MomentumOptionsTrading.com Weekly Wrap New Trade for 9/19/2013

12:50pm (EST)

We have a New Trade for our Weekly Wrap on a stock we feel can double over the next 6-12 months.

Shares are currently at $8.34 and the 52-week high is $10. The stock also trades options so we are going to sell near-term call options to lower our cost basis. We are also buying LEAPs (longer-term options) to play the move past double-digits.

The LEAPs we are recommending are trading for 75 cents and the breakeven point is for the stock to be at is $10.75 by next March 2014. If the stock is at $12, the options will be worth at least $2 and the return would be 167%. If shares reach $13, the options would be worth $3 for a return of 300%. If shares reach our $15 price target by then, the options would be worth at least $5 for a 567% return.

This means a $75 investment on one contract could be worth a nickel ($500) in Vegas slang, or $750 on 10 contracts will get you a cool $5,000. We love the odds and even on a run to $12 we would be extremely happy. We just wanted to show the potential this trade really has.

Subscribers, check the Members Area/ Weekly Wrap Premium section for the updates.

Comments are closed.

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Blog

MomentumOptionsTrading.com Weekly Wrap New Trade for 9/19/2013

CFTC Disclosure: