2:00am (EST)
It seems like nothing can get in Apple’s (AAPL, $140.95, up $1.46) way. Despite a crummy Wednesday that saw the market give back some gains, Apple was doing its own thing and touched a high of $141.11. The market did show signs of life in the final hour of trading and Apple was volatile as bulls and bears fought over the $140 level.
As far as the June option strikes prices, this one is setting up to be a war between both sides. There is active buying as low as the June 125 puts (APVRE, $0.68, down $0.20) which traded nearly 20,000 contracts. For the call options, the June 150 calls (APVFJ, $1.56, up $0.23) traded 33,000 contracts. In fact, there are some investors that are day-trading these options right now.
I noted the action in the stock last Wednesday and even talked about the June 125 calls (APVFE, $16.60, up $1.50) which were trading at $10.75 at the time. Those were too expensive so I didn’t recommend them but I should have looked further out to see what the June 140 calls (APVFH, $5.20, up $0.65) were going for. At most, they may have been trading for $2 so that would have been an easy double.
The point is that shouldn’t have stopped you from looking for a trade. The June 125 at $11 would have cost you $1,100 per contract to buy. If you had planned on buying 10 contracts it would have cost you $11,000.
That is a lot of money to invest for a “speculative” trade.
Now, if the June 140 call options were going for $2, then 10 contracts would have only cost you $2,000 and 5 contracts would have cost you only $1,000. A $2,000 investment would have netted you $3,200 and would have grown to $5,200 in a week.
The reason I said the June 125 trade “was over” is because you would have gotten more bang for your buck if you had picked up the 140 or 150 call options. Although the June 125 calls went on to gain another 50% from last week, the real money was made going further out.
I couldn’t recommend the 140’s because of my restrictions in the blog. That is why we started the trading service. If you would have bought just 1 contract of the June 140 calls for $200, you would now have $520 in your account a week later.
Folks, these are the tricks we are going to show you and how to analyze a trade. And a trade like that easily covers your $97 monthly subscription rate. The response has been huge and I want to encourage all of my blog readers to sign up before the general public knows of the new site. Because of the demand, we may have to limit the number of subscriptions and this is the biggest reason I have been asking everyone to email me.
Also, the best value is the one-year membership where you save 30%! If we limit the numbers of subscribers we will have a waiting list. Those on the list will get added once a slot opens.
Read the following two blogs to get more information on the new trading service.
Note: Because I want to teach you how to find good trades and because the service has been a day or two late getting going, I wanted to throw this out there in case something good (or bad) happens with Dendreon (DNDN, $24.90, up $0.83). I was hoping our new trading service would be ready yesterday and hopefully today but I have been watching the July 30 calls (UQBGF, $0.80, up $0.17) and the August 30 calls (UQBHF, $1.47, up $0.32) all week. The August calls had a bid of $1.10 when I looked at them yesterday. I missed 50% by blinking and because of the launch and so did you.
The reason I’m mentioning this is because the stock looks poised to trade over $25 and would be within spitting distance of its 52-week high of $27.40. It’s funny, I just went to the company’s website a few weeks ago to get some investor information so I could read their annual report and maybe uncover something I may not have known about in their drug pipeline. The two aforementioned call options could make a run if Dendreon is indeed set to challenge its 52-week high. Biotech has lagged the market overall and has been hot this week…
So consider it another good faith trade in case we hit anymore snags. But watch for the move above $25. Again, if you are interested in our new trading service send me an email with the subject title “3 month, 6 month, or 1 year” and I will put you on the list.
One more thing. If you DO NOT have an option account or if you are not approved for options trading LEVEL 2, please email me and I will help you with the process. In the subject line please type in “NEW ACCOUNT” or “LEVEL 2 HELP”. Even if you don’t have an option account, you can open one with no money. My point is I want to help you get started so when you do have money to start, you will be ready.
Rick Rouse
Rick@OptionsMentoring.com
