Optioneering Newsletter April 1

Optioneering Newsletter
April 1, 2018
Mini Dow Futures Monthly
We trade with the trend and the long-term trend is up. The bears have had the
momentum recently. The current pullback is expected to be followed by a
continued bull trend.
The first profit opportunity we will consider this week is in BPMC, or Blueprint
Medicines Corporation. Blueprint Medicines Corporation is a
biopharmaceutical company that develops drugs of small molecule kinase
inhibitors that target genomic drivers in various cancers and rare genetic
diseases.
BPMC Monthly
The monthly chart shows that BPMC has been in a strong bull trend since the
2016 low. The pullback from this month’s record high is expected to yield to a
further advance.
BPMC Daily
The daily chart for BPMC has a clear bullish pattern of higher highs and higher
lows. The pullback to the Lower Keltner Channel gives us a new buying
opportunity.
We are going to review a Call Debit Spread for BPMC.
Traders who want a more leveraged approach could consider buying BPMC
calls. BPMC has options expiring in April, May, July, and October.
Buy to Open BPMC May 18th expiration 75-strike Call Sell
to Open BPMC May 18th expiration 90-strike Call
We can see from the Call Option Spread Analysis Calculator that if the
BPMC stock price stays where it is or increases in price when the
options expire, the spread will make a 60.4% or $565 profit. If the BPMC
stock price declines by -2.5% when the options expire, the profit will be
54.1% or $506. If BPMC is down -5% at option expiration, the spread
will make 29.6% or $277. If BPMC is down -7.5% when the options
expire, there will be a 5.1% or $47 profit.
The next profit opportunity we will review this week is in USD. USD, or the
ProShares Ultra Semiconductors, seeks daily investment results that
correspond to two times the daily performance of the Dow Jones U.S.
Semiconductors Index.
USD Monthly
This monthly chart shows that USD has been very bullish since the 2016 low.
USD Daily
The daily chart also shows that USD has been very bullish since 2016. The
pullback from last month’s new record high gives us a buying opportunity.
We are going to review a Call Debit Spread for USD.
Traders who want a more leveraged approach could consider buying USD
calls. USD has options expiring in April, May, June, August, and November.
Buy to Open USD May 18th expiration 115-strike Call
Sell to Open USD May 18th expiration 126-strike Call
We can see from the Call Option Spread Analysis Calculator that if the USD
ETF price declines by -5%, stays where it is, or increases in price at option
expiration, the spread will show a profit of 39.2% or $310. If USD is down
-7.5% when the options expire, the spread will make an 18.4% or $146 profit.
The next profit opportunity we will review this week is in RUSL, the Direxion
Daily Russia Bull 3X Shares ETF. RUSL strives to achieve daily results that
are 300% of the performance of the Market Vectors Russia Index.
RUSL Weekly Chart
The weekly chart shows that RUSL has been in an overall bull trend since
the low in early 2016.
RUSL Daily Chart
The daily chart also shows that the overall trend in RUSL has been up since
last early 2016. The pullback to the Lower Keltner Channel gives us a new
buying opportunity.
We are going to review a Call Debit Spread for RUSL.
Traders who want a more leveraged approach can buy RUSL calls. RUSL
has options expiring in April, May, June, and September.
Buy to Open RUSL May 18th expiration 45-strike Call
Sell to Open RUSL May 18th expiration 55-strike Call
We can see from the Call Option Spread Analysis Calculator that if the RUSL
ETF price declines by -5%, stays where it is, or increases in price when the
options expire, the spread will make a 37%, or $270 profit. If RUSL is down
-7.5% when the options expire, the spread will make a 17.9% or $130 profit.
The last profit opportunity we will review this week is in TNA. TNA is the
Direxion Daily Small Cap Bull 3x Shares ETF. TNA strives to achieve daily
results that are 300% of the performance of the Russell 2000 Small
Cap Index.
TNA Monthly
TNA hit a new record high in January. New record highs are bullish. The
current pullback is expected to yield to a further advance.
TNA Daily
The daily chart for TNA clearly depicts a bull trend. The pullback to the Lower
Keltner Channel gives us a buying opportunity.
We are going to review a Call Debit Spread for TNA.
Traders who want to employ a more leveraged approach can buy TNA calls.
TNA has options expiring every week until May 18th. After that, TNA has
options expiring in May, June, July, October, January 2019, and January
2020.
Buy to Open TNA May 18th expiration 55-strike Call
Sell to Open TNA May 18th expiration 65-strike Call
We can see from the Call Option Spread Analysis Calculator that if the TNA
ETF price declines by -2.5%, stays the same as it is now, or increases in
price when the options expire, the spread will show a profit of 32.5% or $245.
If TNA is down -5% when the options expire, the profit will be 18.8% or $142.
If TNA is down -7.5% when the options expire, the spread will lose -3.5% or
-$26.
EARNINGS SEASON: There are four “Earnings Seasons” a year. The seasons begin in
January, April, July, and October and they each last about two months. The earnings
reports can have an impact on the stock price. We don’t know if the impact is going to
be positive or negative (or nothing at all). It’s up to you to decide if you want to be in a
trade when the earnings report is announced. Here’s a link for a page that can help you
keep track of the report dates:
https://www.earningswhispers.com/calendar
Note: Profit performance displayed in this newsletter does not include transaction
costs.
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

Optioneering Newsletter April 1

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Optioneering Newsletter

Mini Dow Futures Monthly

We are going to review a Call Debit Spread for BPMC.

We are going to review a Call Debit Spread for USD.

We are going to review a Call Debit Spread for RUSL.

We are going to review a Call Debit Spread for TNA.

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