The market followed it’s normal pattern of trading in a tight range with both the bulls and bears doing more talking than fighting on the lightest volume day of the year. The good news is we only have another day of this before we could start to see some movement.
The Dow added 4 points to end at 13,107 after trading in a 63-point range. The high was 13,144 while the low came in at 13,081 for the blue-chips.
The S&P 500 was up a point and closed back above 1,410 by a half-point. The index tested 1,413.95 to the high side and 1,406.57 on the low end.
The Nasdaq advanced 4 points to finish at 3,081. Tech traded down to 3,067 shortly after the open but rebounded to kiss a high of 3,087.
Pandora Media (P, $9.97, up $0.12) held double-digits in extended trading last night after beating earnings expectations although the bottom line was another loss. The company reported a loss of $5.4 million, or 3 cents a share, for the quarter compared to last year’s same period rink ink of $3.2 million, or 4 cents a share.
Revenues were up over 50% to $101 million which is what kept shares from tanking to single-digits. The suit-and-ties were expecting a little over $100 million in sales and ad revenue. Another impressive figure was the number of listeners which has now grown to nearly 55 million
We have featured Pandora in our Weekly Wrap and recommended a covered call option earlier this year that made our subscribers 9% in 3 months.
A 9% return may not sound like a “big” gain but annualized it would net 36%. Considering savings and CD’s pay 1%-2%, we like our chances with covered calls which are a safer way to play options providing you own the stock as well.
We have put together another good week following yesterday’s closing of two “Half” positions which are currently showing gains of 236% and 58%. Our plan is working accordingly as we said we would like the portfolio to be light heading into the Black Hole on Friday.
We may also have more Trade Alerts and a possible New Trade for you this morning so be on the lookout for possible updates between 10am-11am.
As we head to press, futures are showing a lower open and look like so: Dow (-40); S&P 500 (-5); Nasdaq (-10). Subscribers, check the Members Area for the updates.