Tuesday I wrote a column asking if Buddha would be a buyer of Washington Mutual (WM) (see “Would Buddha Buy Washington Mutual?”). The main point of the article was to highlight how those who follow Buddha stay in the now.
There is no future or past, only the now. My question today is what should investors be doing now?
While many experts suggest a buy and hold strategy that essentially puts all of the emphasis on the future, there are many who use trading strategies that can be used in the here and now.
Specifically, options traders focus on opportunities that can be exploited in the short term. No waiting for the future. With options, you make your move and know relatively quickly whether or not it was the right one.
Ken Trester’s Fast Options Profits cuts right to the chase. There is no time other than the present, and each and every day presents an opportunity to make money.
Over the last 6 months or so, we have seen a huge increase in volatility in the market. Such a state is an option-lovers dream. Large price swings and the leveraged nature of options create a perfect environment for now-based profits.
The only trick then is to know what positions to establish and when.
That’s where Fast Option Profits can help!
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The Trick to Options Trading
As Ken says in his latest missive, “The market is a moving parade.”
That means there are always opportunities on both the long and short side of the market that can be played with put or call options. At the moment, Ken is bullish. That means we will look to the long side of the market for a now trade.
Specifically, Ken is recommending that his subscribers buy the July $17.50 call options on Thoratec (TQUGW). That option is now trading for about $1. That’s significantly less than the $1.40 entry price for Ken and his readers, but that can change quickly.
Many are stating that technology shares are undervalued in the current environment going so far to state that the group will lead the entire market higher. Thoratec (THOR) is a medical technology company that specializes in the cardiovascular segment.
Like many stocks in the market, shares of THOR slumped on concerns over the economy. In fact, shares are down about $5 from their $21 52-week high. Those concerns may be overblown.
According to Ken, now is the time to take action. Shares have rallied off of a base of $13 and there could be more gains to follow. With a target price of $17.90 per share, Ken suggests taking half of your profits as the July call option should be trading for about $2.60.
If so that would be more than a 100% gain on your position if you bought today. Of course there is high risk with options so make sure taking such risk is suitable for your situation.
As I said, investors focused on the now have plenty of options, pun intended. If indeed we are in a new bull market investors can make a killing on TQUGW.
Free up your investing capital and your peace of mind with a trial subscription to Ken Trester’s options trading service, Fast Options Profits. With two trade recommendations every week that you can get into for less than $2 a piece, Ken aims to take the stress and the guesswork out of options trading. Start your RISK-FREE trial subscription to Ken Trester’s Fast Options Profits today!
