This Week’s Cash Cow I’d Like - Weeklyoptiontrade

Transcription

August 21st 2013Note: This newsletter includes some trading ideas following Chuck Hughes’ trading strategiesalong with educational information. For a complete listing of Chuck’s exact trades, includingspecific entries and exits and real time Portfolio tracking, please call Brad at 1-866-661-5664 or310-647-5664.In this week’s Cash Cow newsletter I’d like analyze the recent performance of theS&P 500 Index, and look at several new profit opportunities.After a volatile session today, the S&P 500 Index ended -.58% lower. This marksthe 5th losing session in a row.The S&P 500 has declined nearly 4% since reaching all-time highs earlier thismonth. The SPX is currently trading below the lower Keltner Channel. Similardrops this year produced subsequent rallies that lasted several weeks on1

average. The major U.S. Indexes remain in a 50/100-Day EMA uptrend despitethe recent correction. If this trend resumes, we could see a similar rally inupcoming weeks.Taking mostly spread positions last week has thus far worked out better thantaking just directional trades, as the market declined during this time period butour spreads can profit if the market remains flat or slightly down by theirSeptember 2013 expiration. This shows the benefits of taking further outexpirations when market uncertainty is high like it has recently been. If we hadtaken all directional weekly positions we would have been crushed this week.According to their Keltner Channel positioning, the U.S. Markets are all relativelyoversold right now. This could provide a good entry point for call optionpurchases on select stocks.The first profit opportunity I’d like to show you this week is SBUX (Starbucks):2

We recently looked at Starbucks due to the company’s favorable financials andtechnicals. The stock is currently headed back up after crossing below the middleKeltner Channel.We can take advantage of future price appreciation by initiating a weekly calloption purchase on SBUX for the August 30th expiration.The next profit opportunity I’d like to show you this week is CBOE (CBOEHoldings):3

CBOE Holdings operates markets for the trading of listed and exchange tradedoptions contracts.Looking at the price chart, we can see that CBOE is currently in a strong priceuptrend that is confirmed through the presence of an up-sloping On BalanceVolume.We can also see from the price chart that CBOE is showing a Slow STO bullishdivergence.With these favorable attributes, we should consider entering a call optionpurchase on CBOE for the September 21st expiration, as CBOE does not offerweekly’s.The last profit opportunity we’ll look at this week is OCR (Omnicare):4

Omnicare operates as a healthcare services company that specializes inmanagement of pharmaceutical care in the United States and Canada.We can see from the price chart that this stock has largely ignored the marketcorrection and has been in a strong uptrend for several months.After a minor pullback, OCR is trading near the middle Keltner Channel. Thispresents a good entry point for a call option purchase or covered call.We should consider purchasing a call option or covered call on OCR for theSeptember 21st expiration, as OCR does not offer weekly’s.Click on the link provided below to access the Cash Cow Archive.Cash Cow Newsletter Archive: http://weeklyoptiontrade.com/archive.html5

Note: 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 1-866-661-5664 or 310-647-5664. In this week’s Cash Cow newsletter I’d like analyze the recent performance of the S&P .