Trading

How to Smartly Bank on a Correction in Square Stock

If history rhymes, there’s more than just profit-taking to come in Square stock. Using a SQ put credit spread makes sense right now. Read Article

Apple Stock Is Ripening for a Buy

The tech sector is slipping, but Apple shares are holding firm. Profit from the relative strength with an AAPL stock put spread. Read Article

Go Long Alphabet Stock While Sentiment Is Bad

GOOGL sentiment has turned negative, but the fundamentals have yet to change. Go long Alphabet into earnings. Read Article

Trade of the Day: Advanced Micro Devices, Inc. (AMD)

After a sharp decline at the start of last week, AMD attempted to stage a rally on Wednesday, but it has since given up all of those gains again. With the stock down about 23% from its recent highs, the stock has fallen into a bear market, despite the company’s advantage over the Intel Corporation (NASDAQ:INTC), one of its primary competitors. Read Article

Will Dril-Quip Stock Continue to Range Trade Into Earnings?

Dril-Quip stock has been range trading for the past several months and the trend is likely to continue into earnings. Read Article

3 Big Stock Charts for Tuesday: Devon Energy, Adobe Systems and Interpublic Group of Companies

The stock charts of ADBE, DVN and IPG have earned a closer look for traders heading into today's action. Read Article

One Thing You Must Do to Become a Better Trader

Fellow Trader, As promised, this is Ken Trester back with Part 2 of this week’s coaching series How to Score Big Profits from Tiny Stock Moves. In Part 1, I shared my 3 proven principles of wealth-building and demonstrated how options trading lets you control stocks for pennies on the dollar. Today, instead of focusing on trading techniques, I want to explore the benefits of active trading, using my Power Options Weekly service as an example. So let’s get to it. Each Friday morning, I provide 5 hand-picked trades to my Power Options Weekly members. Then the power’s in their hands! If you’re like my members, you might use my 5 ideas (at least partially) as a starting point for their own trading plans… You might have limited funds and concentrate on market sectors you’re most comfortable with… Or take 1 or 2 real trades and “paper trade” the rest, as you learn… And — once you’re ready — jump right in with my full line-up of 5 calls and puts. My goal is to share a variety of trades — 5 each week — to meet all my members “where they’re at.” Because, either way…there is no better teacher than experience.

Earn 10-20 times the money from America's favorite stocks

Repetition helps you master any subject, and trading is no exception. That’s another reason why I share 5 new trades every week, 260 a year. With that many trades — even if you just follow along on paper to start — you are exposed to and learn from many different situations. How market trends affect trades; when to harvest winners; how to manage losers; position sizing; and much more. Let’s now take a look to see how two specific, recent triple-digit winners played out so that you can get an idea of the kind of profits you can expect. Profit Example #1: Cato Corporation (CATO) In mid-May, I recommended that my subscribers buy to open the Cato Corporation (CATO) Jul 20 Calls (CATO180720C00020000) at $0.50 or lower. Shares of CATO had been consolidating in a tight range for most of April, but they began to break out of that range just before we opened our bullish trade. After an initial move above the $17 level, we waited for the stock to pull back slightly so we could get into our option position at cheaper prices. We ended up getting our orders filled right at my maximum price of $0.50 per contract, which was great to see, but then the stock continued to move slightly lower over the next two days. We were watching the stock carefully for any signs of further weakness, but because it never closed below our stock sell signal price during our time in the position, we continued to hold in anticipation of another breakout. Sure enough, just four trading days later, shares of CATO jumped higher by more than 15% at the open, and our CATO July 20 call options more than doubled overnight. Our option profit target of $1.30 per contract was easily reached – and even exceeded – and we quickly closed the position for a whopping return of 160%. Had you traded 10 contracts for just $500 ($50 open price x 10), you would have turned that initial investment into a quick $1,300 ($130 close price x 10) – which equates to an $800 profit in under a week.

