Going to a GOGO!

GOGO chart

Chart by Steven Sarnoff, h/t stockcharts.com

OPTIONS HOTLINE Reco Update, FYI:
+53% in 1 week on GOGO calls!

With apologies to Smokey Robinson and to the Rolling Stones, our recommended option play this month was emailed to subscribers on October 1st.

The GOGO December $10 call triggered 10-01-20 at $1.70, closed 10-09-20 at $2.60, +53% in a week, with an always known and strictly limited risk!

As you can see from my daily candlestick chart above,  GOGO shares look ready to get going and go higher. 

Friday’s strongly positive red candle (open low, close high) implies the likelihood, but not the certainty, of a continued move up.

Underlying support is now at $9.00-$10.54.  Resistance is at $12-$13 and $15.

When it was triggered, GOGO was at $9.65 and the December $10 call option had no intrinsic value, its price was only for time and volatility.  Each $1.00 above $10 for GOGO shares gives each $10 call option another $100 (because each option is for 100 shares) of real value in addition to any time value. If GOGO is at or below $10 on the third Friday in December, the option will expire worthless.  That is the risk.

Risk is limited but it’s high, as it should be for the opportunity to earn high returns.  Only speculate with money you can afford to lose.

I can’t guarantee that all my recos will go like GOGO, but I do promise to continue to my best to find option winners for you.

Since 1989, we’ve been helping our readers practice sensible speculation.  Subscribe to Options Hotline today to stay a step ahead of the crowd.

Let me know if you have any questions.  I always enjoy hearing from you, even when you tell me my picks are crazy.  Our email never sleeps.

Stay safe!

Best regards,

Steve

Oil Slide

Exxon chart

Chart by Steven Sarnoff, h/t stockcharts.com

OPTIONS HOTLINE Reco Update, FYI:
+126% in 2 months on XOM puts!

The Exxon (XOM) December $40 put, recommended August 1 for $3.50 or less, closed October 1 at $7.90, +126% in 2 months, with an always known and strictly limited risk!

That is the Superleverage Power of my method on display.

We look for options that are set to move from “out-of-the-money” to “in-the-money.”  That is where your greatest returns are made.

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Advanced, +150% in 2 Days on AMD Puts!

AMD chart

Chart by Steven Sarnoff, h/t stockcharts.com

Well, it’s been a minute.  It feels good to be back to the blog.  At the onset of the global pandemic, my wife, Tracy, was no longer able to teach her in-person whole-food plant-based cooking classes (for disease prevention and survival).  Together we decided to launch a business selling her nutritious and delicious foods.  I switched Options Hotline to a monthly publication to give me more time to help get the food business going.

We are so grateful for the tremendous response to Tracy’s Real Foods.  Check us out at tracysrealfoods.com.  We’re growing locally around San Diego and ship nationwide.  Let me know what you think.

Now, back to options.  The greatest options gains are made when your options quickly move from “out-of-the-money” to “in-the-money.”  That is just what happened with our September 1st recommendation on AMD (Advanced Micro Devices). 

The late-August push higher created glaring negative technical divergences between price and my indicators (new highs for price, but not the indicators shows price may not be as strong as it appears).  Leading technology stocks looked ready to correct.  My recommended AMD October $90 put for $7.00 or less was triggered on the September 2nd opening at $6.70. 

As you can see on my daily candlestick chart above, AMD posted consecutive negative black lines and broke the positive influence of the short-term moving average.  Friday saw a rebound right to that line posting an indecisive candle.  Former support often represents new resistance.  We shall see.

Friday’s intraday decline helped our recommended put option achieve our stated $15.00 price objective.  The AMD October $90 put traded as high as $16.75, +150% in 2 days, with an always known and strictly limited risk!  That is what I call Superleverage.

Started by my father in October of 1989, Options Hotline is approaching its 32nd year of publication.  I can’t guarantee all my recos will be like AMD, but I do promise to continue to do my best to find options winners for my great subscribers.

Subscribe today to see what we come up with for October.

Stay safe.

Best regards,

Steve

 

MU Shoo

Micron chart

Chart by Steven Sarnoff, h/t stockcharts.com

As you can see on our daily candlestick chart above, Micron (MU) shares look ready to leave their rally and head south.

The historic panic plunge in oil may grab the headlines, but it’s Tech shares that look terrible. 

The struggle is real, as Wall Street darlings like MU fade under the negative influence of a down trend.

We’re watching for a big test of underlying support (demand) in the low-$30s.  The negative character of the behavior of price movement is depicted by the appearance of consecutive black candle lines right at technical resistance (supply).

This indicates the likelihood, but not the certainty, of lower prices down the road.

