Going to a GOGO!

GOGO chart

Chart by Steven Sarnoff, h/t stockcharts.com

OPTIONS HOTLINE Reco Update, FYI:
+53% in 1 week on GOGO calls!

With apologies to Smokey Robinson and to the Rolling Stones, our recommended option play this month was emailed to subscribers on October 1st.

The GOGO December $10 call triggered 10-01-20 at $1.70, closed 10-09-20 at $2.60, +53% in a week, with an always known and strictly limited risk!

As you can see from my daily candlestick chart above,  GOGO shares look ready to get going and go higher. 

Friday’s strongly positive red candle (open low, close high) implies the likelihood, but not the certainty, of a continued move up.

Underlying support is now at $9.00-$10.54.  Resistance is at $12-$13 and $15.

When it was triggered, GOGO was at $9.65 and the December $10 call option had no intrinsic value, its price was only for time and volatility.  Each $1.00 above $10 for GOGO shares gives each $10 call option another $100 (because each option is for 100 shares) of real value in addition to any time value. If GOGO is at or below $10 on the third Friday in December, the option will expire worthless.  That is the risk.

Risk is limited but it’s high, as it should be for the opportunity to earn high returns.  Only speculate with money you can afford to lose.

I can’t guarantee that all my recos will go like GOGO, but I do promise to continue to my best to find option winners for you.

Since 1989, we’ve been helping our readers practice sensible speculation.  Subscribe to Options Hotline today to stay a step ahead of the crowd.

Let me know if you have any questions.  I always enjoy hearing from you, even when you tell me my picks are crazy.  Our email never sleeps.

Stay safe!

Best regards,

Steve

Oil Slide

Exxon chart

Chart by Steven Sarnoff, h/t stockcharts.com

OPTIONS HOTLINE Reco Update, FYI:
+126% in 2 months on XOM puts!

The Exxon (XOM) December $40 put, recommended August 1 for $3.50 or less, closed October 1 at $7.90, +126% in 2 months, with an always known and strictly limited risk!

That is the Superleverage Power of my method on display.

We look for options that are set to move from “out-of-the-money” to “in-the-money.”  That is where your greatest returns are made.

Continue reading

Advanced, +150% in 2 Days on AMD Puts!

AMD chart

Chart by Steven Sarnoff, h/t stockcharts.com

Well, it’s been a minute.  It feels good to be back to the blog.  At the onset of the global pandemic, my wife, Tracy, was no longer able to teach her in-person whole-food plant-based cooking classes (for disease prevention and survival).  Together we decided to launch a business selling her nutritious and delicious foods.  I switched Options Hotline to a monthly publication to give me more time to help get the food business going.

We are so grateful for the tremendous response to Tracy’s Real Foods.  Check us out at tracysrealfoods.com.  We’re growing locally around San Diego and ship nationwide.  Let me know what you think.

Now, back to options.  The greatest options gains are made when your options quickly move from “out-of-the-money” to “in-the-money.”  That is just what happened with our September 1st recommendation on AMD (Advanced Micro Devices). 

The late-August push higher created glaring negative technical divergences between price and my indicators (new highs for price, but not the indicators shows price may not be as strong as it appears).  Leading technology stocks looked ready to correct.  My recommended AMD October $90 put for $7.00 or less was triggered on the September 2nd opening at $6.70. 

As you can see on my daily candlestick chart above, AMD posted consecutive negative black lines and broke the positive influence of the short-term moving average.  Friday saw a rebound right to that line posting an indecisive candle.  Former support often represents new resistance.  We shall see.

Friday’s intraday decline helped our recommended put option achieve our stated $15.00 price objective.  The AMD October $90 put traded as high as $16.75, +150% in 2 days, with an always known and strictly limited risk!  That is what I call Superleverage.

Started by my father in October of 1989, Options Hotline is approaching its 32nd year of publication.  I can’t guarantee all my recos will be like AMD, but I do promise to continue to do my best to find options winners for my great subscribers.

Subscribe today to see what we come up with for October.

Stay safe.

Best regards,

Steve

 

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

Land of Hope and Dreams

Seeing financial media report the market up sharply this morning, on hope for big Pharma progress in the fight against Covid-19, had me thinking of the great song above by Bruce Springsteen and the E Street Band.

Reports such as that trigger my contrarian senses.

The character of the behavior of market price movement actually has us quite skeptical.  Don’t be surprised to see stocks move south.

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

Stay smart and stay safe.

As Bruce sings, “Tomorrow there’ll be sunshine and all this darkness past.”

Best regards,

Steve

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

UCSD Geisel Library

UC San Diego’s Geisel Library, h/t sandiegomagazine.com

“You will come to a place where the streets are not marked.
Some windows are lighted. But mostly they’re darked.
A place you could sprain both your elbow and chin!
Do you dare stay out? Do you dare go in?
How much can you lose? How much can you win?

And IF you go in, should you turn left or right…
or right-and-three-quarters? Or, maybe, not quite?
Or go around back and sneak in from behind?
Simple it’s not, I’m afraid you will find,
for a mind-maker-upper to make up his mind.”
— Dr. Seuss, Oh The Places You’ll Go!

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