Optioneering Newsletter

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Rolf Knight
6 years ago
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1 Optioneering Newsletter December 10, 2017 Mini Dow Futures Monthly The Mini Dow futures rallied to another new record high on Monday. New record highs are bullish. The next target is 25,000. The first profit opportunity we will consider this week is in JUNO, or Juno Therapeutics, Inc. JUNO is a biotech company that develops advanced immunotherapies for cancer patients.

2 JUNO Monthly The monthly chart shows that JUNO has been going almost straight up for over a year.

JUNO Daily The daily chart shows that the overall trend in JUNO has been up since the chart started last December. The bull move really got going in August.

3 JUNO Daily The daily chart shows that the overall trend in JUNO has been up since the chart started last December. The bull move really got going in August. The pullback from the December 4 th record high gives us a buying opportunity. We are going to review a Call Debit Spread for JUNO. Traders who want more leverage can buy Juno calls. JUNO has options expiring in December, January, February, May, January 2019, and January 2020.

Buy to Open JUNO January 19 th expiration 47.50-strike Call Sell to Open JUNO January 19 th expiration 57.

4 Buy to Open JUNO January 19 th expiration strike Call Sell to Open JUNO January 19 th expiration strike Call We can see from the Call Option Spread Analysis Calculator that if the JUNO stock price stays where it is or increases in price when the options expire, the spread will make a 56.3%, or $360 profit. If JUNO is down -2.5% when the options expire, the profit will be 51.3% or $328. If JUNO is down -5% when the options expire, there will be a 28.4% or $182 profit. If JUNO is down -7.5% when the options expire, the spread will make a 5.5% or $35 profit. The next profit opportunity we will review is in OSTK, or Overstock.com. Overstock.com is an online `closeout` retailer offering discount, brand-name merchandise for sale over the Internet. Their merchandise offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.

5 OSTK Monthly OSTK quadrupled in price from the August low to the November high. That s a strong stock!

OSTK Daily The daily chart for OSTK shows the new record high last month. The pullback to the Lower Keltner Channel gives us a buying opportunity. We are going to review a Call Debit Spread for OTSK.

6 OSTK Daily The daily chart for OSTK shows the new record high last month. The pullback to the Lower Keltner Channel gives us a buying opportunity. We are going to review a Call Debit Spread for OTSK. Traders who want a more leveraged approach could consider buying OSTK calls. OSTK has options expiring every week until January 26 th. After that, there are options expiring in March, June, January 2019, and January 2010.

7 Buy to Open OSTK January 19 th expiration 35-strike Call Sell to Open OSTK January 19 th expiration 45-strike Call We can see from the Call Option Spread Analysis Calculator that if the OSTK stock price stays where it is or increases in price when the options expire, the spread will make a 69.5%, or $410 profit. If OSTK is down -2.5% when the options expire, the profit will be 51.7% or $305. If OSTK is down -5% when the options expire, there will be a 32.6% or $193 profit. If OSTK is down -7.5% when the options expire, the spread will make a 13.5% or $80 profit. The next profit opportunity we will consider this week is in LOXO, or Loxo Oncology, Inc. Loxo Oncology specializes in developing highly selective medicines for patients with genetically defined cancers.

8 LOXO Monthly The monthly chart shows that the LOXO stock price went straight up from last November until this September. The pullback from the all-time high is expected to yield to a further advance.

9 LOXO Daily The daily chart shows the strong bull move from last November until this September. Recent trading suggests that the pullback from the September high could be over and the uptrend could be resuming. We are going to review a Call Debit Spread for LOXO. Traders who want to employ a more leveraged approach can buy LOXO calls. LOXO has options expiring in December, January, March, April, May, and June.

Buy to Open LOXO January 19 th expiration 70-strike Call Sell to Open LOXO January 19 th expiration 80-strike Call We can see from the Call Option Spread Analysis Calculator that if the LOXO stock

10 Buy to Open LOXO January 19 th expiration 70-strike Call Sell to Open LOXO January 19 th expiration 80-strike Call We can see from the Call Option Spread Analysis Calculator that if the LOXO stock price declines by -2.5%, stays the same as it is now, or increases in price when the options expire, the spread will show a profit of 31.6% or $240. If LOXO declines by -5% when the options expire, the profit will be 18.3% or $139. If LOXO is down -7.5% when the options expire, the spread will lose -9% or -$69. The last profit opportunity we will consider this week is in AMBA, or Ambarella, Inc. Ambarella is a developer of low-power, high-definition (HD) and Ultra HD video compression and image processing products. The company s products are used in a variety of HD and Ultra HD cameras including security IP-cameras, sports cameras, wearable cameras, flying cameras and automotive video camera recorders. Ambarella compression chips are also used in broadcasting TV programs worldwide.

11 AMBA Monthly The monthly chart for AMBA shows a very deep pullback from the 2015 high to the 2016 low. A higher low bottom appears to be in place at the September low. If so, it could mark the beginning of a new bull move.

AMBA Daily The daily chart shows that AMBA has been very bullish since the September low. The recent pullback gives us a buying opportunity. The next targets are 65 and 75.

12 AMBA Daily The daily chart shows that AMBA has been very bullish since the September low. The recent pullback gives us a buying opportunity. The next targets are 65 and 75. We are going to review a Call Debit Spread for AMBA. Traders who want to employ a more leveraged approach can buy AMBA calls. AMBA has options expiring every week until January 26 th. After that, there are options expiring in February, May, January 2019, and January 2010.

Buy to Open AMBA February 16 th expiration 47.50-strike Call Sell to Open AMBA February 16 th expiration 57.

13 Buy to Open AMBA February 16 th expiration strike Call Sell to Open AMBA February 16 th expiration strike Call We can see from the Call Option Spread Analysis Calculator that if the AMBA stock price declines by -2.5%, stays where it is, or increases in price when the options expire, the spread will make a 46% or $315 profit. If AMBA is down -5% when the options expire, the spread will make a 24.8% or $170 profit. If AMBA is down -7.5% when the options expire, the spread will make 3.3% or $23. EARNINGS SEASON: There are four Earnings Seasons a year. The seasons begin in January, April, July, and October and they each last about two months. The earnings reports can have an impact on the stock price. We don t know if the impact is going to be positive or negative (or nothing at all). It s up to you to decide if you want to be in a trade when the earnings report is announced. Here s a link for a page that can help you keep track of the report dates: Note: Profit performance displayed in this newsletter does not include transaction costs.

14 This newsletter includes some trading ideas following Chuck Hughes trading strategies along with educational information. For a complete listing of Chuck s exact trades, including specific entries and exits and real time Portfolio tracking, please call Brad at or

Cash Cow Newsletter April

Cash Cow Newsletter April 29 2015 In this week s Cash Cow newsletter I would like to start by showing you an interesting wedge pattern in the S&P 500: The low we experienced in October was an important