Cash Cow Newsletter September

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1 Cash Cow Newsletter September In this week s Cash Cow newsletter we are going to briefly review the recent performance of the S&P 500 Index, and then look at several new profit opportunities. The S&P 500 Index held its ground this week and recently broke its short-term resistance: The Fed recently reaffirmed that a key short-term Interest rate would stay close to zero for an extended period of time after its bond purchasing program ends next month. This sent stocks higher in the afternoon. Only time will tell whether or not we will see continued growth from here. In the mean time we should continue to utilize a mix of spread and call purchase trades. 1

2 The first profit opportunity we ll look at this week is TQQQ (UltraPro QQQ ETF): TQQQ is a triple leveraged ETF that attempts to track (3x) the performance of the NASDAQ 100 Index. Triple leveraged ETF s carry more risk, but also carry higher premiums as a result. We can take advantage of high premiums and any future price growth by initiating a call option debit spread on this ETF. At current prices the TQQQ Oct 18 th 77/87-strike call option spread has a 33.3% or $250 profit potential. 2

3 Buy to Open TQQQ Oct 18 th 77-strike Call Sell to Open TQQQ Oct 18 th 87-strike Call We can see from this call option spread analysis that if TQQQ decreases -2.5%, remains flat, or increases at all in price by expiration we would profit 33.3% or $250. If TQQQ decreases - 5% by expiration we would still profit 4.1%. 3

4 The next profit opportunity we ll look at this week is LYB (LyondellBasell): LyondellBasell manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for the production of polymers. The stock has recently retraced to the middle Keltner Channel after rallying for almost 2 months. We can best take advantage of future price growth by purchase a call option on this stock. We should consider purchasing an In-the-Money call option on LYB for the October 18 th expiration. 4

5 The last profit opportunity we'll look at this week is UA (Under Armor): Under Armor develops, markets, and distributes branded performance apparel, footwear, and accessories for men and women. The company has a history of consistent Revenue, Equity, and Retained Earnings growth. After recently retracing near the lower Keltner Channel we are presented with a good buying opportunity. We should consider purchasing an In-the-Money weekly call option on UA for the September 26 th expiration. 5

6 Those wanting a less leveraged approach could initiate a call option debit spread. At current prices the UA October 18 th 57.5/70-strike call option spread has a 28.5% or $277 profit potential: Buy to Open UA Oct 18 th 57.5-strike Call Sell to Open UA Oct 18 th 70-strike Call We can see from this analysis that if UA remains flat by expiration we would profit 19.1% or $186. If UA increases at all in price by expiration we would profit 28.5% or $277. Note: Profit performance displayed in this newsletter does not include transaction costs. 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 Archive Click on the link provided below to access the Cash Cow Archive. Cash Cow Newsletter Archive: 6