Tuesday's Tidbits - I'm Back, Folks - Momentum Trades : Momentum Trades

Tuesday's Tidbits – I'm Back, Folks

9:20am (EST)

Time sure does fly by when you are on vacation. Good food, great music, and super people. Jazz Fest in New Orleans lived up to its billing as “one of the best times” you will ever have if you love music. Enough said, time to go back to work…

I did manage to find 7 minutes to take a peak at Wall Street and it looks like the market managed to hold its own. There are four trades that I left you with and I will update each one of them sometime today. I’ll start with one this morning and go from there.

ValueClick (VCLK, $11.00, up $0.52)

May 10 calls (QCSEB, $1.25)

Entry Price: $0.75 (4/9/09)
Exit Price: $1.50 (open)

September 12.50 calls (QCSIV, $1.10)

Entry Price: $0.80 (4/9/09)
Exit Price: $1.60 (open)

It looks like my wish was granted for this trade. ValueClick did manage to hold $10 last week and although I wanted the stock closer to $11, we got that with yesterday’s 5% jump. ValueClick reports earnings TODAY after the bell so close the May call options today. We were targeting $1.50 but lets take the risk out of the earnings announcement. It might also be a good idea to close half of the September calls as well.

Looks like some profit-taking will hit the market this morning as futures are pointing towards a lower opening.

Rick Rouse
Rick@OptionsMentoring.com

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GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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