Categories: Alpha Algorithm HotlinesStock Market News

Booking 16% Option Gains in a Software Giant

With the market suffering its first pullback since the Brexit vote on June 23, and volatility in the market spiking to levels not seen since then, I am going to hold off on recommending a new Alpha Algorithm position today.

Nevertheless, I want to highlight that two previous positions you exited with about 10% gains each — Johnson & Johnson (JNJ) and Facebook, Inc. (FB) — both continue to be featured prominently in the Alpha Algorithm.

JNJ currently features in 13 Alpha Algorithm strategies and FB is present in 11, making them the two most popular stocks in the system.

That means that these two stocks are at the top of the list for potential re-entry once the market settles.

I plan to have a new Alpha Algorithm recommendation next week.

Portfolio Update

You stopped out of Facebook. Inc. (FB) on Sept. 8 at $129.90 for a 10.05% gain.

Recall that I recommended three speculative bearish bets on the market through Amazon (AMZN) October $755 puts (AMZN161021P00755000), Visa (V) October $77.50 puts (V161021P00077500) and Microsoft (MSFT) October $55 puts (MSFT161021P00055000).

Remember, as put options, these positions are designed to rise when the price of the stocks goes down.

As of yesterday’s market close, the Microsoft put options are “in the money” with a 16.36% gain.

Today, I am recommending that you sell all of your Microsoft (MSFT) October $55 puts (MSFT161021P00055000) for short-term double-digit percentage gains.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.