Resistance

bear catching salmon

Thomas Mangelsen’s iconic photo h/t mangelsen.com

SUBSCRIBER NOTE: Options Hotline monthly broadcast goes out after the close today

Former support (demand) often represents new resistance (supply).  April’s rebound brought the stock market right to technical resistance. 

A turn lower here indicates a change in the short-term balance of power.

Sign up for Options Hotline today to see how our subscribers vie for fun and profit over the weeks ahead.

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

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.

Your Almost Daily Bit of Wall Street Wit & Wisdom

mack truck

h/t macktrucks.com

“More data — such as paying attention to the eye colors of the people around when crossing the street — can make you miss the big truck.”
— Nassim Nicholas Taleb

Successful speculation is as much about honing your survival skills as it is finding winning trades.

Don’t suffer paralysis from over-analysis.

Pick the indicators you like best and use them.

That can can help you stay a step ahead of the crowd.

Subscribe to Options Hotline today, to see how we use puts for protection.

Best regards,

Steve

Elevator, Going Down

qqq chart

Chart by Steven Sarnoff, h/t stockcharts.com

In today’s session, an early rebound was swamped by selling.  As you can see on my daily chart above, the Qs settled sharply lower.  Today’s strongly negative candle shows the elevator (see our previous post) is going down.

Our recommended protective puts were far “out-of-the-money,” trading just a week ago at a scant $.61.  Today, not so much, they traded at $6.70.

Patience tends to pay.

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

Best regards,

Steve