12:50pm (EST) The market is struggling today as it has darted in and out of positive territory. Jobless claims dipped to 545,000 last week from an upwardly revised 557,000 the previous week which helped stocks recover from the open but it appears the bears are selling the news and trying to push the market back into negative territory. Currently, the Dow is down 9 points to 9,782. Despite the choppiness, we have quite a few trades that are doing really well today. Dendreon (DNDN, $28.75, up $1.94) has broken out to 52-week highs and the Dendreon call options have now doubled. Subscribers who took the OPTION trade on August 31st are now up 140%! I don’t watch much TV because they can influence your habits but somebody emailed me this morning and said Cramer said “Don’t Buy” this stock. The last time that dude said “Don’t Buy, Don’t Buy, Don’t Buy” Dendreon was back in April when the stock was under $5. We were in an option trade that went on to return our subscribers 2,500%. I doubt the current trade returns as much but it is one of the reasons I don’t follow the talking heads. Cramer has no clue on this company and he has been wrong since $5. Apple (AAPL, $185.42, up $3.55) continues to roll and has hit a high of $186.79. If you got into the call options that I recommended yesterday, sell half today. Freeport McMoRan (FCX, $71.53, down $0.61) is backing off that $72-$73 resistance area I have been talking about. The stock traded to a high of $72.95 and you should have closed half of the position yesterday when the call options hit our exit target. I still think Freeport is going to report a blowout quarter. International Business Machines (IBM, $121.87, up $0.05) opened lower and we got some great entry prices for the option trade I profiled this morning. In fact, we couldn’t have played it any better. The call options traded as low as 55 cents shortly after the opening bell and are currently at 75 cents. Palm (PALM, $14.25, down $0.41) reports after the bell. This is not a trade but I want to show you how people are speculating on the earnings report. The September options expire on Friday and here is the battle taking place. The Palm September 14 puts (UPYUN, $0.78, up $0.23) have traded 16,000 contracts while the September 15 calls (UPYIC, $0.50, down $0.10) have also traded 16,000 contracts. This could be a good trade if Palm moves 15%-20% on Friday because one side would offset the other. However, I am staying away from this one, and besides, we are already in Apple and have made some great returns. Apple should continue to prosper either way… I’ll be back in the morning with the trade updates. Rick@MomentumOptionsTrading.com]]>
