Apple Iphone 4S – AAPL trading opportunity
Apple announced its new iPhone 4S model at the event, along with iCloud’s release date and the new Siri assistant feature.
The iPhone 4S will be released on October 14th and will be available for pre-order on October 7th. iCloud and iTunes Match will be available alongside iOS 5 on October 12th.
iOS 5 is the next major revision to Apple’s software for iPhone, iPod, Apple TV and iPad devices. You can see our complete rundown of the iOS announcements back at WWDC here. We’ve also got a closer look at some of the features of iOS like iMessages, Twitter, Setup and Notification Center, iCloud and alerts.
Click here to watch the live recording,
Investors didn’t seem to like the new plan much as we watch AAPL share traded below its 100 DMA where opportunities to be in cheaper from extreme oversold condition.
Base on our patent pending trading strategies, it isnt that diffcult to see where bottoms could be.
Even with the recent price drop, AAPL remains on top of my personal buy list for options trading since they are a class asset of their own. Look around you, how many of your friends have an iWhatever? iPhone launch is big for AAPL, and rumor sprint ordered $20 billion worth already!.
Even if you didnt realize any of this and have zero friends with an iWatever or iPhone from Apple. Our technical research indicates lower risk entry point.
Great entry points today if you were in the virtual trading desk with us.
With our trading methodology, the short term selling of AAPL hit an extreme today, and the 100 DMA held as the bottom of the cycle should hold as it is closer to lowest than it is highest. Watch the next few key release day for potential strength to continue on the upside. Remember, your odds can be higher with a more accurate entry & exit.
Best of luck, and have fun with iphone 4S!
Join us here and accelerate your compounding power for the next 60 days!
Ren Ren IPO in the US
Chinese SNS site renren (RENN) hit the market last week as one of the most aggressive IPO in SNS history. Shares were up over 40% right out of the gate.
However, with the weakness in the overall US equity market as well as commodity burst last week. Renren has fallen to a level that is just a few percentage higher than the initial IPO price.
Renren only have 118 million users in china, compare to facebook of 650 million users world wide, there are still a lot of room to grow given the 12 billion population in China.
On weakness, this one would be on my accumulation list.
How to make 86%+ profit in just 1 day
Reposting from my trading club page to share with my regular readers.
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One of the great thing about options is there are always simple strategy for just about every situation!
When you do find a bullish breakout stock that is going into earning with super inflated option premium like the leader in Chinese Search Engine Baidu.
Why wouldn’t anyone not take advantage of this move?
There are several ways to take advantage of this special situation. Simple setup that only takes minutes to do anytime this week base on your own entry.
The WOT income strategies is sell some put spreads to take advantage of those free money . 90/95 was the safe zone on the downside as the stock has broken out to new 52 week high, and held the support of 98 in a strong uptrend in a bull market.
Position open on Monday with conservative 90/95 spread. Credit of $0.82 on a $5 spread or 16% profit potential
$500 would get you a $82 dollar in profit or 16%. From the charts and growing Chinese economy after Google’s withdrawing from China. The odds of disappointing numbers will be slim.
As always, we do send out reminders to our private WOT members as well as Facebook fans on these trading opportunities.
Reminder yesterday about the opportunity to configure trades yesterday.
If you want a little more action and have time to sell into the market live, exit ranges could be over 100%+.
WOT 100%+ strategy
Call spread as the premiums are super inflated, using a call spread to offset the cost and increase your overall profit potentials in this example.
100/110 spread as shown in this example to capture as much upside as possible. Trade open at $3.95, sold at $7.33 for $3.38 or 86% profits.
If you want to buy high and sell higher, this is a great short term (1 day) bullish strategy to deploy with limited defined risk.
$395 to $733
$338 or 86% profit
If you are a stock buyer, you would kick yourself for risking $10,000 for a 7% return in the market. The same option strategy limits your risk at just $395 if the trade went against the “trend”
If you combined both strategies together, you would enjoy 30%+ boost in profit to turbocharge your investment account in just 5 days.
One of the key principle is to limit your risk and exposure. Combining with right trading strategies and proper risk management, you too can enjoy results like this every single week in tomorrow’s market.
More opportunities next week! Go get them and make 2010 your year!
Trade with confidence.
PS. Ready to swing more home runs next week? Sign up for our private membership here and let us coach you how to do it We meet every week to go over a planned strategy for maximum return potentials.
How to bag 3100% profit in just days!
In case you missed some of my post on options trading club. I am reposting on my personal blog.
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Here is an example on how one could have used our newsletter information to achieve 3100% in just 5 days.
Our members gets weekly alerts on what to look for. Some strategies are also posted on our facebook fanpage.
Here is an example trade for this week on how one could swing over 3100% profits in just 5 days as Options Trading Club members.
