trade before Friday and the jobs report.
In any event, we blew it, to a degree, because we closed the trade a day early but the more important thing is that we followed our plan. However, there are over 50 stocks that trade Weekly options and we will cover that list in our video. You can bet we will hit a big trade like this one, soon.
We have a lot to cover in our Members Area, including a NEW TRADE, so we have to roll but we wanted to make you aware of our offer. We will be back Sunday night with the Weekly Wrap which has become a big hit with covered call investors. These trades are designed to make 5%-10% every month or two which adds up over a year.
Have a good weekend everyone and we expect the rally to continue into next week with new highs on the horizon.
Tags: AA, Alcoa Earnings, MOS, Mosaic, NYSE: AA, POT, Potash
Posted in Option Trades, Weekly Wrap | Comments Off
Monday, August 23rd, 2010
12:45pm (EST)
The bulls took the major indexes higher at the open but thing started to change after an hour of trading. The Dow was showing an 80 point pop but slipped into negative territory after drifting lower as we head towards the second half of trading.
The bears were patient as the bulls lacked any real conviction and there is no major economic news due out today. Earnings are light as companies start to close the books on 2Q earnings and look ahead to 3Q’s numbers. As a result, the major averages are hugging the flat line as both the bulls and bears feel each other out.
The Dow is currently up 11 points to 10,225 but has traded to a low of 10,191 and below our intermediate target of 10,200. We said last night the bears will be taking a shot a Dow 10,000 and that appears to be a good possibility this week.
The S&P is showing a gain of 2 points and is at 1,074 while the Nasdaq is lower by 7 points to 2,172.
Other tidbits from today’s action:
From time to time, we like to voice our opinion on analyst’s upgrades and downgrades on stocks. Today’s head scratcher comes from Deutsche Bank (DB, $65.11, up $0.17) which downgraded shares of Baidu (BIDU, $79.70, down $2.47) this morning.
DB lowered its rating to Hold from Buy but raised the price target to $86 from $80. Shares closed at $82 on Friday so, technically, weren’t shares a Buy if they raised their price target?
Research In Motion (RIMM, $47.83, down $0.89) continues to gravitate towards its 52-week low and could be headed for real trouble. Our channel checks are showing the Torch is not keeping pace with the other “smartphones” and RIMM is losing market share at an alarming rate.
Mosaic (MOS, $59.01, up $2.37) continues to spit fire while Potash (POT, $151.52, up $1.85) stays smoking hot. We did a big write-up in our Weekly Wrap on the Agriculture sector last night for those of you who may have missed it and want to hear our thoughts.
We have a lot to cover in our Members Area so let’s get to it! Subscribers, check for today’s updates.
Tags: BIDU, MOS, option picks, POT, RIMM, stock options trading
Posted in Company Commentary, Hot Stocks, Market Commentary | Comments Off
Monday, August 23rd, 2010
9:00am (EST)
Futures are pointing towards a slightly higher open this morning as mergers and acquisitions (M&A) have once again taken center stage.
Hewlett-Packard (HPQ, $39.85, down $0.91) has made a $1.5 billion bid for data storage provider 3Par (PAR, $18.04, up $0.01) this morning, just a week after rival Dell (DELL, $12.07, up $0.03) agreed to acquire the company for $1.1 billion.
Both HP and Dell have been looking to expand beyond personal computers and they see an attractive candidate in 3Par. HP it will pay $24 a share to acquire the company, or a 33% premium over Dell’s bid of $18 a share.
Elsewhere, HSBC Holdings (HBC, $49.30, down $0.63) is in talks to buy a controlling stake in Nedbank Group from Old Mutual for as much as $7 billion.
Potash (POT, $149.67, up $0.84) is higher in pre-market trading and over $152 after formally rejected BHP Billiton’s (BHP, $67.44, dup $0.09) offer and is getting interest from other companies (and countries).
M&A activity continues to heat up in the dog days of August as companies with strong balance sheets and excess cash go on the hunt for bargains. This positive catalyst could help the bulls’ case in holding current levels on the major indexes as potential acquisitions are a sign companies are confident the economy will grow and business will improve in the coming quarters.
Ahead we head to press, Dow futures are up 25 points to 10,227 while the S&P 500 futures are up 4 points to 1,074. The Nasdaq 100 futures are higher by 10 to 1,835.
We have a lot to cover this morning as we have made some adjustments to our exit targets for some of our trades. We also have a NEW TRADE we profile to replace a few that were closed from last week.
Subscribers, check the Members Area for the updates.
Tags: 3Par, BHP, Dell, HBC, HPQ, option picks, PAR, POT, stock options trading
Posted in Market Analysis, Mergers and Acquisitions | Comments Off
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Bulls Having A Banner Week
Thursday, June 30th, 2011
12:35pm (EST)
The market is pushing higher as the bulls try to make it 4-in-a-row and a clean sweep for the week. The major indexes are up 4%, on average, as we wind down June and look ahead to what should be an exciting July.
