We have made available to readers of the Navivest Stocks and Options blog, today’s issue of our subscription based options trading advisory service, The Options Capitalist. It is an options trade on Constellation Energy Group (CEG). To download a copy, click here.

 Tags: Options Trade  Constellation Energy

The market seems to be headed up today, so we will hold off buying those puts on the Ultra S&P 500 Proshares (SSO) that we recommended in an earlier post. Let’s wait until after this bear market rally, see how things shake out today and maybe tomorrow, then we can enter the trade.

For today, lets instead look at calls on Salesforce.com (CRM). The stock was added to the S&P 500 after the close of trading on Wednesday 09/10, replacing Freddie Mac (FRE). The stock is now trading below the level it did after it popped on the news. We are looking for a move up to those levels at the very least, if we have a couple days of rallies.

The stock closed at $53.32 yesterday 09/17. We like the October 55 calls. Those last closed at 3.10. Enter at current prices up to $3.60 if the underlying stock looks to move up with the markets.

Once in, consider taking profits if the options are up 15-20% from where you entered, unless stocks are exceptionally bullish, in which case, try to squeeze out a few extra percentage points. Do however, remember we are in a bear market, so take early profits on long positions.
 

Tags: S&P 500  Trading Day  Trading Idea  Options

On September 5th, we recommended that readers of the Navivest Stocks and Options blog purchase the October 24 puts on the S&P 500 Index (SPY). The puts were trading at $2.39 when we recommended them. On Monday, with the Lehman (LEH) bankruptcy carnage on Wall Street, SPY lost 6 points, to close at $120.09. The puts now have a bid price of $6.65, for a gain of 178%. We also recommended puts on AIG in the same post.

Subscribers to our Options Capitalist options trading advisory have fared even better, as we have recommended puts on Goldman Sachs (GS), Morgan Stanley (MS), IBM (IBM), Caterpillar (CAT) and Wachovia (WB) in the last week. If you would like a free two week trial subscription to The Options Capitalist, click here.

Tags: Options Trading  Lehman  Goldman Sachs  Morgan Stanley

Navivest is offering a free two weeks trial to its Options Capitalist advisory service for options traders. The Options Capitalist is a twice a week subscription based service that provides trading recommendations for traders looking for explosive profits in options. With each issue, we target a 10-15% profit goal and we are currently averaging 30% monthly returns. To determine for yourself, start your free two week trial today. To do so, click here.

Tags: Options Trading

Even if Hurricane Ike does not end up causing major damage after it lands, it seems to be on a collision course for some of the major oil producing areas in the Gulf of Mexico. This should cause a scare that may propel oil prices higher. As such, it might behoove traders to purchase oil related stocks or call options in those stocks. We have listed some options trading ideas, but those who don’t trade options, can purchase the stocks.

These are risky trades, as oil has traded rather strangely in the past couple months, ignoring news at times, that should have cause a spike in crude prices.

Some of the trades we like, are:

Devon Energy (DVN) $92.44 - Buy the October 90 calls. The current ask price is $7.50.                      Apache Corp (APA) $109.01 - Buy the October 110 calls. The current ask price is $6.80.  

Tags: DVN  Hurricane Ike  Oil Stocks

This morning, we suggested that readers of the Navivest Stocks and Options blog buy the Capital One Financial (COF) September 50 puts and the Morgan Stanley (MS) October 42. We did not believe in the Fannie (FNM) and Freddie (FRE) induced rally.

The COF puts now have a bid price of $4.30, They opened at $3.10 this morning, that is a gain of 38% in a day, and the Morgan Stanley (MS) October 42 puts are now bidding at $3.8. The opening price was $3.10 on those as well. That is a gain of 22%.

Our rational for both trading ideas was the fact that we have economic news being released later on this week, that will probably drag the markets down. However, we have enough one day gains in the shares so we are suggesting that those who entered the trades exit today.

Navivest has a subscription based service, The Options Capitalist. Twice a week, we send out winning trading ideas such as these, with a target profit of 15-20% on each trade.

