Your Daily Bit of Wall Street Wit & Wisdom

Differing opinions in Wall Street trading

One man’s ceiling is another man’s floor

One of my favorite Wall Street expressions is, “Differing opinions make markets.”  And to quote, Paul Simon, “One man’s ceiling is another man’s floor.”  Man, that was a good song; I think I had it on 8-track.

The cartoon above is a good reminder to keep calm and approach your trading with a cool, unemotional mindset. But how do you do that?

At Options Hotline, our approach is to be prepared for whatever the market does.  That involves having your risk be always known and completely limited.  We have a complete game plan for trading success.  Our plan is built on the cornerstones of mind, method, and money management.

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

We’re heading into a long weekend, with a markets fast approaching a potential curve.  Keep a cool head, eyes open, a steady hand on the wheel, and buckle your seat belts.

Have fun and enjoy the ride, vying for profit.

Best regards,

Steve

Options Hotline 2018 Performance Review

by Steven Sarnoff

With 2019 trading just underway, let’s take a moment to review Option Hotline’s 2018 performance record.

2018 was a tough year for many market participants, but not too shabby for Options Hotline readers who followed a complete game plan for trading success.  The S&P 500 was -6.20%, its worst year in a decade.  This included the worst December since 1931!

As you can see from our track record below, Options Hotline recommendations were +36.50% in 2018.  Nearly 7x better than the S&P 500 is commensurate for the high risk options buyers take on.

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All ATwitter

Latest Options Hotline Reco, +42% In A Single Session

by Steven Sarnoff

This past Sunday, I emailed our great subscribers my Options Hotline bulletin.  As to the market I wrote, “We could see exaggerated swings in both directions…,” and recommended buying the Twitter January $32 call option for $1.90 or less good this week.  As usual, I included my Candlestick chart, info on support, resistance, price objective, and rationale for the reco.

When trading resumed, Trump’s tweets bout his lovely dinner in Argentina with Xi had Financial talking heads and buyers all atwitter.  Bulls ran the market up early on Monday, but reality ensued and stocks started to slip.  Twitter fared well and our entry price was not met.  The low trade in the option was $2.25.   Tuesday saw the option trade up to $3.30, before shares of the global self-expression platform declined with the overall market.  Sellers stepped up and buyers stood aside.  I only consider a recommendation triggered if it trades at or below our recommended price during the week.

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A Step Ahead, Covering Our XLF Play

Grabbing Great Gains Before Financials Fall

by Steven Sarnoff

Japanese Candlestick charts are a superior way to depict market price movement, because they vividly depict and reveal the human behavior (buying and selling) that drives price direction.  They often send up early warning signs of coming turns in price.  The chart is never wrong, only the analysis.

On a day when the Financial sector took it on the chin and fell hard, our readers are glad they were able to grab their gains (+82% in a little over a month) before many market participants felt the pain.  With markets closed tomorrow, here’s a walk through how we exited a step ahead of the crowd.

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Printing Multiplier Profits In 3D

Printing Profits, Not Guns, in 3D

by Steven Sarnoff

OPTIONS HOTLINE Update, FYI: +241% in a month and a half on our recommended 3D ($DDD) calls. This morning, I sent a Profit Alert to our subscribers. 3D Systems Corp. is topping the market’s biggest gainers list, trading sharply higher following a Q2 earnings beat. While shorts are squeezed, as investors and analysts rush in, our great subscribers calmly book their gains. They are seeing their patience pay and their trade triple.

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Our Disney Trade On Ice

How Options Hotline subscribers are feeling this afternoon

by Steven Sarnoff

“It’s kind of fun to do the impossible.” — Walt Disney

OPTIONS HOTLINE Update, FYI: +125% in 2 weeks on less than a 5% move in Disney, with an always known and strictly limited risk!  This morning, ahead of an upcoming quarterly earnings report, I emailed a Profit Alert to my nimble #OptionsHotline subscribers.

They bought our recommended $DIS call at point A. and sold at point B. From 07-23-18 to 08-06-18, $DIS went from $111 to $116 and our option went from $200 to $450.

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Ready For A Reversal In Gold

by Steven Sarnoff

As we welcome August, we could be on the verge of an august rebound in gold.  My contrarian senses were tingling when Vanguard recently renamed its Precious Metals and Mining Fund to the Vanguard Global Capital Cycles Fund.  This exemplifies gold as an out of favor investment and is a sign the conditions may be right for forming a significant bottom.

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Surfing Silver With The Superleverage Power Of Options Hotline

silversurfer

by Steven Sarnoff

My Options Hotline subscribers doubled their money in just one day, today!  Here’s how they did it.

Option buyers are the only ones who have the Superleverage power to use OPM (other people’s money) to profit from changing prices, with an always known and strictly limited risk at all times.  Options also allow sensible speculators the opportunity to profit from stock moves both up and down.

Such has been our experience this year, using shares of silver streaming company Silver Wheaton (SLW) as our proxy for the precious metal. Continue reading

Never Be Surprised And Always Be Surprised

confident_man-1

by Steven Sarnoff

“We have 2 classes of forecasters: Those who don’t know . . . and those who don’t know they don’t know.” — John Kenneth Galbraith

Looking at today’s markets, the forces of deflation and inflation continue to slug it out in a titanic struggle for dominance. Options traders face ever-changing wind conditions as they attempt to pilot their portfolios to profit. Over the years, we’ve managed to navigate the stormy seas with a steady hand on the tiller. One of the keys to our success is keeping a sense of perspective. As our service sails along toward its 28th year of advocating sensible speculation, I’d like to share some seemingly impracticable musings you may find useful. Continue reading

Bonds, T-Bonds — Shaken, Not Stirred

bond

by Steven Sarnoff

No, not that Bond.  I’m talking US Treasury bonds! In today’s session staid T-bonds sold off a little over 1%, as investors fret over future central bank monetary largesse.  Interest rates move inverse to bond prices, so falling bond prices mean higher yields.

Our Options Hotline subscribers were positioned beautifully for this scenario and saw their money multiply in just over two weeks! Continue reading