The story unfolds October 4th.
Entry notification. Facebook & Newsletters
You will always have some opportunities to buy. Our entry on 6, and 7 during the pullback.
90C
95C
Breakouts also offers incredible opportunities for a short term swing trading.
And members who took advantage of the breakout and swing a nice home run of 253%. Simon did a fantastic job putting the trading strategies to work.
The 90 calls traded as high as $14.50
http://finance.yahoo.com/q?s=WYNN101016C00090000
The 95 calls traded as high as $9.60, and we saw a low of $0.30. That is just $30 dollars to $960 in less than 5 days!
http://finance.yahoo.com/q?s=WYNN101016C00095000
Stay tune as more opportunities in tomorrows market..Get ready!
Ready to swing more home runs? Sign up for our private membership here and let us coach you to it.
New Weekly Options from CBOE
CBOE introduced the weekly options starting July 1st. I made a video at my trading club explaining how they work. Watch this and see how you can profit from it.
To learn more and get a full list of weekly options from CBOE. Click here.
Trade well!
Andy
Option Trading Strategies on earnings for Las Vegas Sands LVS
Using options to trade into earning is one of my favorite strategy. With limited risk exposure, you can capture some amazing move using the power of options.
Here is a video I did for my trading club member explaining exactly what I look for to trade into LVS earning this week. I am re-posting here so you can also see some of things that I do and learn from it.
Financial Market Commentary
In the last two weeks, we have gone from a bearish head and shoulders breakdown to a new relative high. The market has rallied almost 10% in that time and the momentum is very strong.
Rising interest rates put the brakes on June’s rally and investors were concerned that the continuous supply of new bonds would put upward pressure on yields. The Treasury has to finance a $2 trillion deficit and huge bond auctions will be held every other week. In its statement, the FOMC said that they will not be buying Treasuries after the September deadline. This was a sign that the Fed is less accommodative and stocks drifted lower. To the surprise of many, the bond auctions over the last few weeks have gone much better than expected and interest rates started to decline. This paved the way for a big rebound.
Technicians could easily see the head and shoulders formation and the neck line at SPY 89. That level also represented the 200-day moving average. When it was breached, bears piled in. The large short interest also provided a catalyst for the rally when shorts had to cover.
Goldman Sachs blew earnings estimates away and financial stocks surged higher last week. That rally got the ball rolling. The next day, Intel beat estimates by a huge margin and they provided strong guidance. This rally sparked a huge round of short covering and Asset Managers that were under allocated scrambled to place money. Since that initial run, the XLF (financial sector ETF) and the SOX (semiconductor index) have been relatively flat indicating that good news is priced into these sectors.
This has been a very busy week and a flood of earnings have hit the market. One general observation is that cyclical stocks are rallying even though the top line growth and the guidance have been weak. Companies have done a great job controlling costs and the bottom line is beating estimates. However, the rally in economically sensitive stocks is all based on the promise of a recovery. I’m also seeing short covering in many of the laggards and they are rebounding after posting weak results. My conclusion is that the market is getting ahead of itself.
The market has been able to hang on to its recent gains and that is a positive sign. Tuesday and Wednesday profit takers were did not spark a round of selling and both days the market recovered quickly. The bid is strong and today the SPY broke to a new relative high not seen since last November. This latest action should spark another round of short covering–however once that impetus runs its course, the market should fall back below SPY 96.
Call us skeptical, but the recent breakdown below SPY 89 did not hold and I don’t believe this breakout above SPY 96 will hold either. The market is searching for direction and these light volume moves will fool as many traders as possible. Good results are already priced into the market and valuations are getting stretched.
Analysts keep talking about a rebound, but that is not being reflected in energy or transportation. If global economies were truly rebounding, we would see oil prices move higher. Production and exploration has been cut and any uptick in demand would deplete inventories. Crude supplies are still running high. Railroads and truckers are posting weak numbers and they are providing dismal guidance. This morning, UPS missed its number by a large margin and it is often considered an economic barometer. Until we see these conditions change, it might not be wise to get too invested in the current recovery theory.
Earnings releases will be heavy next week along with a slew of economic reports including new home sales, consumer confidence, durable goods, the beige book, GDP and Chicago PMI. While this news should generally be positive, a stiff head wind will return. Next week, approximately $110 billion in longer-term Treasuries will be auctioned and there is every reason to believe interest rates will start moving higher.
In summary, the market is likely to break out and then fall back into its trading range the rest of the summer with some surprising breakdowns. The greatest risk right now is to the upside. The best approach now is to use the Live Update page to play the best performing stocks on the upside using tight stops–while keeping a list of bearish plays automatically keyed up for any breakdown.
To your success!
Andy Huang
