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Weekly Wrap for 5/25/09

1. Commentary 2. What the VIX is Telling Us 3. IPO’s Showing Signs of Life 4. Earnings 5. Current Trades 6. Monday Morning Playbook 7. Closing Thoughts ************************************************** 1. Commentary The market started off strong last week as the Dow hit a high of 8,645 by Wednesday while the NasdaqRead more

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New OptionsMentoring.com Changes Coming Soon

We’ve got some exciting news to tell you about and some of the changes we are making here at OptionsMentoring.com. As you know, we started the blog a little over a year ago and its purpose is to educate our readers on the incredible opportunities that option trading can provide.Read more

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Just What the Doctor Ordered

12:30pm (EST) OceanFreight (OCNF, $1.88, up $0.09) had its 15-minutes of fame as the stock hit a high of $2.10 earlier this morning. I mentioned last night to look for an exit above $2 and we were right on point. The December 2.50 calls (QZVLZ, $0.65, unchanged) traded as highRead more

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Freeport-McMoRan Breaks $50

10:15am (EST) Freeport-McMoRan (FCX, $51.81, up $2.29) has been on a major roll since March and is up another 5% this morning. The stock is a frequent guest here in the blog and we have made some good trades in the past playing its options. I made a Watch ListRead more

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Wednesday Wake-Up Call

9:00am (EST) Cisco Systems (CSCO, $18.88, up $0.16) made a run over $19 as the July 19 calls (CYQGA, $0.98, up $0.10) hit a high of $1.20 yesterday. They opened at 61 cents on Monday. This was a covered call play but some of you may have bought them straight-up.Read more

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OceanFreight Reports Earnings

7:45pm (EST) Note: There was a problem with the Weekly Wrap sent out on Sunday night and I apologize if some of you received it late. We had a technical issue sending the newsletter out and some of you may have just gotten it today. The Weekly Wrap is postedRead more

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Looking at India

11:00pm (EST) I’ve gotten quite a few emails asking about India’s stock market (Bombay Stock Exchange) after it zoomed 17% on Monday. The index rose a staggering 2,110 points, or 17.3% to be exact, to 14,284, and triggered a temporary trading halt after the ruling coalition sealed a decisive electionRead more

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Lennar Gets An Upgrade

8:25am (EST) Before we started the blog, I was doing articles for OptionsMentoring.com and was fortunate enough to write about the collapse of AIG, Bear Stearns, Merrill Lynch, the housing sector and other high-flying names that came crashing to the ground. I say “fortunate” because it was amazing to watchRead more

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Cisco Systems Update

8:00pm (EST) Cisco Systems (CSCO, $18.72, up $0.80) had a super day as it added nearly 5% and closed near its high on Monday. I had talked about buying the stock and writing a covered call against the shares in the Weekly Wrap which would have lowered your cost basis.Read more

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ExxonMobil Back Over $70

12:45pm (EST) ExxonMobil (XOM, $70.55, up $1.44) made it back over $70 today and is looking strong. The June 75 calls (XOMFO, $0.50, up $0.18) are up over 50% but are still slightly below our entry price of 63 cents. Some of you emailed me over the weekend with entryRead more

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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.