Earn 10-20 times the money from America's favorite stocks

Profit Example #2: eBay (EBAY) About two months later, we opened a bearish trade on eBay (EBAY) – the EBAY September 35 put options, which I recommended for a maximum price of just $0.70 per contract ($70). The stock had traded lower after its prior earnings report at the end of April, and we were expecting the same thing to happen when the company reported its latest earnings in July. Like clockwork, when eBay reported disappointing earnings the last time around, the stock collapsed by 10%, and our bearish put options skyrocketed in response. This time, the option did not trigger our profit target, so we sent out a quick alert to subscribers letting them know it was time to take profits and exit the trade. We did just that and, at our closing price of $1.67 per contract ($167), we secured a profit of over 138%. A 10 contract lot would have cost you $700 to enter at the price of $0.70 per contract ($70 x 10), which you could have sold in just four trading days for $1,670 ($167 x 10)! In other words, we doubled our money – and then some – once again in less than a week, bringing home a total profit of $970. This is one of the biggest mistakes I see new traders make — over and over again. They make an options trade and just sit there until the options expiration date. If they’re up in a trade, they hold on in hope of making more. If they’re down, they hold on, trying to get back to even. But profits aren’t profits until you bank them. And it’s often better to cut your losses and redeploy assets in a better trade. That’s why I have strict rules about how long we’ll hold a trade at Power Options Weekly. Tomorrow — in Part 3 of How to Score Big Profits from Tiny Stock Moves — I’ll explain why. It’s all about managing trades and your overall trading wallet to make your money work harder. So until tomorrow... Wishing you great trading, Ken Trester Power Options Weekly   Read Article

3 Energy Stocks to Play the Oil Boom

Oil prices are gushing and these three energy stocks will continue to benefit. Here's how to profit with XOM, XOP and COP. Read Article

How to Profit From All the Suffering in Matthews International Stock

The weakness in MATW stock is likely to continue as Matthews International bears the brunt of several headwinds. Read Article

Catch the Baidu Stock Falling Machete

Technically, BIDU stock should be coming into a longer-term pivot zone. It is approaching the bargain basement so buyers will step in soon. Read Article

Trade of the Day: Louisiana-Pacific Corporation (LPX)

Today I am recommending a bearish trade on the Louisiana-Pacific Corporation (NYSE:LPX), the North American manufacturer of building materials and products. The large-cap industrial stocks of the Dow Jones had been leading the charge last week, partially due to the new trade agreement between the United States, Mexico and Canada, though the index did fall slightly. I’m also still concerned about the trade situation with China, as that country is mostly likely not going to concede to the U.S., at least not anytime in the near future. Read Article

Amazon Stock Is Nearing a Prime Buy Zone After a Pullback

Recently, I've had a bearish outlook on AMZN. Now that Amazon stock has dropped sharply, my bearish view has tempered -- because price does matter. Read Article

With Costco Stock, Name Your Price and Save Big

Costco stock is cheaper, but if investors want a bargain a COST credit put spread is the right kind of merchandise to own. Read Article

3 Proven Principles for Building Wealth

Follow these principles to score big profits from tiny stock moves. Ken Trester explains how to use stock trades for building wealth. Read Article

3 Big Stock Charts for Monday: Western Union, BorgWarner and Apache

The stock charts of WU, APA and BWA merit a closer look from traders as the new week kicks off. Read Article

Sorry Mike Pence, GOOGL Stock Was Already a Short

Respect the price chart if nothing else in GOOGL stock. You can profit as a turncoat bear -- but one willing to be a patriotic bull at more opportune prices. Read Article

Do the Charts Point to a Looming Correction in Square Stock?

SQ stock will probably sink at some point in the foreseeable future. But it's probably not a good idea to bet against Square stock until its upward trend is over. Read Article

Profit From Oil Price Volatility With This United States Oil Fund Trade

Oil prices are bullish and yesterday's drop in USO screams opportunity. Here's how to sell USO puts for profits. Read Article

Costco Is Still a Long-Term Success — Buy the Dip

Costco management deserves the benefit of the doubt. A COST stock dip on one earnings report does not negate the long-term success. Read Article

Buy IWM to Wager That the Small-Cap Swoon Is Overdone

The iShares Russell 2000 ETF is extended its losses. But with support looming close, a rebound may be imminent. Sell IWM bull puts. Read Article