The bulls are going for their second weekly win following a slight pullback in the first full week of February and are looking towards March to continue the rally. The bears have done their best to try and break the first wave of support but buyers have stepped-in and bought the dip all week.
Although trading has been choppy, the bulls are still pushing resistance and a close above our fluff targets could propel more buying. We have done some really good chart work over the past few months and the homework has been paying off.
We were able to close two more call option recommendations for our Daily publication which brings our 2012 track record to 27-3. Remember, we don’t count “half” profits twice like some option publications do and none of them have come close to matching our start for the year.
We also had a big trade go our way for our Weekly Wrap as Vivus (VVUS, $20.17, up $1.44) doubled for the week after getting pre-approval for its obesity drug, Qnexa. Many of you have written to us over the last few days to thank us for our research as we told you we had a good feeling the FDA advisory panel might give the drug the thumbs-up.
Here is how the trade looked last Sunday in our Weekly Wrap, along with the chart work (quotes from 2/17/12):
Vivus (VVUS, $11.99, up $0.81)
March 15 calls (VVUS12031700015000, $1.45, up $0.10)
Original Entry Price: $12.60 (1/12/12)
Lowered Price from Selling Options: $10.85
Exit Target: $15
Stop Target: None
Action: Shares will move big-time this week so expect volatility.
Vivus dipped to a low of $10.12 last Thursday on news of its upcoming FDA meeting this week which made some investors nervous. The 20-year chart shows a run to $15 on good news and a recommendation to the FDA panel and $20+ on approval of its obesity drug, Qnexa, down the road. However, any negative news could knock shares back below $10 or even $7.50. It is a 50/50 chance this week on which way the news goes so if you don’t want to stay in the position, you could buy the call option back and sell the stock. We are going for an approval recommendation so we are going to stay in the trade.
Here is another chart for Vivus from the beginning of the month:
As you can see, we maintained our “Buy” rating on Vivus when others Wall Street pros were waffling and said the drug wouldn’t make it to market. We said it could be a multi-billion dollar jackpot for the company and that Qnexa wasn’t the only drug Vivus has in its pipeline.
Of course, we don’t do TV or grant interviews so only our subscribers knew the real deal with Vivus and we thought we would show you how our trades look for the Weekly Wrap.
Our current Vivus covered call trade will return nearly 40% but it will be the fifth time we have recommended the stock for our Weekly Wrap. The average return for the other four trades was 20%, and our total return since last May was nearly 120%.
We have also combined our winning 2011 recommendations (16-0) and our closed trades for 2012 (12-0) into one spreadsheet to show you how we have turned a $10,000 trading account into nearly $15,000 with these 28 trades. The return is 46% thus far and we could have another 10 winners in March. If you are a current subscriber, you can view all of our portfolios in the Members Area. If you are not yet a subscriber, you can request our track records in PDF format to see for yourself.
We also have auto-trading partners who can process the trades for you as we have decided to add the Weekly Wrap, along with our Daily, so that you will never miss a trade or a Trade Alert.
Don’t forget we are running one last special for the Weekly Wrap. After this weekend, that’s it and it will be your last chance to sign-up for an incredible deal.
You can sign up for a one-time 3-month membership to our Weekly Wrap newsletter for only $129. This is a 50% savings off our regular subscription price and averages out to just $43 a month. Use promotion code A0FB422004. Please associate with Weekly Wrap 3 month Subscription (Reg. $261).
3-month Weekly Wrap membership – $129 – use coupon code A0FB422004 and go here:
We have a lot to cover in our Members Area including our new trade that was filled at the open. We will be back Sunday night with our next issue of the Weekly Wrap and Monday morning for the daily. Until then, have a great weekend, everyone.