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RIMM Option Strangle Update

The market took Research in Motion (RIMM, $96.20, down $2.07) below $100 yesterday as the stock fell over $7 and is continuing lower this morning. The stock hit $110 earlier last Friday and we closed the October 120 calls (RULJD, $2.36, down $0.41) at $5.50. Two call options were purchasedRead more

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Dow Drops 500 Points

I’ve been calling for “the drop” for a couple of weeks now and yesterday could have been the start of a much lower market. The Dow fell 504 points, or 4.42% on Monday, its largest point drop since the September 11 attacks. The were numerous stories and subplots in yesterday’sRead more

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Lehman Brothers Files For Bankruptcy

After weeks of failing to attract a buyer, Lehman Brothers Holdings (LEH, $0.21, down $3.44) played its last card on Monday and it wasn’t an Ace. Instead, the 158 year-old folded and filed for Chapter 11 bankruptcy. In a last ditch effort to try and save the company, the governmentRead more

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AIG Plummets 60%, Put Options Up 885%

It was a bad day on Wall Street with the Dow dropping 504 points but it was even worse for American International Group (AIG, $4.76, down $7.38). The company said it would need $40 billion or more to fix its balance sheet and New York regulators gave AIG special accessRead more

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Close Call Options in RIMM

Research in Motion (RIMM, $107.14, down $2.20) is slightly lower as we head into the afternoon trading session. The stock hit $110 earlier this morning and I wanted to update the strangle option trade. Our exit target for the October 120 calls (RULJD, $4.45, down $1.05) was $5.50-$6.00 and thisRead more

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Merrill Lynch In the Teens

Merrill Lynch (MER, $19.43, down $3.87) shares were down again yesterday, falling 17% and hitting a fresh 52-week low of $18.50 in the process. The stock’s previous 52-week low was $22 and Merrill opened well below that at $20.68. The bears were all over Merrill as they take aim inRead more

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Lehman Under $5

Lehman Brothers (LEH, $3.99, down $3.26) is dropping another 45% within the first 30 minutes of trading this morning. Lehman did nothing yesterday to please Wall Street and looked baffled when reporting earnings. With no real “backup” plan or turnaround in place, the company reported a loss of $3.9 billionRead more

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Free RIMM Trade

Research in Motion (RIMM, $104.61, up $5.31) made a 5% move yesterday and hit a high of $106 after intoducing a BlackBerry flip phone. Wall Street liked the news because it means RIMM will have the phone ready for the holiday shopping season. The company will also debut the BlackBerryRead more

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Merrill Lynch Put Options Up 150%

On September 5, I mentioned Goldman Sachs (GS, $157.00, down $4.67) had downgraded Merrill Lynch (MER, $22.75, down $2.01) to a “sell” rating on concerns of more write-downs. Merrill Lynch is down another 8% this morning and our put positions are gaining momentum. The 52-week low for Merrill is $22.00Read more

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Google Slips Despite Good News

Google (GOOG, $418.66, down $1.29) succumbed to the market’s downfall despite some good news yesterday. We learned that Google’s new Chrome web browser is already making waves and a deal with NBC Universal had the stock moving higher right out of the gate but by the end of the day,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.