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Buybacks Picking Up

With a lousy market you can get lousy stock prices. At least that what a few companies are thinking. Although we had an 800 point rally to close the week, there are a few companies who feel like the market has given them the opportunity to buy back shares ofRead more

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Strangle Option Trades

When you trade options there are many routes you can take but one of my favorite trades to use in a really volatile market are the strangle option trades. The best part of a strangle option trade is that they have unlimited profit with limited risk. The strategy can beRead more

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Morgan Stanley and Wachovia Storm Higher

Ditto. The market is up ANOTHER 400 points shortly after lunch and for the week the Dow is actually positive. In a week that will go down as one of the most volatile we have seen in quite some time, the market has rallied in stunning fashion on more goodRead more

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Dow Rockets 4 Hunge

Is the VIX Headed to the 40's?

The Dow has fallen into negative territory once again after rallying over 200 points earlier this morning. Since its high of 11,800 at the beginning of the month, the Dow has fallen over 1,200 points with 800 of that coming this week. I’ve been mentioning the VIX (VIX, 37.74, upRead more

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Kraft Replacing AIG

Out with the old, in with the new. There will be a change in one of the Dow stocks as Kraft Foods (KFT, $33.31, up $0.66) will replace American International Group (AIG, $2.40, up $0.35) as one of the Dow’s 30 components. The change will take place next Monday. Well,Read more

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Morgan Stanley Too Good to Pass Up?

Morgan Stanley (MS, $18.10, down $10.60) is down $4+ from its opening price of $22.83 and $5 since my earlier blog. The opening price was nearly $6 lower from where the stock closed Tuesday. We are talking about a 35% drop in for a company that smashed Wall Street’s exceptations.Read more

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Update on Wachovia Call Options

I profiled a Wachovia (WB, $10.80, down $0.71) option trade yesterday morning shortly after the market opened when the stock was at $10.10. If you are not an option trader or are not in a position to follow the market during the day then it is hard to really getRead more

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Quick Hits

The market just opened for trading and here is what we’re following. The Dow is down 163 to 10,895 within the first minute and I can’t type as fast as it is falling. American International Group (AIG, $2.50, down $1.25) got an $85 billion bailout from the government. Morgan StanleyRead more

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Dell Falls On Weak Outlook

The market is taking no prisoners and continues to spread like “a blob” through all sectors. Gold, Energy, Financial, Housing and Tech stocks continue to get sucked up into the market’s downward pressure and the only question now is how low can we go? Dell (DELL, $15.98, down $2.01) onceRead 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.