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

That’s Gold, Jerry! Gold!

The Midas metal is poised to do well, as central banks and sovereign nations open up the monetary spigots to full.  The classic Seinfeld moment above came to mind.

As you can see on my daily candlestick chart below, gold has roared back from a test of the positive influence of its longer-term moving average line.  Recent forced selling was met by demand.  That is shown by the long and strong red candle lines.

gold chart

Chart by Steven Sarnoff, h/t stockcharts.com

Neel Kashkari, Minneapolis Fed head, whose name reminds me of “cash and carry” futures trades, who gained fame/infamy for his role in the bailout from the 2007-2009 financial crisis, said the quiet part out loud near the conclusion of his segment on 60 Minutes this past Sunday.

Scott Pelley: To the person who is about to grab their car keys and go to the ATM and take out $3,000, you say what?

Neel Kashkari: You don’t need to. Your ATM is safe. Your banks are safe. There’s enough cash in the financial system. And there’s an infinite amount of cash at the Federal Reserve. We will do whatever we need to do to make sure that there’s enough cash in the banking system.

Cue the flight to gold.

Stay well and safe.

Best regards,

Steve

Keeping a Steady Hand

steady ship in rough sea

h/t vantageasia.com

Options Hotline Update, today’s new highs, FYI:

+1,036% on TLT puts in two weeks and

+1,033% on QQQ puts in two months!

Strong sell-offs in both stocks and bonds have sent our recommended option plays soaring.

The TLT September $140 put (see 03-01-20 Options Hotline), triggered 03-03-20 at $1.25, traded 03-18-20 at $14.20.

The QQQ March $215 put (see 01-12-20 Options Hotline), triggered 01-13-20 at $4.29, traded 03-18-20 at $48.60…

..with an always known and strictly limited risk!

That is the Superleverage power of my method on display.

I can’t guarantee that all my recos will multiply like these two, but I do promise to do my best to find options winners for you.

Now in our 31st year of publication, we keep a steady hand on the tiller to help you navigate rough and uncertain market conditions.

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

Stay safe and take care.

Best regards,

Steve

Our Put Answers the Call

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

Multiplying Nearly 11x in 2 Months!

That’s the Superleverage Power of our Method on Display

+995% in just over 2 months on our recommended QQQ put, with an always known and strictly limited risk!

Another historically poor day for the stock market was not too shabby for Options Hotline subscribers.  Our recommended put option put on quite a performance, providing our readers with protection and profits.

You can see the market’s downside acceleration on my daily chart above.

Triggered 01-13-20 at $4.29 (see 01-12-20 Options Hotline),

the QQQ March $215 put traded 03-16-20 at $46.99, +995%!

I can’t guarantee that all my recos will multiply like the Qs, but I do promise to do my best to find options winners for you.

Now in our 31st year of publication, we keep a steady hand on the tiller to help you navigate rough and uncertain market conditions.

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

Take care.

Best regards,

Steve

The Power of Puts

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

+787% in 2 months on our recommended QQQ put, with an always known and strictly limited risk!

On January 12th, Options Hotline subscribers received my email bulletin headed “Puts for Protection.”  As you can see on my weekly candlestick chart above, the Nasdaq-100 index ETF was heading higher.  I saw signs of a turning period on my daily chart and recommended our readers use the Superleverage power of put options to position for protection and profit.

Techs were trounced again today, but our recommended puts are diligently doing their job.

Triggered 01-13-20 at $4.29, the QQQ March $215 put reached an intrinsic value of $38.06 on 03-12-20, +787% multiplying nearly 9x in 2 months,with an always known and strictly limited risk!

I can’t guarantee that all my recos will multiply like the Qs, but I do promise to do my best to find options winners for you.

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

Good luck tomorrow, Friday the 13th, and stay safe.

Best regards,

Steve

Options Hotline Reco Update, FYI:

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

+439% in less than two months on our recommended QQQ March $215 put, with an always known and strictly limited risk!

Our protective put is performing its prescribed role for our readers.  In today’s session, the Nero Adminstration’s inept response to the coronavirus pandemic, OPEC’s epic oil fail, and absurdly low Treasury yields accompanied an accelerated market slide.

As you can see on my daily candlestick chart above, price has reached potential support from a longer-term moving average.  Today’s candle could be the sign of a turning period for a rebound.  It could also catapult price lower, so we will watch for the message subsequent action sends.

Our recommended put option on the Nasdaq-100 index was triggered in mid-January at $4.29 and traded today at $23.12.

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

Best regards,

Steve

P.S.  Keep calm and wash your hands.

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.

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