JC Penney (JCP) Offers 84 Million Shares,

12:15pm (EST)

We have been on a roll since early July (and all year for that matter) as we have closed 27 out of 34 winners. We have hit on nearly 80% of our trades over that time frame (70% for the year) and we have had 5 triple-digit winners, including: +135% on MGM call options; +175% on LYV call options; +146% on MSFT call options; +200% on CRM call options; and this week’s massive winner, a 364% return on JCP put options.

Shares of JC Penney (JCP, $9.53, down $0.89) were extremely volatile yesterday and we said to hold tight with the rest of our November puts as we have a near-term target of $8 for the stock. Concerns over if the company would raise cash or not came to fruition after the close last night as they try to raise $800 million to keep their stores open. Our November put options are currently up 227%.

As far as the market, the Dow is down 68 points to 15,260 while the S&P 500 is lower by 7 points to 1,691. The Nasdaq is off 3 points to 3,784 while the Russell 2000 is declining 3 points to 1,075. The S&P Volatility Index ($VIX, 14.89, up $0.83) has tripped 15 and is currently up 6%. This picture points towards a possible continued rally into next week but there is still another half of trading to go.

We will be watching the action into the close and while we doubt we will have a New Trade, we could have another Profit Alert depending on the action. There is also the possibility of a Weekly Wrap update ahead of the close as well, but if you don’t hear from us, we will be back Sunday night with the chart work and on Monday morning with a basket full of possible New Trades for our Daily.

We have said all month that the current environment has been incredible for option trading and we see that continuing into October which is historically, a very, very volatile month. Until then, have a GREAT weekend and cheers to a sweet week! Enjoy your profits and make sure you tell your friends about us.

Special Note: We often mention the talking heads and one of the few we like, David Faber, is celebrating his 20^th year on air today for CNBC. We have mad respect for that dude and a tip of the cap to his great reporting for 2 decades!

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

JC Penney (JCP) Offers 84 Million Shares,

CFTC Disclosure: