12:45pm (EST) IBM (IBM, $106.47, up $3.22) has been strong all day and we have some decent gains in the two trades I profiled this morning. The IBM July 105 calls (IBMGA, $2.55, up $1.55) opened at $1.65 and were right there 15-20 minutes later. The trend was confirmed and it was a great entry point for those who may have taken the trade. If you bought just 10 contracts, you are looking at nearly a $1,000 profit in 3 hours! If you had bought 25 contracts, you are looking at a massive $2,500 profit. The August 105 calls (IBMHA, $4.00, up $1.35) opened at $3.10 and were at $3.40 shortly after the opening bell. Another good entry point. Now, remember, IBM will report earnings on Thursday and these trades were only for today. I think IBM is going to do well for the quarter but you run the risk of giving back your profits, especially with the July 105 calls. If you want to swing for the fences, take your profits and maybe leave a little on the table. If IBM can pull some magic and trade up to $110 by Friday these calls will be worth $5. That is asking a lot but IBM is capable of making a 10% on Thursday (up or down) so make sure you make some money before you go gambling. It has been such a good day, I’m trying to be cautious with my new readers. If you had any luck with today’s trades or even the Bank of America (BAC, $13.44, up $0.53) trade, send me an email… Rick@MomentumOptionsTrading.com]]>
