12:50pm (EST)
Futures were strong throughout the night and were showing a nice recovery following Thursday’s selloff but they were cut in half before the open on Wall Street suggesting further downside risk. We have seen huge opening pops fade and the rebound turned into a hiccup as the indexes are trading lower entering the second half of trading.
It has been one of the most volatile weeks in years and while much of the blame has been pinned on Bernanke, we mentioned at the start of the week that June Quadruple Witching week chad the potential to be volatile.
Despite the chaos, we have done well trading the panic and chaos and we have done even better on calling the market’s every move. We have nailed the breakouts to new highs from January thru May and the recent June trading range to this week’s breakdown. We have also been spot on in calling for Gold and Silver’s tremendous drops and how the VIX could test 20+.
We have been super hot for the past few months and we have said the current environment to trade options is the best we have seen in years. Our Daily publication has been on a roll since late April as we have closed 24-out-of-28 winning trades and the profits have been staggering. During our 24-4 run, our subscribers have banked 9 triple-digit winners over including these incredible gains:
+300% on SZYM
+140% on SCTY
+173% on BGFV
+263% on REGN
+108% on BEAM
+206%, +100%, +100% on GT
+104% on ADBE
We also had four 80% winning recommendations and the rest were solid double-digit winners.
Our Weekly Wrap Track Record is now an amazing 23-2 this year. The publication is a close to perfect as we could get and now has an astounding 67-4 win/loss record since the start of 2011. We could be closing 2 more double-digit winning trades today for the publication that would get us to 25-2 for the year but it will depend on the close and where these stocks are at.
We did some early homework ahead of the Weekly Wrap to get a look at additional downside targets before the current 2-year uptrend is broken. As you will see in this weekend’s charts and what we talked about this morning is that there is risk down to 14,000-13,800 on the Dow; S&P (500) 1,525-1,500; Nasdaq 3,200-3,175; Russell (2000) 900-875.
We are in a PERFECT position to play a continued breakdown, or, if support holds at the 100-day MA’s (moving averages) there could be a massive rebound over the near-term. With 2Q earnings coming up in July, we plan on being extremely busy with many more triple-digit opportunities on the horizon but we also need to get the clues to confirm the next trend.
The key point we want to make is that you can make just as much money in put options and playing a decline in the market as you can with call options in a bull or up market.
We are excited about doing our homework this weekend and we will have a ton of new trades on our Watch List to play the market’s next major move. If there is a continued slide, we will have some juicy put options for you to play and if the is a return to new highs in July, we will use call options.
Our 2013 portfolio for the Daily is up an amazing 117% at current levels and we doubt there is an option service that has outperformed us this year. Our subscribers keep track of the competition and we often ask new subscribers where they have come from and their results. You can email us to get a complete list of all of our closed trades for 2013 if you would like to see for yourself.
While we won’t throw any of the “underperforming” option newsletters under the bus, we can tell you we have hit on 70% of our option trades for the year and for the past 5 years we have been successful on 70% of our trades. ALL of our trades are verified through our auto-trading partners and each Daily and Weekly Wrap update is dated and time-stamped. We also DON’T count closing half positions twice or three times like some option newsletters do to pump up their track record, if they have one at all.
We say all of this because we want to keep you for the long haul and we don’t want you to get nervous during these high times of volatility. We have been diligent with our homework, every week, every year and why we are considered one of the best option trading newsletters in the business.
We have some last minute updates for our current trades and like we said, our Watch List is exploding with possible new trades to play what could be one of the best summers ever to trade options.
As we head to press, the Dow is down 51 points to 14,706 while the S&P 500 is lower by 6 points to 1,581. The Nasdaq is declining 26 points to 3,338. Subscribers, hit the Members Area for our last minute thoughts ahead of the weekend.
We will be back Sunday night with the Weekly Wrap and Monday morning with the Daily. We will be watching the close and if there is any action to take, we will send out a Trade Alert. Until then, have a great weekend, everyone!
