My Power Stocks system has flagged several non-bank financial companies as being in bullish trends. American Express (NYSE:AXP) in particular has excellent upside potential and Tri-Continental Corporation (NYSE:TY) is temporarily improved from a downtrend.
Sometimes you can catch momentum trading stocks like these, but you have to tie up a lot of capital to do so. Of all the stocks in my database, only a relative few give strong buy or sell signals in a given week. So I handpick the most volatile, liquid prospects,then run them through my proprietary computer programs again to find undervalued options to get the most bang for your buck.
In the case of financials, that trade is in H&R Block (NYSE:HRB).
Recommendation: Buy HRB Apr. 19 Call options at 80 cents or lower, when the stock price is about $18.70. After entry, take profits if the stock price hits $19.70 or the option price reaches $1.30. Exit if the stock price closes below $18.20 ot the option price falls to 60 cents.
Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.