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Posts Tagged ‘put options’

Bears Push Prior Support/ Profit Alert (RFMD)!!!

Thursday, May 15th, 2014

12:30pm (EST)

The action this week has left some pretty good clues the market may have reached a short-term top following Monday’s short-covering rally.  Of course, picking market tops (and bottoms) are never easy and trading ranges make that task much more difficult but all signs appear as though the bulls are taking a breather

The “fluff targets” I have given since the beginning of the year:  Dow 16,800-17,000; S&P 1,900-1,909;  Nasdaq 4,400-4,500; and Russell 1,200-1,225 have now triggered for the most part and the summer will be crucial in determining if much higher levels than this are on tap or not.

In February, I gave my yearend price targets for the indexes but I cautioned then the major moving averages (MA’s) would need to hold across the board.  I have talked about the Russell 2000 and Nasdaq being trapped between their 100-day and 200-day MA’s and although one day doesn’t make a trend, 2 or 3 might so the rest of the week will be crucial for the bulls.

I’ve been cautious adding put options to the portfolio all year long and avoiding the traps of a trading range but the portfolio has been filling up with more bearish than bullish plays in recent weeks.

Remember, I am not a bull or bear by heart.  I LOVE playing both sides of the market.  Most investors and slick-talking pros will tell you to avoid market pullbacks and corrections but this eliminates half your play book.  You can make as much money playing the downside as you can the upside so don’t be afraid to go short.

There are a lot of factors moving the market right now and I will cover them in detail tomorrow.  For now, let’s go check on our current trades as many of them are seeing sweet gains.

Heading into the second half of trading, the Dow is down 193 points to 16,420 while the S&P 500 is lower by 25 points to 1,863.  The Nasdaq is tanking 60 points to 4,040 and the Russell 2000 is declining 18 points to 1,084.  The VIX is at 13.56, up 1.39, and is above the 13.50 level I warned about this morning.

Subscribers, hit the Members Area for the updates.

VIX Trips 15 as Bears Get Aggressive/ Profit Alert (233%!)!!!

Friday, January 24th, 2014

12:30pm (EST)

The bulls faced trouble at the open and the talking heads have been all jacked up on a pending correction following yesterday’s pullback and today’s test to the second wave of support levels.

The Dow is on track for its worst week since June of 2012 despite the Dow Transports breaking out to new highs.  We talked about the relationship between the two in our Dow Theory series in November and the blue-chips will either follow the Transports or continue their breakdown.

The Dow will need to rebound into today’s close and into next week or there could be some real trouble coming.  The indexes are still hovering in the bottom of their trading ranges but the volatility this week could also be a prelude to what’s coming.

While we do have a few trades that could be affected by a pullback, other trades are doing well as we have got off to a fast start for 2014.  The Daily newsletter is 7-0 and the Weekly Wrap is 5-1.

We have remained patient during the recent 5-week trading range and we mentioned last week we could see a 3,000 point swing in the Dow this year.  This should not worry you as this type of action will make us an incredible amount of money if we get the moves right.

It is too early to say if the move comes to the downside or upside but remember it is just as easy to make money when there is a market selloff by using put options.

The chances the indexes remain in a trading range are good but like we have said, we will be well prepared if there is a continued selloff.

The Dow is down 175 points to 16,022 while the S&P 500 is lower by 24 points to 1,804.  The Nasdaq is declining 65 points to 4,153 and the Russell 2000 is off 21 points to 1,151.  The S&P 500 Volatility Index ($VIX, 16.06, up 2.02) is surging nearly 17% and has cleared 15.  If this level holds into the close, start flinching as we could have itchy trigger fingers next week.

We have a lot to cover today with our current trades, including a Profit Alert on a trade that is up 233%!  We will be back Sunday night with the Weekly Wrap and Monday morning with the Daily.  Until then, have a great weekend everyone!

Special Notice:  Our 2014 option trading manual, How to Trade Options on Momentum Stocks, is in production phase and will start to ship next week!  For everyone that upgraded to a 1-year deal through our special offer, you will be getting tracking numbers to let you know when the course will arrive.  Thank you for your patience and we really feel you will enjoy the tips the course has to offer to make you a better trader.

Bears Rest but Abercrombie & Fitch (ANF) Sinks/ Nasdaq Halted

Thursday, August 22nd, 2013

1:00pm (EST)

The bulls are trying to bounce back from their worst 6-sessions in more than a year as they try to hold today’s gains.  The technicians are saying the market is oversold and due for a rebound but aren’t bullish on the longer-term outlook.  In other words, the indexes remain at the bottom of their trading ranges.

We have been studying the charts all week while working on the Weekly Wrap and while today’s bounce is a feel good story, there is a chance for one more dip before a possible stronger rebound next week and into September.  The odds favor the bears of making a run at the June lows but it has been a losing bet to go against the bulls this year.  In any event, we have also been preaching this is a stock picker’s market and where fundamentals are starting to matter.

One stock we have followed for years, with terrible fundamentals, is Abercrombie & Fitch (ANF, $38.57, down $8.23).  We use to admire the company back in the early 1990′s and before they became a “teen retailer” because they made quality, outdoor clothes for men.  No skinny jeans or buffed up sales associates, just good, cool clothes.

The company has since lost its way and we have often shorted the stock or bought put options.  If you check our Track Records over the years, you will see we have had success (and failure) betting on Abercrombie’s earnings and we sure missed a good trade today.

Shares are down 18% after the company announced a terrible quarter and the put options are zooming.  The September 40 puts (ANF130921P00040000, $2.80, up$2.25) are up 400% and have traded to a high of $3.85!  These options closed at 57 cents yesterday and a 10-contract trade would have cost $570 before the close.  Today, we could have cashed out for $3,850 at the highs.

