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Freeport-McMoran Stages Furious Comeback

We were whipsawed out of the Freeport-McMoran (FCX, $32.31, up $3.90) trade from last Friday when the stock dropped $4 yesterday. Naturally, I didn’t expect a 10% drop in the stock price when we bought the March 35 calls (FCXCG, $1.50, up $0.97) for under a $1. The calls tradedRead more

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News Flash: GE Opens Above $7, Now Below $6

We got a huge break with the General Electric (GE, $5.97, down $1.04) put options I mentioned last night. The March $7.50 puts (GEWOU, $1.57, up $0.52) opened at $1.03 and traded as low as 91 cents this morning. The April 6 puts (GEWPC, $1.16, up $0.31) opened at 82Read more

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GE Continues to Plunge

I knew General Electric (GE, $7.01, down $0.59) was in trouble when it fell below $10 a couple of weeks ago. Last week, we did a quick two-day trade in the March 7.50 puts (GEWOU, $1.05, up $0.25) where we got in at 55 cents and out at 70-72 cents.Read more

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April Call Option Watch List

Here are a few call options I’m watching. I have listed the options from March but we will probably not do anymore trades with the March contracts. The market is in the process of making new lows or is bottoming here at these levels. I’m not sure how the restRead more

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AutoZone Hits Historic Highs

As expected, AutoZone (AZO, $160.00, up $19.97) is trading at new highs after smashing Wall Street’s estimates. For the quarter, the company reported a profit of $116 million, or $2.03 per share, compared with $107 million, or $1.67 per share, versus last year. Revenue grew 8% to $1.45 billion. WallRead more

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Market at 12-Year Lows, What Next?

The Dow fell over 4% Monday and you could tell by the opening bell that we were headed much lower. Once 7,000 failed, the Dow found some support at 6,800 and that was the battle line going into the closing bell. The big number with the S&P is 700 andRead more

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VIX Moving Higher

Celgene Heads Lower

Celgene (CELG, $42.05, down $2.68) was the only thing that looked good this morning for a trade when the market looked poised to open lower. I listed a bunch of call options in case we got a rebound this morning but you could tell in last night’s Weekly Wrap theRead more

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Dow Looks Poised to Fall Below 7,000

Futures are trading substantially lower this morning following more bad news out of the financial sector. The Dow futures are down 113, S&P futures are down 16 while Nasdaq futures are lower by 18. As I mentioned on Friday, nobody wanted to go long before the weekend and here isRead more

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Weekly Wrap for 3/1/09

1. Commentary 2. “Covering” General Electric 3. Earnings 4. Closed Trades 5. Current Trades 6. Monday Morning Playbook 7. Closing Thoughts ************************************************** 1. Commentary The market is at a crossroad and after a week that saw the Dow bend but not break, we could get a clear direction this week.Read 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.