We’re on Fire

This is completely ridiculous. Market flat, our positions are melting up.

I’ve finally erased my 2014 drawdown, as have many of our members in the last month. The rest of you will be made whole by the end of the summer.

Since I am on the road with a weak internet connection that isn’t transmitting voice very well, I have come up with this weeks trade ideas for you After Hours with Option Addict members.

Please login to view this weeks set-ups. Thus far, I took positions in MGM and SHLD July calls.

If I cannot get voice by tomorrow, we’ll have an After Hours with Option Addict “chat session” where I can answer questions for those in need.

Happy Trading,

OA

Congrats on another rock solid week guys. We’ve got a few remaining June positions that require attention this week, but barring any wildly horrific market action, we’ll continue to keep lining up set ups and knocking down wins.

I will be out of the office all day tomorrow, but will be back for After Hours with Option Addict on Tuesday and Thursday this week. I need to take advantage of this time off opportunity with my family. It’s been a long and difficult year this year, and a few days with them this week will go a long way.

If I trade out of anything tomorrow, I will mention it in the comments. Feel free to reach me via email for anything urgent.

Thanks and see you Tuesday.

OA

You can start to tell when the market transitions from a stock market (stocks following the direction and action of the indices) versus a market of stocks (indicies following the direction and action of stocks). I know it sounds funny, but there truly is a difference that we operate off of day to day to find opportunity.

As an example, I have 13 call option positions open. You’d think that with the market lower today that many of these positions would be red today. As it stands, only two one of the underlying stocks are down today (FB and SUNE).

Our After Hours with Option Addict watchlist last night included PCLN, SINA, YELP, SHLD and DECK. We also discussed solars as a decent dip buy with most of stocks in that space trading at known support levels.

What’s great about this market action today, is while several trades are working towards profit targets other good set-ups develop off this market weakness.

We’ll put together a “Trade of the Week” after market close today. I have a few decent ideas.

OA

I can’t say I’m too thrilled about any particular idea or chart that has crossed my screen today, so I’ll just ride out what I have.

I’m thinking about booking DRL, and will close FB a little closer to $67. $TWTR has been resilient today, so there might be hope for my weekly calls.

Since I got nothing good over here, what’s on your radar today?

OA

Late last week, solar stocks started to ignore the market strength and pullback a little into the weekend. We discussed this being an actionable set-up and to look for opportunities to buy dips.

My two largest positions are in FSLR and SUNE, and I also have short term call option plays on them, as well as JASO. I added a July call position in SPWR this morning, and am watching CSIQ down here at support.

SUNE, FSLR and SPWR are your group leaders here, and should lead the TAN in terms of new highs. As they start to move, you should see many of the beaten down players in this space, like CSIQ, make good sized swings to the upside.

In other news, I booked my gains in DECK and the remainder of GMCR this morning, and bought positions in DDD, TSLA, and XXII.

I might look to book DRL and YOD here to make room for some new cheap stocks this week.

More later,

OA

Way to finish out the week on a strong note. The timing on this GMCR was crisp, glad we mined this last night in After Hours with Option Addict. Feels good to be back to our norm again!

Speaking of which, next weeks watchlist is set. We’ll discuss after the close today.

For those that asked, in this particular option there were 12 contracts purchased at $215 per contract.

12 x 215 = $2580.

I sold half of those contracts at the bell for $9.

12 x 900 = $10,800, or a 315% gain in only 5 hours.

Even if you had only purchased one contract, this is the best way to take advantage of a big price swing without committing the capital required to buy the stock. In an environment like this where volatility is so cheap, you must learn how to apply these to your investment approach.

The key in options trading is proper position sizing. Trade in smaller and consistent bet sizes.

Have a good weekend,

OA