by Steven Sarnoff
It’s been said that trading is like flying an airplane, “Hours of boredom with moments of terror.” Market action may sometimes feel frenetic, but Options Hotline subscribers use a strategic game plan for each trade to smooth turbulence and steadily stay a step ahead of the crowd.
Today’s early market movement is a good example. Catalonia declares independence from Spain and Madrid opts for direct rule, bond yields are rising again, Tech stocks are amped up on earnings, domestic and geopolitcal tensions simmer. But it’s a market of stocks and within the market, some go up and some go down.
Options provide a powerful tool for you to profit from moves in both directions. Put buyers seek to profit from a fall in price and call buyers seek to profit from a rise in the price of the underlying stock. This was demonstrated today, as I sent our subscribers email Profit Alerts on two of our recent recommendations, TripAdvisor heading south and Cheesecake Factory sweetening. Coincidentally, both had the same strike price and both were the subject of a blog post earlier in the week (see $TRIP on 10/23/17 and $CAKE on 10/26/17).
As each moved toward its target, we calmly made our exit.
The TripAdvisor November $40 put went from $245 on 10/2/17 to $450 on 10/27/17, +84% in less than a month.
The Cheesecake Factory January $40 call went from $290 on 9/18/17 to $590 on 10/27/17, +103% in a little over a month.
Importantly, our readers booked these gains with an always known and strictly limited risk!
That is the power of Options Hotline.
If this is the type of options action you are looking for, subscribe to see how we turn small stock moves into great options gains and stay a step ahead of the crowd.
Let me know if you have any questions and good fortune in your trading.