We do have a retail put option play already so we didn’t want to overcrowd our portfolio but we should have swung the bat as the teen retailoring stocks have been getting hammered.

Our current trade is up over 30% but could approach the same gains we just mentioned if shares tumble below $40.

As far as the indexes, the Dow is up 52 points to 14,949 while the S&P 500 is higher by 10 points to 1,653.  The Nasdaq is advancing 32 points to 3,631.

We have some other trades that are getting nice pops so let’s hit the Members Area.

Special Note:  The Nasdaq has been halted and is rerouting orders.  The talking heads are in a panic trying to figure out what is happening but no word yet.  Sounds like a flash crash coming or something has been hacked.  We have a trade we want to get into but realize everyone might not get filled.  We will wait until the Nasdaq gives the green light again and when they do, we could have a New Trade alert.

Bears Get Clean Sweep

Wednesday, August 7th, 2013

9:00am (EST) 

The bears came out of hibernation and did some damage on Tuesday as they cracked near-term support that had served as prior resistance.  The losses were less than 1%, on average, and were a minor pullback following last week and Monday’s rise to new all-time highs.  We said yesterday 1 day doesn’t make a trend but it was the second-straight session with lower or mixed action.

The Financial stocks were weak and Tech slipped along with the small-caps which have been the bull market leaders.  We also mentioned there would be some Fed talk late in the day and the 2 zombies that spoke have been hawkish on the stimulus package Ben Bernanke is running.  No need to bring up their taper talk comments but their gibberish held back the bulls from rallying off the lows.


If you are not a subscriber but would like to get more, real-time trades, please click here.  We are one of the fastest growing stock options trading advisors on the internet.  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 and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis.

Our 10 biggest winning recommendations in 2013 have been:


+104% Adobe Systems (ADBE) calls

+83% Caterpillar (CAT) put options

+206% Goodyear Tire (GT) calls

+146% Goodyear Tire (GT) calls

+80% Financial Spiders (XLF) calls

+108% Beam (BEAM) call options

+263% Regeneron (REGN) calls

+300% Solazyme (SZYM) calls

+173% Big 5 Sporting (BGFV) calls

+140% SolarCity (SZYM) call options

Market Slips on Nonfarm Payrolls Report

Friday, August 2nd, 2013

12:30pm (EST)

This morning’s unemployment figures were a little disappointing for Wall Street as most of the slick-talking pros had penciled in a rise to over 200,000 in the Nonfarm Payrolls report.  The “average” expectations were for an increase to 185,000 so the 162,000 print wasn’t too far off when looked at under the microscope.  The Unemployment Rate dropped to 7.4% but we keep reminding you this number is trending lower due to the number of people dropping out of the labor force.

We were quite happy with the report because a print north of 200K would have tapped more tapper talk and we could have gotten a bigger pullback, or perhaps a rally that may have faded.  With the moderate losses at the open, fresh support that served as prior resistance is holding and the bulls are trying to bounce off the lows.  We have seen weak opens on recent Fridays with a strong midday reversal so maybe we get a slightly higher close and would be the perfect setup for next week.

We have been on a nice streak since late May as we have closed out 9-straight winners for the Daily from our July trades and we are 21-out-of-27 (21-6) for nearly an 80% win rate since late May.  If you add the 10 trades we closed for the Weekly Wrap since May, we are 30-7, as that newsletter is 9-1 over the same time period.  These trades were mostly call options or stock trades as we urged our subscribers to stay long into May through July as the suit-and-ties sold in May and went away.  That theory didn’t play out this year and we made our year trading the action.

Now that we have entered into August and have broken out of a tight trading range that lasted for a few weeks, we expect the action to continue to be choppy but with more volatility.  This could lead to another leg higher for the indexes for another couple of weeks or a pullback on a break below near-term support.  Either way, we expect to be in the sweet spot.

We can’t wait to check the charts this weekend.  We will be hunting for New Trades and searching for clues on where the market is headed from here.  We have said all year long 2013 could be one of the best years ever to trade options and as volatility increases down the road, we plan on being there to play the wild swings higher or lower.

As far as today’s action, the Dow is currently down 28 points to 15,598 and a close above 15,600 would be bullish for next week.   The S&P 500 is lower by 2 points to 1,704 and needs to hold 1,700.  The Nasdaq is off 2 points to 3,673 and a close above 3,675 keeps 3,700 in play for next week.  The small-caps are declining 3 points to 1,057 and anything over 1,050 for a close would be bullish.

We will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily and for those of you who haven’t subscribed to the Weekly Wrap, you need to.  We have a small-cap stock that has cleared $7 again and once double-digits hit, shares may never see the single-digits again.

The company is undiscovered by Wall Street and we have been recommending the stock hand-over-fist since we discovered it near $4.  You can subscriber to the newsletter for just $97 for one month and we are pretty sure you will more than make this back if you lock this stock away for a few years.

Shares could easily reach $20 over the next 12-24 months if the company can execute on a tremendous rollout plan that will blanket the U.S. market with a solid new concept.  Shares are at $7.17, up $0.04, as we head to press and the 52-week high is north of $9.  The stock has no analyst coverage but will if their stores do well.

A few years ago we pounded the table for our subscribers to buy Imax (IMAX, $25.80, down $0.04) at $3 and before the 3D craze came along and shares reached $30+ at its peak.  This gem in our Weekly Wrap has the same potential.

It’s been a great week and we have some last minute updates before we roll and again, our Weekly Wrap comes our Sunday night so make sure you sign-up to get a great small-cap play.  Until then, have a great weekend everyone!

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    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.

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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

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