"The Dow Jones Industrial Average will surge to 38,820 in an eight-year “super boom” beginning in 2017, according to Jeffrey A. Hirsch, editor in chief of the “Stock Trader's Almanac.”
The interesting thing is that this prediction was made in Sept 2010 when the Dow Jones was only 10.860.
At that time, they had estimated that the Dow would have had to gain 257 percent, or about 8.9 percent annually in 15 years, to reach Hirsch's projection.
Anyone think this is going to happen?
If so, are you buying some extra long term leaps on the market?
By Option Monster, March 12th, 2014
"Herbalife has spent almost two months in a quiet trading range, but one investor is looking for the stock to wake up.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 4,000 May 67.50 calls for $7.60 and the sale of a similar number of May 77.50 calls for $2.85. Volume was more than triple the previous open interest in each strike, indicating that new positions were implemented.
The trade cost $4.75 and will inflate to $10 if HLF closes at $77.50 or higher on expiration. That would be profit of 110 percent from a move of about 12 percent in the underlying share price."
Shares or options? If you have long options, try selling some options short against them. This should lower your risk while also providing more cash for trading.
I am using a iPad Mini
The first tap will show a preview of the original message. The second tap will open the original and all of the linking messages.
A friend of mine asked me to recommend an option strategy for DNDN. She wanted a strategy which would return 100% for the year without requiring DNDN to rise in price.
Here is what I recommended: Buy the Jan 2015, 2.00/3.00 call spread for a debit of 0.50 or less
Today as a test run, she was able to buy 5 of these call spreads for a debit of 0.48 when DNDN was at 2.99
The way she sees DNDN for this year, it will either double in price, drop below 1.00, or stay range bound between 2.50-3.50. The good thing about this strategy is that a rise in price is not required to make 100%. Also, the spread could be closed out early for a profit should the pps rise before Jan exp. Break even would be if pps is at 2.48 at options exp. She is thinking of doing around 100 of these spreads for her initial position. I am recommending that she add to her position should the pps drop, after she has established her initial position. For example, do the Jan 2015, 1.50-2.50 call spreads if the pps drops to around 2.50.
On 1-15-14, BAC hit a high of 17.42, up 0.63
Today's high so far is 17.31, up 0.59
WIll have to see if it is a double top or break through to a new high.
A lot of volatility and fear in the market together with new highs is good for the gov. They do not want investors who buy and hold forever. The gov is getting a piece of all the taxable transactions.
The value of all the stocks in the S&P500 at today's close is approximately 16.6 trillion. Anyone know what all the stocks on all of the exchanges are worth? Imagine what the gov could collect in tax revenue if the market were to double in the next 6 years as some have predicted. It is conceivable that the gov could pay at least a substantial portion of the national debt if they can keep the rally going.
I had made a couple of different buys during the week of Feb. 17 for an average debit of 0.65
Not sure what the VXX price was when the spreads were done.
Since this was done as a hedge, it is only around 2% of my account. I am usually trading around 10 different stocks so as to provide diversification.
Don't forget Carl Icahn. He knows that he can move the market. If he could make a big profit from a trade in JCP, he would do it just to get back at Bill Ackman.
I am still holding the VXX March22, 50/ 60 call spreads for a debit of 0.65
If VXX hits 50 next week, I should be able to close out the spread for 3.50
The selloff had occurred at 2:46PM
The Bloomberg news article which came out today has a dated time of 1:56PM, "Sears, Secret Service Said to Investigate Possible Data Breach"
Is it possible that this news article was what had caused a large holder/holders to sell.
I would presume that professionals in the trade would have access to the news from the services in advance of when the news is released to the general public.
Option time premium ATM for March options is now around 10%.
With SHLD at 39.50, the March 43/37 put spread can be done for a debit of 3.30
The buyer of this spread would be paying nothing for time premium.
What about the IV crush after earnings? Even if the share price were to drop to 35 after earnings, the price of these puts would probably stay around the same price as they were when the share price was 38 before earnings.
It is supposed to have a 5.2 inch display. I find the Note 3 a bit too large. This new size will be perfect for me.
The iPhone 6 is rumored to have a 4.7 inch display. Without any info about the new Apple iPhone, how is AAPL going to hold up on Monday after the release of the new Samsung S5?
I am playing the long side of VXX a bit more conservatively so I bought some March 50/60 call spreads today for a debit of 0.65.
Warren Buffett drinks on average 5 12oz cans of cherry Coke every day. That adds up to around one gallon every two days.