1:15pm (EST) The market was off to a good start until the Chicago PMI number hit Wall Street. Economists were expecting a reading of 52 for September and we got 46, down from 50 in August. The Dow had been up over 20 points to 9,764 but quickly fell to a low of 9,608, or a 130+ point loss. Currently the index is at 9,724, down 18. As you can imagine, the action has been choppy to say the least. Of course, one stock that is having an outstanding day is Nike (NKE, $64.82, up $4.73). We went long on call options in Nike yesterday in the 1pm Update in the Members Area and I had talked about the stock in both of Tuesday’s updates. The company’s slogan is “Just Do It” and subscribers who “Did It” have banked nearly a 200% profit on the call options that were profiled. I said yesterday that the option market was pricing an 8%-10% move for the stock and sure enough it was right on. I will update the trade in the morning because we don’t have the final closing numbers but make sure you set stops at $4.50. Our entry price was $1.60 and we had initially set stops at $2.75 this morning. The call options I profiled are currently at $4.90 which is officially a 197% gain from $1.60. Just think, a 10 contract trade would have cost around $1,675 yesterday and would be worth $5,ooo right now. Nasty. Nasty good that is… The call options easily zoomed past that so we are safe and we can easily lock in profits from here on out. Also, you can sell half now or let the $4.50 stop take you out of the trade entirely. Research In Motion (RIMM, $68.52, up $0.88) is bouncing back today following last week’s sell-off. I’m not ready to make a call on where the stock goes from here but it is getting interesting. Also, I’m looking at a couple of trades today and doing some more research before releasing them. They should be ready in the morning. Rick@MomentumOptionsTrading.com]]>
