by Ian Harvey
March 14, 2015
The market bears lose to the continued onslaught from the bulls, as we have witnessed in the past couple of weeks. And more evidence of the bull market rally continuing was evident from Friday’s upsurge in all the indices. The bulls, after suffering a major pull-back in January, have re-vamped themselves with a vengeance – which has produced a tremendous wave of optimism. Many traders have now jumped the fence and proclaimed themselves as “Market Bulls”.
And we, at Stock-Options-Made-Easy, have not been idle and taken full advantage of this change of heart by many traders, as seen by our results – besides those mentioned in Friday’s Market Bite’s – “The Bull Market Persistency”…..
Friday saw members of the “Cut-to-the-Chase” Series not only made serious gains on options waiting for the right moment to take advantage of, but have also improved the profit margins on several from already great results:-
• Monsanto Company (NYSE:MON) Calls - Profit Potential (P.P:) 54%.
• Entergy Corporation (NYSE:ETR) Calls – P.P: increased from 256% to 353%.
• Magna International Inc. (USA) (NYSE:MGA) Calls – P.P: increased from 364% to 396.%
• Rackspace Hosting, Inc. (NYSE:RAX) Calls – P.P: increased from 186% to 275.%
The Dow Jones Industrial Average Indice (DJIA) has just had its fourth straight weekly win, and also topped its 200-day-moving-average – partly due to rallying based on higher oil prices stemming from positive comments from the International Energy Agency (IEA), as well as a strong rally abroad surrounding the European Central Bank’s (ECB) policy decisions. It should also be noted that commodity markets have stabilized, and combined with easing concerns over China's economy, as well as better-than-expected U.S. data, has helped nudge stocks along and allowed the market bulls to prosper.
Other great results achieved by “Cut-to-the-Chase” members are:-
• Barrick Gold Corporation (USA) (NYSE:ABX) Calls – P.P: 210%
• General Motors Company (NYSE:GM) Calls – P.P: 142%
Not to be outdone, the S&P 500 Index (SPX) also set a year-to-date high, and is back above the 2,000 mark. Many investors faced panic earlier in the year, due to concerns that the United States was on the road to a recession. However, this has been dispelled due to recent economic data, which in turn has helped push the S&P 500 Index (SPX) to a recovery of 11% since mid-February. So far in March, every S&P sector has posted gains, which has been led by energy shares.
One drawback to improved domestic conditions is that the Fed may now speed-up their rate increases, which could be a dampener for many investors and crimp the enthusiasm that is apparent at the present time.
However, despite any of these scenarios, Armchair Trader Members of Stock-Options-Made-Easy, are well-positioned to weather the changes – as can be seen with some recent results:-
• J C Penney Company Inc (NYSE:JCP) Calls – 100% Profit (completed)
• Urban Outfitters, Inc. (NASDAQ:URBN) Calls – 112%Profit (completed)
• Ross Stores, Inc. (NASDAQ:ROST) Calls - up 31% … target is 100%.
• salesforce.com, inc. (NYSE:CRM) Calls - up 86% … target is 100%.
• T-Mobile US Inc (NASDAQ:TMUS) Calls - up 56% … target is 100%.
• McDonald's Corporation (NYSE:MCD) Calls - up 22% … target is 100%.
This week expect more volatility, especially with options’ expiration on Friday – another “Quadruple Witching Hour” – as well as further concerns about the uncertainty of oil prices, and the Fed meeting to discuss rate rises.
Not to be left out Active Trader Members whose trades include the Armchair Trader Members trades as listed above, have also benefitted from:-
• Dollar General Corp. (NYSE:DG) Calls – 100% (completed)
• Palo Alto Networks Inc (NYSE:PANW) Calls – 100% (completed)
• BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) Puts – 82% (completed)
• A second Palo Alto Networks Inc (NYSE:PANW) Calls – already up 61% … target is 100%.
• Nordstrom, Inc. (NYSE:JWN) Calls - up 46% … target is 100%.
• Electronic Arts Inc. (NASDAQ:EA) Calls – up 52%... target is 100%.
• Yum! Brands, Inc. (NYSE:YUM) Calls– up 62%... target is 100%.
• Emerson Electric Co. (NYSE:EMR) Calls– up 53%... target is 100%.
In the week ahead we will be recommending more options trades – there is a corral full of stocks available that will definitely be considered – amongst these will be Tiffany, Oracle, Lennar, Adobe Systems, Panera Bread, Campbell Soup, General Mills, Hormel, IBM, NRG Energy, 3D Systems, FedEx and Williams-Sonoma, to name a few under the research microscope. If you have a penchant to profit from our services, several membership series are available -- organized according to time-restraints, risk strategies and available capital – so join us and profit!
Best of Trading,
Director of Stock Options Made Easy