Your Daily Bit of Wall Street Wit & Wisdom

Matzah plate

Matzah plate

“Doubt is the beginning of wisdom.

He who will not seek knowledge, knowledge will certainly not seek him.”
Midrash Proverbs 2

All of us at Options Hotline wish you and yours very Happy Passover and Easter celebrations!

Never be certain of coming market moves and continually seek knowledge.  Now, more than ever, it’s at your fingertips.

Put in the work and sustain humility.

Best regards,

Steve

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 stockcharts.com

So Sarnoff, what is Superleverage?

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Your Daily Bit of Wall Street Wit & Wisdom

Captain Marvel poster

h/t IMAX

“If you can dream it, you can do it.”
— Walt Disney

In Friday’s trading, Disney shares soared like Captain Marvel going full binary.

Shares gained 11% after Disney unveiled its streaming service.  That move helped the stock price reach our $130 per share objective.

I emailed Options Hotline subscribers a Profit Alert closing our recommended position in the DIS June $115 call, triggered 03-11-19 at $450 and closed 04-12-19 at $1,700, +278% in a month, with an always known and strictly limited risk!

That is the power of Superleverage on display.

Enjoy a super weekend!

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

tall ship

The Star of India, setting sail from San Diego h/t Scripps Media

“A ship in harbor is safe, but that is not what ships are built for.”
— John A. Shedd

Here are a few tips to keep your trading vessel seaworthy.

Always measure risk versus return in mapping out your trading plan for each foray into the market.

Keep your emotions set on an even keel and a steady hand on the tiller.

Keep watch for changing conditions and have adequate provisions (funds) in case of rough seas.

Set your sails to vie for fun and profit.

Enjoy the trip!

Best regards,

Steve

 

 

Your Daily Bit of Wall Street Wit & Wisdom

“Just keep in mind: the more we value things outside of our control, the less control we have.”
— Epictetus

Markets will go where they want. Traders err when they try to tell the market which way to go.

Control your emotions.

Study the character of the behavior of market price movement and listen to what it tells you about where it’s likely to go.

We’re glad to hear Mick Jagger is on the mend and looking forward to the Rolling Stones getting back in action.

Keep on rolling!

Best regards,

Steve

 

Your Daily Bit of Wall Street Wit & Wisdom

“The minute you think you’ve found the key to trading, I promise you the markets will change the lock.”
— Linda Raschke

Approach your trading with humility.  Enter each trade with a complete game plan for any potential outcome.

Be a lifelong learner.  That will be a key to your success in and out of the market.

What are you learning today?

Best regards,

Steve