Economic news has been mixed today as jobless claims came in at 428,000 versus expectations for 420,000. Continuing claims dropped 12,000 to 3.70 million. It’s been 2 months since we have seen a print under 400,000 so instead of the president worrying about private jets, he should concentrate more on “shovel-ready” jobs.
Of course, he didn’t speak about all the limos Wall Street uses because Washington does the same but how many $5,000 locks are on each and every government officials office versus Wall Street? Traders on Wall Street all work together in an open environment and their doors are open. The knuckleheads who work for us lock themselves behind closed doors and can’t figure out how to lower a $14 trillion deficit.
Elsewhere, the Chicago Purchasing Managers Index came in at 61.1 which was higher than the previous month and better-than-expected.
The Dow is up 142 points to 12,403 while the S&P 500 is higher by 13 points to 1,319. The Nasdaq is showing a 32 point pop and is at 2,772. Call it window dressing, end of quarter, a bounce off support, whatever, but the bulls are rolling as they look to take out another layer of resistance.
As far as specific stocks, Vivus (VVUS, $8.02, up $0.14) is back over $8 and testing key resistance today after the company filed for FDA approval for its good wood drug, Avabafil. The drug will compete with Pfizer’s (PFE, $20.61, down $0.06) Viagra and other mom-and-pop players, but more importantly, the drug will bring revenue in for Vivus. Of course, we are more interested in seeing the company’s diet drug, Qnexa, come to market but it’s nice that they have a developing pipeline and that they aren’t a one-trick pony.
There has been a party in the Vivus July 8 calls (VVUS110716C000, $0.18, down $0.12) as over 3,000 contracts have traded hands so far today. These options expire in 2 weeks so it will be interesting to watch this battle going forward.
We have an ongoing option trade in Vivus but it’s not the July calls. We went further out because we feel they could be the first company to bring a diet drug to market and obesity is a multi-billion dollar market. The first company in with a safe obesity drug stands to make a windfall.
Other hot stocks this week include Potash (POT, $56.22, down $0.64) which is taking a little breather following a sweet run. We wanted to profile an option trade today because we have following the stock all week on our Watch List. This section in our Members Area lists possible trades that we are watching but aren’t “official” recommendations. However, the action has been incredible. We list these trades because we are either waiting for a breakout or breakdown or because our portfolio is full from time-to-time, and we want to keep fresh ideas on the board as we close out old trades or take profits while looking for new positions.
Sometimes these trades take-off before we can add them to our portfolio and in some cases we don’t like to “chase” but we will still follow the position. Anyhows, Potash trades monthly and WEEKLY options and we just wanted to show you the power of options and how leverage can be a thing of beauty.
Potash started the week at $52.54 and here were our thoughts Monday morning with a chart and a possible option trade (quotes from that day).
“Potash (POT, $52.54, down $0.40)
July 55 calls (POT110716C00055000, $0.70, down $0.10)
Thoughts: If shares can break above their 200-day MA, they could make a quick run back to $55 (black line, blue circles) which was previous support and is now short-term resistance. Potash also trades WEEKLY options so we may use these options or another chain if we see an opportunity.” (END)
Here were our thoughts this morning as we have been following Potash all week:
“Thoughts: These July 55 calls (POT110716C00055000, $2.55, up $1.15) options opened at 72 cents on Monday and our chart work was spot on. The WEEKLY July 55 calls (POT110701C00055000, $2.00, up $1.50) opened at 21 cents on Monday. Yes, we wish this would have been an official recommendation but some of you swung the bat and are being rewarded judging by your happy emails to us over the last few days.” (END)
We suggested selling half positions along the way and we certainly would have been out of the trade by now because the stock has done what we planned on by hitting double-nickels ($55) and the weekly options expire tomorrow.
It would have been super-awesome to have been able to turn $200 into $2,000 or $2,000 into $20,000 but it’s good to know our hard work is paying off for our subscribers. We have bagged quite a few triple-digit winners this year and in June we have hit 4, but this is one elephant we wished we would have bagged earlier in the week.
We have given you a ton of examples this week on how options work and what makes them move because we truly believe the next 6 months are going to offer some incredible trading opportunities. In fact, we could see triple-digit moves in the Dow, up or down, on a regular basis in the weeks and months ahead and it will be a great time to try to make some big money.
If you are not yet a subscriber, we urge you to give us a try. We had a hot June but we are expecting an even hotter July with earnings season coming up, the end of QE2, and with the uncertainty over the U.S debt, you can bet there will be volatility.
We will be back in the morning with our next update but look for an email today with a Special Offer for our Weekly Wrap. This publication is on F-I-R-E!
We are CLOSING 2 trades today and the profits are 50% and 133% which makes it 5 triple-digit winners for June…Subscribers, check the Members Area for the current updates.
Tags: About options trading, option trading, POT, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, Vivus drug approval, VVUS, what are stock options, what is a call, what is option trading
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off