The Superleverage Power of Call Options

Avengers Endgame poster

Avengers Endgame Chinese Poster h/t Disney/Marvel

Disney June $115 call

Options Hotline, March – April, 2019

The Superleverage Power of my method was on display this week, as Options Hotline subscribers multiplied their money with our call recommendation on shares of Walt Disney Co.

On Friday, DIS soared like Captain Marvel going full binary.  Following the unveiling of its streaming service, DIS rose 11% from the previous day.  This action helped shares reach our $130 per share price objective (see 03-10-19 Options Hotline and 04-12-19 Options Hotline Alert).

Our recommended DIS June $115 call, triggered 03-11-19 at $4.50, with DIS at $114, traded 04-12-19 at $17.00, with DIS at $130.  That’s +278% in a month, on a 14% move in the underlying shares, with an always known and strictly limited risk!

We’re always seeking to stay a step ahead of the crowd.  Here’s what it looks like on my daily candlestick chart for Disney:

Disney price chart

My daily candlestick chart for Disney, h/t

So Sarnoff, what is Superleverage?

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Your Daily Bit of Wall Street Wit & Wisdom


Remembering our great dog, Puka.

When asked why he continued speculating, James R. Keene, a famous speculator, replied, “Why does a dog chase his thousandth rabbit? All life is a speculation. The spirit of speculation is born with men.”
— Bernard Baruch, Baruch: My Own Story

Be sure to understand that speculation differs from investment. Also know the difference between speculation and gambling.

Investing is for longer time horizons and has a generally lower risk for lower expected reward.  Gambling involves blind risk-taking.

Speculation is about taking calculated risks to protect against future price fluctuations and profit from price movement.

Now in our 30th year, Options Hotline specializes in the art and science of sensible speculation.

Have a superb Sunday and good luck in your trading.

Best regards,


Your Daily Bit of Wall Street Wit & Wisdom

Gold bars

Gold bars

“Gold is still significant.  I ask myself, if it’s a relic of a long history, why is there a trillion dollars held in gold by the world’s central banks plus the IMF and all the other financial institutions?  If it’s worthless and meaningless, why is everybody still holding it?”
— Alan Greenspan

A few weeks ago, we posted about gold.  The Midas metal continues to be a store of value and is trading at a 10-month high.

Our recommended precious metals play for Options Hotline subscribers (triggered 02-04-19) is trading +95% in less than 3 weeks, with an always known and strictly limited risk.

If you want to subscribe, sign up here to see what our next move is.

Best regards,


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,


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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