Yesterday, as stocks were rallying, we emailed our subscribers and told them to buy Goldman Sachs (GS) September 165 puts. We closed them out yesterday for a 36% gain. We also bought puts on Morgan Stanley (MS), Zions Bancorp (ZION) and Morgan Stanley (MS) and entered in the GS Sep 165 puts again and with the exception of the GS Sep 165 puts which we closed out for a gain of 22%, those trades are all up over 30% today.

If you’d like a free two week trial subscription to The Options Capitalist so you can get winning trades such as these, click here.

Tags: Options  Goldman Sachs  Zions Bancorp  Morgan Stanley

On Wednesday September 3rd on the Navivest blog, we recommended that traders buy the Boeing (BA) September 65 put options. The rational behind the trade was that one of Boeing’s unions which covers aircraft assembly employees, was set to vote on whether to accept or reject an employment contract that Boeing (BA) had offered the employees.

If the union rejects the contract, Boeing’s (BA) shares would see some pull back causing the put options to rise. We entered into the trade paying $1.30 for the put options. At the close of the stock market on Friday, those puts were quoted with a bid price of $3.10, a 138% gain.

When the union voted to reject the contract, the government got them to agree to postpone a strike for 48 hours while negotiations continued. Those negotiations failed Friday evening and the aircraft assembly workers are going on strike over the weekend. As a result, we should see further price decline in Boeing (BA) shares and should that happen, we will probably see another 100% rise minimum in the put options.

Subscribers to our Options Capitalist trade advisory are out of the trade, but readers of the blog should still be in it. These are September options, which expire on the 19th, plus the risks to Boeing (BA) are huge, so they may do what is necessary to bring an end to the strike ASAP which could send Boeing (BA) shares soaring. On that basis, we recommend that our readers be happy with a triple digit gain in a week, and exit the trade on Monday.

Tags: Boeing  Options trading

With the bloodletting on Wall Street yesterday, some market participants, will no doubt be taking a cautious stance and looking for the other shoe to drop. We do have an active slate for the day, on the economic calendar with Non-farm Payrolls, Unemployment rate, Hourly Earnings and Average Workweek all due to be reported today.

The bad news is; initial jobless claims numbers were reported yesterday and an unexpected rise in the number of people filing for unemployment for the first time, a rise of 15,000 from the prior week, was a major contributing factor to the big decline in stocks yesterday.

The good news is that all the economic news releases will be out at 8:30 AM, before the market opens, so traders get to plan their day after the fact.

But for the jobs numbers that will be reported today, we would look for stocks to rebound somewhat from the steep drop yesterday. So hopefully, its not its not all doom and gloom on the jobs front, even though we do expect another monthly decline, the eight consecutive one, in non-farm payrolls. Hopefully, Wall Street deems the numbers not negative enough to warrant another drop in stock prices.

If stocks open to the upside, we recommend traders buy call options on the S&P Deposit Receipts (SPY), more specifically, the September 124 calls. However, initiate the trade only if stocks look strong on the day, but before major moves, assuming we get any, and look to exit early. The symbol is (SPYIT) and the current price is $2.39. Enter at current prices up to $2.50 – stocks most likely won’t open at Thursday’s closing price and enter a price to sell after you place the trade, at 25% above where you entered.

Tags: Economic Calendar  S&P

Stocks are tanking today, with the Down down over 300 points on more of the same as unemployment data and retail sales numbers released today, showed that the economy is weak.

With the carnage on Wall Street today, we are looking for a temporary rebound tomorrow/Monday and traders should position themselves ahead of that move. Here are a couple trading ideas:

IBM (IBM) September 115 calls.

Amazon (AMZN) September 80 calls.

Tags: Options

Yesterday, we recommended that readers of the Navivest blog buy the Boeing (BA) September 65 puts because a Boeing (BA) employees union was going to be voting on whether to accept a contract that Boeing (BA) had offered.

The union voted to reject the deal and the stock is dropping today, currently off $1.65 to $64.42. The September 65 puts which we entered into at $1.50 are now up about 26%.

We will be getting crude inventories report today at 11 AM. If those numbers are bullish for oil prices and stocks continue to drop on the day, we suggest those that missed on the Boeing September 65 puts options trade yesterday get in, as we could see further decline in Boeing tomorrow. However, those in the trade, need to be out by close of markets on Friday, as Boeing (BA) might come back with an offer that the union accepts.

Tags: Boeing