1:10pm (EST) First Solar (FSLR, $116.89, up $1.80) has been all over the map today but we took advantage of this morning’s dip to $112. Here were my thoughts for our subscriber from this morning: “Well, I put my money where my mouth was. I entered a long position today at $1.25 and I spelled out my plans in the original trade write-up. I’m looking for a run to $1.85 or even $1.75 which would return $500 for every 10 put contracts you own. So here is the game plan. The stock was down another 50 cents in after-hours trading and touched a low of $114. If the stock OPENS lower on Wednesday when the opening bell rings, close the position. I normally don’t buy options right after the market opens because the sharks can really eat you alive and premiums can get inflated. However, sometimes it is okay to SELL (or close) a position into strength. In this case, we are hoping for more downside for First Solar. If we can get below $114 then these options should easily hit our target.” (END) The September 100 puts (QHBUT, $1.20, down $0.30) traded to a high of $1.89 this morning which was right where our target was. Out entry price was $1.25 so if you got out at $1.85 your return was 48%. It was a good omen to the start of our trading service which went live yesterday. Remember, to get any new trade recommendations and an in-depth look as to why we like an option trade you must be a subscriber. I still like these put options but the trade is over. I had mentioned this was going to be a quick trade and our subscribers were in and out in less than 24 hours. If you have a game plan going in it takes all of the emotion out of trading. With the market trying to find its way we are still in a trader’s market…and that means tighter stops and quick entry and exit points. Once we develop a trend we should be able to get better returns with longer time frames. For now, we have to take what the market gives us. Friday will be a BIG day as we get the unemployment numbers. I’m not sure which way the market will go after the figures are released but I have penciled in a huge move before the holiday weekend. The bulls will be back from summer vacations next week so we will see if they are buying or selling. The bears are trying to hold this week’s momentum and will pounce on an awful unemployment number. Rick@MomentumOptionsTrading.com]]>
