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UAL Hit By False Bankruptcy News

And yet another reason never to buy an Airline stock. One of the best pieces of advice someone ever gave me when it came to investing was to never buy airline shares. Not that I ever would have but when I asked why, they said “because they always go bankrupt.”Read more

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Fannie and Freddie Under a Buck

Fannie Mae (FNM, $0.73, down $6.31) and Freddie Mac (FRE, $0.88, down $4.22) did their best Enron imitation on Monday as both stocks plunged to under a dollar. Sure, the government bailout was huge for the market but check out the true winners from yesterday. The Fannie Mae September 2.50Read more

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RIMM at $100

Research in Motion (RIMM, $100.90, down $6.05) is trading lower after opening the morning at $111. The volatility has picked up over the past few weeks after the stock made a run from $119 to $135. At the end of July, I mentioned that the company had three new phoneRead more

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Mergers and Acquisitions

There has been a slew of takeover offers or ones in the works that I wanted to mention this morning. There may be one or two option trades worth researching but the easy money has already been made. However, it is still nice to see the M&A activity picking up.Read more

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Market Looking to Rally

The market ended the week with losses across the board despite starting off with huge gains. With hurricane Gustav slowing down and not wrecking havoc on the Gulf, we were off to the races on Tuesday. Oil and commodity prices were dropping and at one point the Dow was upRead more

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NewsFlash: Fannie and Freddie Rescued

It’s official. It what was the worst kept secret on Wall Street Friday after the market closed, the government finally bailed out beleaguered mortgage giants Fannie Mae (FNM, $7.04, up $0.62) and Freddie Mac (FRE, $5.10, up $0.15) on Sunday in a move that came much sooner than anyone anticipated.Read more

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DryShips Revisited

DryShips (DRYS, $58.47, down $3.06) has plunged through $60 and I wanted to update the trade from August 25. I mentioned quite a few stocks within the sector but targeted DryShips as a strangle option trade. This option strategy is created when you buy both a call and put withRead more

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Merrill Lynch Downgraded to Sell

Seems like someone on Wall Street doesn’t trust Merrill Lynch (MER, $25.45, down $0.76) either. The stock is down 3% after a downgrade out of Goldman Sachs (GS, $159.34, down $1.56) on concerns of more write-downs. We’ve been all over this like grass on dirt over the past few monthsRead more

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Market Drops Nearly 350 Points

It was a rough day for the market as all three indexes posted huge losses after a flurry of bad economic news. The retail report was lousy although Wal-Mart (WMT, $59.78, down $0.01) held its own. The stock hit a high of $60.89 and was challenging its 52-week high ofRead more

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Potash In a Freefall?

If a stock drops $90 from $240 to $150 in 2 1/2 months is it a buy? That’s an open-ended question of course but if the same stock made a run from $85 to $240 within a year and now sits at $150, you would at least have a lookRead 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.