Subscribe to Options Hotline today to stay a step ahead of the crowd as you vie for fun and profit.

Best regards,

Steve

h is for holy $#*!

Micron stock chart

Chart by Steven Sarnoff h/t stockcharts.com

Options Hotline reco update, FYI: +35% in a single session on our Micron puts!

Sensible speculators seek to buy options that will move from “out-of-the-money” to “in-the-money.”  That’s where the greatest gains are made and that’s what our most recent recommendation (see 03-31-20 Options Hotline) did today.

The Micron June $40 put triggered at $3.75 and subsequently traded as high as $5.05, +35% in a single session, with an always known and strictly limited risk!

As you can see on my daily candlestick chart above, Micron, appears to be tracing out a potential “h” pattern. That’s where price has a sharp decline, followed by a bounce that rolls over and points to a likely test of the recent lows.  This bearish price pattern closely resembles a lower case “h.”  It’s counterpart is the bullish “y” pattern.

We recommended puts on Micron, because the character of the behavior of MU’s share price turned negative at resistance (supply).  We are looking for a move toward secondary support (demand) in the low-$30s.  The price action moving forward will tell us a lot about who the stronger force (buyers or sellers) really is.

I can’t guarantee all my recos will get triggered on the low or go on to reach multiplier status, but I do promise to continue to do my best to find options winners for my great subscribers.

If this is the kind of options action you are looking for, subscribe today to stay a step ahead of the crowd.

Best regards,

Steve

Options Hotline Reco Update, FYI:

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

+215% in a month and a half on our recommended QQQ March $215 put, with an always known and strictly limited risk!

Patience tends to pay.  In today’s session, another failed rebound attempt sent stocks sharply lower again.  We’re on watch for signs of a turn.  But, as you can see on my daily candlestick chart above, the very negative character of market price movement is pointing to the likelihood of lower prices ahead.

It was a rough day for many market participants, but not too shabby for our readers who used puts for protection.

Our recommended put option on the Nasdaq-100 index was triggered in mid-January at $4.29 and closed today at $13.50.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Best regards,

Steve

P.S.  Keep calm and wash your hands.

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Embrace selloffs because that’s when the market gives you its best clues.”
— Joseph Fahmy, @jfahmy

Keeping your eyes open to developing divergence between the action of individual stocks and the market can provide powerful information.

If a stock is holding up well while all around are down sharply, that tells you something good.

Best regards,

Steve

Law of Gravity

spce chart

Chart by Steven Sarnoff, h/t stockcharts.com

Early today, shares of Virgin Galactic (SPCE) continued their rocket rise.

The SPCE April $20 call option I recommended to subscribers (see yesterday’s blog post and the 02-09-20 Options Hotline) for $2.50 reached a value of $18.72 today, +649% in a little over a week.

But markets don’t move in one direction.  Even though shares were up from Friday, the character of today’s price movement is actually negative.  See my chart above for today’s black candle line with an upper shadow.  That shows price falling from the high of the day and implies the likelihood of a coming move lower to levels of underlying support (demand).

It’s important to remember the law of gravity applies to markets.

If buyers are exhausted from a hyperbolic rise, SPCE will get burned on re-entry.

A wild ride, indeed.

Best regards,

Steve

 

 

Outta Space

spce chart

Chart by Steven Sarnoff, h/t stockcharts.com

I hope you’re all enjoying the Presidents’ Day holiday.

FYI: This past week, call options on Virgin Galactic quadrupled.

The header for my most-recent recommendation to our subscribers (see 02-09-20 Options Hotline) was, “Outta Space.”  It was a subtle tribute to Billy Preston’s funky 1971 instrumental track, which your then 13-year old editor saw him perform with the Rolling Stones during one of their 1975 shows at Madison Square Garden.

billy preston

Billy Preston, circa 1975

My idea was that shares of Virgin Galactic (SPCE) were set to launch another leg higher.  Here was my chart from that bulletin.

spce chart

Chart by Steven Sarnoff, h/t stockcharts.com

With SPCE at $18.93, the option I was eyeing closed $2.45 bid at $2.55. I recommended the SPCE April $20 call for $2.50 or less.  The option expiration date was April 17th.

As you can see on the chart at the top of this post, shares rocketed higher from my reco point A.  SPCE closed Friday at $28.68.

The low trade for my recommended option was $2.56, on Monday the 10th, so my recommended trade was not officially triggered.

I prefer using limit orders for entry, because you always know your risk.

The option closed Friday the 14th at $10.00, quite a Valentine’s gift for those who bought anyway.

By week’s end the Superleverage power, available only to option buyers, was on display.

Congrats to those who profited.  If you didn’t get it, don’t worry.

There’s always opportunity in options.

Best regards,

Steve