MomentumOptionsTrading.com Midday Update for 11/15/2013
Twitter (TWTR) Options Now Trading
We were looking forward to Twitter’s (TWTR, $44.20, down $0.49) recent Initial Public Offering (IPO) as a possible trade for our Weekly Wrap portfolio but we knew when the offering price kept bumping up our subscribers would get priced out. We were looking to get in for under $30.
The range moved from the mid-teens a week ahead of the offering to the mid-$20’s that week of the debut to the low $40’s ahead of the open on the first day of trading.
We aren’t sure if the volatility has created a shorting opportunity or the chance to go long because the chart is too fresh to get a good read. However, we do believe shares will be 10% higher of lower by mid-December and with Twitter options now trading let’s take a look to see if there is an opportunity to take advantage of this possible move.
A 10% move from current levels would push Twitter’s stock towards $50 or below $40. Since we are unsure on direction, we can use options to calculate if there will be a profit if one (or both) of these price targets are achieved.
There are Weekly options available on Twitter so we could use the November chains for a possible play but we want to give the trade time for the stock to make the 10% move.
The December regular options have 35 days before they expire so they would be our first choice for a possible trade.
The December 48 calls (TWTR131221C00048000, $1.40, flat) could be used as a way to play a run to $50. If the stock is at $51 by December 21 these options would be worth at least $3, or a double from current levels. If the stock is below $48 these options will expire worthless.
The December 41 puts (TWTR131221P00041000, $1.40, flat) could be used as a way to play a drop to under $40. If the stock is at $38 by December 21 these options would be worth at least $3 for a return of more than 100% from current levels. If shares are above $41 by expiration then these options would expire worthless.
If we priced both options together, the total cost would be $2.80 and if shares are above $51 or below $38 a strangle option trade would make a small profit but if shares make a stronger move to $53-$54 or $36-$35 by December 21, these options as a strangle option trade would make you 100% or more.
We won’t be taking any of these trades today but we could over the next week or two as we will add these options to our Watch list. We could take a swing at a Twitter trade using these options or another combination and if and when we do, you will be the first to know.
A quick peek at the indexes: the Dow is up 35 points to 15,911 while the S&P 500 is higher by 2 points to 1,793. The Nasdaq is up a point to 3,974. The Russell 2000 is lower by a point and is just above 1,110.
We would like to see 1,110 hold on the small-caps and Tech clear and hold at least 3,975 by the close. We have a lot to cover with our current trades, including a New Trade so let’s get on it.
We will be back Sunday night with the Weekly Wrap and Monday morning with our next issue of the Daily. Until then, have a great weekend everyone! Oh, and make sure you upgrade your current membership to the 1-year deal to get our best price and a free copy of our trading manual (an $895 value!).
Special 1-Year Subscription Offers – Guess the Dow, Win a NEW iPad!
It is that time of year where we offer our best discounts and our best deal on subscriptions to our Daily and Weekly Wrap newsletters. The reason we do this simple. It gives new traders wanting to learn the stock and options market and an incredible discount and seasoned traders the opportunity to receive all of our stock and option recommendations for an entire year without interruption.
To be a successful trader of the market, you must do your homework every day and every weekend. It requires 100 hours a week of hard work as you have to plan for events, draw charts, prepare for earnings, watch overseas markets, the political picture and to identify trends before they develop or how long they will last.
In fact, one of our favorite quotes from the history books when it comes to market survival:
“If you are ready to give up everything else – to study the whole history and background of the market and all the principal companies… as carefully as a medical student studies anatomy – … and, in addition, you have the cool nerves of a great gambler, the sixth sense of a clairvoyant, and the courage of a lion, you have a ghost of a chance.”
We are proud to say we are closing out our 6th-straight year of profitability and we doubt there are many option newsletters that can make this claim. If any.
We know to trade up, down, flat and volatile markets and we have proven ourselves year after year with twice Daily updates and a 6-year Track Record that profiles ALL of our trading recommendations. Most financial newsletters don’ have Track Records so how can you possibly trust them.
The option websites that promise huge returns only talk about their wins, not the losses. Some of them will count a winning trade twice if they recommended closing out half positions but that is a smoke-and-mirror tactic that hides the true overall performance of a portfolio and the percentages on if they were right or wrong about a trade.
We don’t roll that way and this is why many option newsletters have come and gone over the years. We could name names but the so called “pros” that aren’t around anymore hurt the market and investor’s trust.
It is one of the main reasons we have verified results through our auto-trading partners and why we have grown our relationships in the business. All of our trade recommendations are time-stamped and dated and with several auto-trading partners that take the trades for our subscribers. In other words, we are very transparent.
We do this to earn investors trust because we know people are skeptical and sometimes find it hard to believe you can make more in one option trade than most people make in a year. Seriously.
There is also the risk of one trade losing money and we always try to have 5-15 open trades at once. The key to successful option trading is riding the tend and taking quick profits on stocks that move 5%-10%.
When a stock moves 5%-10%, and sometimes 20%, the option gains can be 100%, 300%, and even 500%-800% in some cases.
We often hear the Average Joe can’t make money in the market but what we don’t hear is the reason they failed is because they didn’t do their homework. Luckily you have us and we enjoy what we do.
