11:30am (EST) If you haven’t signed up for our new trading service, here is a sample of what you’re missing: Long time readers of the blog know I have talk about Marvel Entertainment (MVL, $37.31, up $0.48) on and off and in our April 28th issue of the Weekly Wrap I had this to say about the company: Marvel Entertainment is Marvelous (Quotes are from April 26th) “On Thursday, I gave regular readers of the blog a sneak preview on a Marvel Entertainment (MVL, $28.40, up $0.46) trade. We all know Marvel and the company is doing some good things. This Friday, the release of Wolverine is due out and I have already checked…demand is strong. Opening weekend tickets are selling faster than a Jay Cutler jersey in Chicago and you can bet when numbers are released, this movie will easily be number one. I’m not sure if it duplicates the success of Iron Man but the buzz is enormous. This play isn’t on the strength of Marvel’s balance sheet but on the momentum leading into next week. Analysts aren’t expecting a pop in numbers until 2010 as they have pegged a 50% drop in EPS (earnings per share) for 2009. However, Marvel will now launch the summer box office season for three years in a row, from 2010 through 2012 and there are a slew of blockbusters on the way, including Iron Man 2, SpiderMan 4, Thor, The First Avenger: Captain America and eventually, The Avengers. The box office receipts will be in the billions for these films and don’t forget the licensing fees, their publishing division, and its move into animated television production. And their character library remains virtually untapped. That is the future and if I bought stocks, I would buy Marvel if I wanted to own it for the next 5-10 years. I profiled the June 30 call options (MVLFF, $1.30, up $0.25) at $1.05 and I was looking for a 25%-50% return. The first part of that goal has already been met. I’m still like the trade but it is only a short-term trade. The company reports earnings on May 5th, which is Tuesday, the day after the box-office numbers are released. I would like to be out of the trade before the earnings announcement and see the stock make a run to $30 this week or the day the numbers are released. Stops are set at 50 cents for those of you who got in last week. If the calls trade lower, I like positions at original prices but confirm an uptrend before getting in.” – (END) We closed the trade on May 7th on this note (quotes are from that day): “We have to say goodbye to Marvel Entertainment (MVL, $32.95, down $0.07) for the time being. I love covering the options on this stock because they have done well for us over the past couple of years since I started here at OptionsMentoring.com. This time around we rode the June 30 calls (MVLFF, $3.80, down $0.20) for monster gains. I recommended the call options in the blog on April 23 when they were going for $1.05. After selling half at $2.10, we rode this magic carpet for a nice 300% gain and had set stops at $4.00.” – (END) Well, guess what folks? Those June 30 call options (MVLFF, $7.10, up $0.40) are now at $7! I guess the better strategy would have been to sell a half, a quarter, and maybe kept a quarter open, huh? Well, I won’t ever complain about a 300% return but I wanted to show you the power of options. I have a lot of new readers who say they only have a small trading account… Of course, these gains don’t happen all of the time but if you would have had Marvel on you Watch List you would have seen the same things I was seeing on the charts. The new trading service talks about things like this; setting up watch lists and chart reading. If you haven’t signed up I encourage you to do so. Even if you don’t trade options there are some great stock buys out there if you do your homework. Let me do it for you. If you are interested in our new trading service, send me an email. We are offering special introductory rates as follows: 1 month – $97 3 month – $261 or $87 per month (10% off) 6 month – $462 or $77 per month (20% off) 1 year – $804 or $67 per month (30% off) ***Best Deal* The Dow is back above 8,800 and is up 63 points for the day… Rick Rouse Rick@TheOptionInvestor.com Note: If you are a big fan of the Marvel movies, like I am, then check out the new pictures of Mickey Rourke as Whiplash in the upcoming Iron Man 2 due in May, 2010…]]>
