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Earnings: COST, KKD, LULU and a Nike Trade

Costco Wholesale (COST, $53.37, down $0.32) is recovering from its morning low of $50.70 after reporting a 1% gain in same-store sales for the quarter. The company earned $263 million, or $0.60 a share, compared with $262 million, $0.59 a share, a year ago. Revenue came in at $16 billion,Read more

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Market Flat Despite Unemployment Claims

The market has managed to hold its own despite an unexpected jump in the number of people filing for unemployment. New claims for jobless benefits rose to 573,000 from an upwardly revised figure of 515,000 in the previous week. That knocked the socks off Wall Street which was far moreRead more

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When To Sell

You never want to sell too early when you have a monster option trade in progress. Sometimes when you catch a wave and turn a small amount of money into a big amount of money your emotions will try and get the best of you. When you take a $1,000Read more

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Yahoo Shareholder Urges Sale

Yahoo (YHOO, $12.83, up $0.64) is trading higher this morning after one of the company’s largest shareholders has made a plea for the company to pursue a sale of its search unit to Microsoft (MSFT, $20.77, up $0.17). Ivory Investment Management owns a little over 21 million shares of Yahoo,Read more

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Ford And General Motors Get Wish

After rubbing the genie bottle for weeks, the auto companies will likely get their wish finally granted to them. The market has opened higher after reports that the White House and congressional Democrats have finally reached an agreement in principle on a $15-billion bailout plan. Shares of Ford Motor (F,Read more

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DryShips Continues Push Higher

Trading just got underway and DryShips (DRYS, $8.75, up $1.58) is surging another 20%. I mentioned the stock yesterday morning and how the bulls were pushing the stock higher. Some of this may also be short-covering as DryShips has gotten hammered so low that the shorts are now being forcedRead more

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Market All Smiles

The market powered higher on Monday following news that President-elect Obama will increase infrastructure spending to lift the economy once he takes the keys to the White House. The Dow blasted though the all-important 9,000 barrier but closed slightly below this level. Still, its 300-point gain to 8,934 put theRead more

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DryShips Up Sharply

The bulls seem to be getting behind DryShips (DRYS, $6.50, up $1.75) this morning as the stock is rallying 40%. Shares are down from an all-time high of $116 as dry bulk rates have plummeted over the past few months. In early September, we did a strangle option trade onRead more

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Ford and GM In Play

Ford (F, $3.20, up $0.48) and General Motors (GM, $5.06, up $0.98) both opened higher this morning as hopes of a bailout continue to get lifted. Although there will be strings attached it now appears the auto companies could get a life-line of $15 billion to start with. However, oneRead more

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Weekly Wrap 12/07/08

The market returned to its “normal” ways after a see-saw week in which the Dow had three up days and two down. Normal meaning volatility. After a solid winning streak to close November above 8,800, the Dow struggled to hold 8,000 and finished Friday at 8,635. All things considered itRead 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.