The market is struggling today but the major averages are holding the support levels we mentioned this morning. The Dow is currently down 36 points to 10,400 while this S&P 500 is off by 3 to 1,107. The Nasdaq is down 16 points to 2,188.
Of course, there are a few stocks that a making some nice moves today.
We were calling “double-digits” for Ford (F, $9.01, up $0.03) back in July when shares were under $8 and said it would be a $10 stock by year-end. We were able to get our subscribers in-and-out of the August 7 calls for a 67% profit in a week. Ford fell below $7 by September and we knew the rebound was coming but we are trying to avoid trading options on stocks under $10.
Ford seems to be the best of breed in the American auto industry and they are doing a lot of good things right now. And remember, they didn’t take money from the government and they didn’t go belly-up. It seems Found On Road Dead don’t mean Jack…
Story telling time…
We were thisclose to pulling the trigger with a trade on Bunge Limited (BG, $62.16, up $3.27) this morning but we hesitated. We already have a trade on in Colgate-Palmolive (CL, $82.51, down $0.33) so we didn’t want two trades going in the same sector. Bunge is active in the agriculture and food business and have their fingers in a lot of pies worldwide. Agriculture has been HOT today…Monsanto (MON, $79.02, up $1.69) and Potash (POT, $114.11, up $3.51) are smoking green as both stocks are up over 2%.
Back to Bunge though. The stock is currently up over 5% and we constantly remind option traders, especially new ones that if a stock moves 5%, you can make over 100% with the right option. Want proof?
At 9:45am this morning, 15 minutes after the market opened, the Bunge December 65 calls (BGWLM, $1.90, up $1.30) were trading for 70 cents or so. They opened at 67 cents and the volume showed up on our option scan. If we sent the trade out we would be writing you three hours telling you to take a 200% profit. Folks, think about that. You can look this quote up and see where it opened and where it is currently trading. This is the power of options and this is the type of trades we target.
The birds were chirping this morning but they didn’t get the worm…
The point is that we have been fielding a lot of questions about our website because we are new and fresh. We know of no other website that actually posts all of their trades (winners AND losers) for the public to judge. After all, the devil is in the details, right?
This has been our mission from the start here at MomentumOptionsTrading.com and that will not change. What will change is our exposure as more investors and traders find out about us.
Remember our promise is to limit our subscriber base to 1,000 people and once we hit that number we will no longer take new ones. There will be a waiting list. Again, we don’t want our trades crowded. Although there are a number of stocks that trade thousands and thousands of options we are also trying to TEACH option traders.
We will be back in the morning with the trade updates and possibly another NEW TRADE!