Don’t Chase

JPM price chart

Chart by Steven Sarnoff, h/t stockcharts.com

Options Hotline Update, FYI: Our JP Morgan Chase reco closed +41% in 1 day on a 2% move in the underlying shares, with an always known and strictly limited risk!

That’s Superleverage Power on Display.

Our recommended option trade for subscribers, the JPM December $110 put, triggered yesterday at $2.70 and closed today at $3.80.

JPM closed today’s session eyeing its recent low and a potential visit to the area of its August nadir.  The big banks are getting beaten down.

Resistance is now at $112.41-$114 and $116-$120.  Support is at $109-$110 and $103-$107.

Is that the type of options action you’re looking for?

I’m now in my 21st year at the helm, as the newsletter created by my father approaches its 31st year of publication.

Subscribe to Options Hotline today to vie for fun and profit.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Now that we found love what are we gonna do with it?”
— Kenny Gamble and Leon Huff

We enjoyed seeing Third World perform their 1978 hit cover of the song, originally performed by the O’Jays, at the San Diego Reggae Vegan Fest.

You find price direction, but what do you do with it?  Speculation may be simple, but it’s not easy. At Options Hotline, we’ve been helping our subscribers play and sensibly speculate for more than 30 years!

Our most recent recommendation on Verizon triggered on this morning’s open and traded +48% in a single session on a 2% move in the underlying shares, with an always known and strictly limited risk!

Irie!

We email our picks on Sunday evenings.  If that’s the kind of options action you’re looking for, subscribe to Options Hotline today.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Superleverage, it’s the only sensible way to speculate.”
— Paul Sarnoff

With Comic-Con in town, this struck me as a natural subject.  Superleverage is the art of profiting from changing prices, with limited risk AT ALL TIMES, without ever getting a margin call, asked to put up additional funds, or forced to liquidate your position.

The instruments of Superleverage are exchange traded put and call options.

Buyers of puts and calls are the ONLY ONES who possess the full profit power of Superleverage.

The Superleverage power of our method was on display again today, as our call on Barrick Gold Corp. (GOLD) closed +296% in a month, with an always known and strictly limited risk!

The underlying shares have made a nice move, from $13.89 to $17.35, propelling our recommended GOLD September $14 call option from $85 to $337!

If this is the type of options action you’re looking for, subscribe to Options Hotline today.

Best regards,

Steve

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

gold pan

Photo credit: Paperny Entertainment

“Finding winners, especially big winners, is a process of discovery.  The losing trades are an integral part of that process.”
— Peter Brandt, @PeterLBrandt

Our recommended call option on Barrick Gold (GOLD), triggered 06-17-19 at $85, traded this morning at $280, +229% in less than a month, with an always known and strictly limited risk!

If that’s the type of options action you’re looking for, subscribe to Options Hotline today.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Gold chart

Chart by Steven Sarnoff, h/t stockcharts.com

“Folks using intraday charts to call the top of a gold move that is unfolding on monthly charts is hilarious.  Y’all are doing it backwards!”
— Chris Carolan, @spiralcal

Options Hotline Update, FYI: Our recommended Father’s Day call on Barrick Gold Corporation (GOLD), emailed Sunday evening to our subscribers, triggered 06-17-19 at $85 with GOLD at $13.86, traded 06-21-19 at $206 with GOLD at $15.68, +142% in 4 days on a 13% move in the underlying shares, with an always known and strictly limited risk!

That’s the Superleverage power of my method on display.  If this is the type of options action you’re looking for, subscribe to Options Hotline today to see how we stay a step ahead of the crowd.

The character of the behavior of price movement in gold is telling us a big longer-term breakout is in play.  Former resistance (supply) now represents underlying support (demand).  The strong red candles on my weekly chart above depict this vividly.

It’s important to view price movement from different time perspectives: monthly, weekly, and daily.  Consider the lines of average price movement, along with price movement irrespective of time and you begin to approach a complete picture.

Best regards,

Steve

GOLD Gets Going

Options Hotline Update, FYI: Our recommended call on Barrick Gold Corporation (GOLD) trades +131% in 3 days, on a 12% move in the underlying shares, with an always known and strictly limited risk.

Market moves accelerated following a friendly Fed statement.  Falling Treasury bond yields are weighing on the US dollar.  This is helping boost stock prices and it benefits gold, as well.

Continue reading

Your Almost Daily Bit of Wall Street Wit & Wisdom

h/t Shutterstock

“We typically trade our beliefs about the market, and once we’ve made up our minds about those beliefs, we’re not likely to change them.  And when we play the markets, we assume that we are considering all of the available information.  Instead, our beliefs, through selective perception, may have eliminated the most useful information.”
— Van K. Tharp

You are the most important factor in your success.  Understand and overcome your biases.  Use a trading system that’s right for you.

I believe that mind, method, and money management are the cornerstones of your complete game plan for trading success.

FYI: Our latest option recommendation, on Barrick Gold Corporation (GOLD),  is trading +30% in one day on a 2% move in the underlying shares, with an always known and strictly limited risk!

That’s the Superleverage power of my method on display.

If that’s the type of options action you’re looking for, click here to subscribe to Options Hotline today.

Let me know if you have any questions.  My email never sleeps.

Good luck in your trading!

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

whipsaw

Two men whipsawing lumber in British Columbia circa 1898 h/t Eric A. Hegg

“Consolidations are traders’ markets, in both directions.”
— Steve Rhodes

Markets move between areas of support (demand) and resistance (supply).  In a large market consolidation, whipsaw action is not unusual.  It provides opportunity for nimble traders to profit from moves up and down.

Option buyers are the only ones who possess the Superleverage power of unlimited profit potential with an always known and strictly limited risk.

Good luck in your trading!

Best regards,

Steve

Let the Chips Fall

Micron stock chart

h/t stockcharts.com

Options Hotline Update, FYI: +140% in 2 months on Micron puts

This morning, financial news was blaring about continued US/China trade tensions pressing Tech stocks to the downside. The move lower in Micron reached our $33 price target (see 03-24-19 Options Hotline) and our readers received an email Profit Alert that we would consider the position closed.

The Micron July $40 put, triggered 03-25-19 at $3.00, traded 05-23-19 at $7.20, +140% in just under 2 months, with an always known and strictly limited risk!

That’s the Superleverage power of our method on display.

You can see on my daily candlestick chart of Micron (MU) above, subsequent to our recommendation MU had a quick decline and rebound.  Shares then settled into a consolidation, before breaking down, over the past few weeks, to our objective.

Over the years I’ve found that patience tends to pay.  If this type of options action is for you, subscribe to Options Hotline today.

Let me know if you have any questions. My email never sleeps.

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

Infinity War

h/t Marvel Studios

“To see what is in front of one’s nose needs a constant struggle.”
— George Orwell

At Options Hotline, we focus on the character of the behavior of market price movement.  We view the market action as a daily struggle between buyers and sellers for the edge in price direction.

We combine our expertise in ancient Japanese charting techniques with the best of western technical analysis to identify which side is stronger, along with when and where the balance of power is likely to shift.

We add the Superleverage power of options to help you earn great gains from small stock moves with an always known and strictly limited risk.

Contact us if you have any questions.  My email never sleeps.

Have a super Friday!

Best regards,

Steve