Looks like we missed the Walt Disney (DIS, $30.38, up $1.33) trade…
One of the best things about trading options on stocks you follow is that once you get a “feel” for the way shares trade, it gets easier in trying to find successful option trades. And it means both call and put options. Hey, stocks are like one-night stands. Sometimes you love ’em, sometimes you hate ’em…
Well, we had loved some Disney when we recommended going long on a call option trade that netted some of you 70% if you had taken our trade recommendation. Back in September we liked Disney as a seasonal play and here were our thoughts at the time:
“For the past 4 out of 5 years, Disney has traded higher from September thru October and I was looking at the October 26 calls (DISJZ, $1.60, up $0.35) on Tuesday morning when they were at 90 cents. That trade has done well in two days.
The October 27.50 calls (DISJY, $0.75, up $0.15) traded at 50 cents on Wednesday and will do well if Disney is headed to $30.”
Well, to make a long story short, we profiled the trade, hit our targets and then suggested closing the trade for a 70% profit. By now you should know that the company also acquired Marvel Entertainment (MVL, $52.22, up $1.10) so we thought this would put a lid on Disney’s stock until the deal officially closed. Today’s breakout has us jealous…
We said the Dow could be stuck in a trading range and in the Sunday night Weekly Wrap we listed a top of 10,300-10,400. For the S&P 500 we said 1,100 could be the proverbial “brick wall”. We would normally step in and maybe buy some put options here, but it is Friday, we are at the top of both those ranges, we had a GREAT week so we don’t want to push it. Right?
Wrong. Current subscribers, check the Members Area for the Netflix (NFLX, $58.47, up $0.28) trade updates.
Before we go…a quick update on the Momentum Options Trading Manual. We are shooting for a December 15th have-ready date and we are taking advanced inquiries on whoever is interested. Our special introductory rate will be $2,495 but include a FREE one-year membership to our website and the Members Area. This is a $924 value.
The reason we are doing this is simple. Our promise to you was to limit our subscription base to a 1,000 people and we will. We have to do this so our trades don’t get “crowded” and so that we can teach you how option trading really works.
This is a special introductory rate so once our subscription base is full you will only be able to buy the manual(s). The price will be $2,495 without a one-year membership. We wanted to offer the one-year FREE membership so that you can go through an entire year of following the market.
We have been in a bull market since March and who know how long the rally continues? Our point is that we want you to witness both bull and bear markets so that in the future you will be able to find your own trades. Of course, some of you may not want that and would just rather prefer our option trade picks which is fine too. But, once you learn how to trade, you will find that it is one of the funniest things in the world to do.
We will be back Sunday night/ Monday morning with next week’s market news so until then…have a GREAT weekend!