However, we do like to teach investors about stocks and the market because we believe everyone has the potential to manage their own money and to find there own trades.
We have written an option trading manual that explains how to become a successful option trader that includes bi-monthly videos. By taking charge of your financial investments it will empower you to learn the market in a way you never knew was possible.
Would you like to tell your friends about a $4 pizza stock that is now and $8 and could go to $20 over the next 12-24 months. You can if you are a member of our Weekly Wrap. Or how about telling your friends about an earnings trade that returned 200% in a day? Or a biotech that made you 400%. You can if you are a subscriber to our Daily.
You can also find these trades on your own by reading our option trading manual, How to Trade Options on Momentum Stocks and watching our videos. Here is a link that will describe the course benefits and what it covers:
The course is valued at $895 and will be included at NO CHARGE with your purchase of a 1-year membership to our Daily newsletter.
The regular price of a 1-year deal to the Daily is $924, a discount of 40% instead of of the $129 monthly price. If we knock that price down to $789, it will be a 50% discount and you will get our updated copy of the options trading course for 2014. The new manuals will ship in December and will be mailed to your doorstep at no charge.
Of you have a current monthly or quarterly subscription, you can upgrade as the discounted cost is just $65 a month! You will need this coupon code to the Special Offer (please copy and paste)
Coupon code: 9AD21
And go here for the 1-year deal (please make sure you choose the 1-year subscription option)
We are also offering our Weekly Wrap that is now an astounding 84-5 since inception with numerous triple-digit winners. This newsletter is for investors that may only want to trade 2-4 times a month instead of 4-5 a week for the Daily.
The Weekly Wrap is a “safer” way to play options as we use a mixture of different strategies to play the market. We have a Track Record of nearly 70% for all of our option trades but this newsletter has a 95% success rate!
You can save 50% on a 1-year deal to the Weekly Wrap by using this coupon code:
Please go here for the Weekly Wrap subscription:
This coupon works for all subscription models for the Weekly Wrap but not the Daily.
To encourage you to sign up for both newsletters for a 1-year deal, we are offering this bonus to all of our subscribers that do.
If you purchase a 1-year deal to both our newsletters, you will have the opportunity to win the newest version of the iPad!
In December 2012, we acquired NextOptions.com – a successful options website with hundreds of subscribers and thousands of readers. Our goal has been to get more coverage of our Weekly Wrap to give our research team the credit they deserve. The newsletter has posted an amazing 84-5 Track Record since 2011. We are 40-4 this year.
We offered NextOptions subscribers an incredible discount to stay with us through the transition and you have been well rewarded as we have doubled a $10,000 trading account this year for the Weekly Wrap. NextOptions subscribers, Thank You for your trust in us. Current Momentum Options subscribers, Thank You for supporting us from the start.
We use a mixture of covered calls and stock trading ideas to make solid double-digit monthly gains and we have recently added LEAPs, straddle and strangle options trades with possible returns of 100% or more. (A recent LEAP call option trade returned our subscribers 198%).
We also profile one company a week and we cover a bevy of possible earnings trades and where we get our ideas for our Daily newsletter. The Weekly Wrap contains the exact same official trade recommendations for both MomentumOptionsTrading.com and NextOptions.com so there is no difference between the 2 sites except for some of the Daily content.
We are also giving away one American Eagle Silver coin a month by guessing the Dow. Details are on the NextOptions.com website and it does not cost anything to enter but you do have to be a member.
As far as winning the iPad, once you have signed up for BOTH the 1-year Daily subscription and the 1-year Weekly Wrap you will need to have your entry on where the Dow will close at the end of DECEMBER by November 30, 2013 by midnight.
Emails need to be sent to support at either site.
– with the subject line “Dow iPad Guess”. We will also send you an email to verify your guess in case those of you have problems. You will need to enter 2 decimals as well to your end of year guess for the Dow.
For current MomentumOptionTrading Weekly Wrap readers, you can still keep your subscription with us but you will have to visit NextOptions.com to enter the monthly contest to win a shiny silver dollar. However, you cans still signup for the iPad contest and have the emails from MomentumOptionsTrading.com. All of the trades are the same and are released at the same times with updates as needed for both sites.
If you have any questions, please feel free to email or call us. We have added extra staff but please realize we will be slammed with this offer.
Please do us a favor and tell your friends about us and encourage them to use the special discount coupon code. Remember, your subscription should be a tax write-off (check with your accountant) so take advantage of the tax laws.
We also realize many of you may or may not support both sites and we do this to guarantee the best prices of the year.
You can also email us to view all of our Track Record results and here are some of the monster trades we have recommended over the past few months:
We have returned some incredible gains over the past 2 months and continue to provide the BEST options trades in the business. Take a look at these gains in September and October:
+213% OPK (LEAP) call options
+103% NPSP call options
+319% JCP put options
+182% NPSP (LEAP) call options
+67% KOG (LEAP) call options
+172% NPSP call options
+201% CRM call options
We hope you take advantage of this deal as it is the best time ever to get the best prices on our newsletters and to get prepared for 2014! As always, THANK YOU for your support. If you want to upgrade, email us and we will work out your current membership to help you take advantage of this offer!