Categories: Momentum Trader Alert HotlinesStock Market News

A ‘Visionary’ Tech Play and Booking Yet Another Triple-Digit Option Gain

It is a busy week for Momentum Trader Alert, with a new stock recommendation, taking a pair of double- and triple-digit-percentage option gains and a pursuing a new option recommendation on an existing position.

This week’s Momentum Trader Alert recommendation is yet another technology play. Here are the key details.

Founded in 1981 and headquartered in Natick, Massachusetts, Cognex Corporation (CGNX) is the world’s leader in the machine vision industry. The company designs, develops, manufactures and markets machine vision systems used for automating the manufacture of a wide range of discrete items and for assuring their quality.

Cognex Corporation (CGNX) vs. S&P 500 year to date.

Momentum Trader Alert Analysis

Recommendation

Buy Cognex Corporation (CGNX) at market today, and place your stop at $114.50.

I am holding off on recommending options in this position as they are currently overvalued after Friday’s big jump in the stock price.

Portfolio Update

Selling Options

Sell all of your Cigna Corporation (CI) November $185 calls, which last traded at $16.00, for a 200% gain.

Sell half of your Texas Instruments, Inc. (TXN) January $92.50 calls, which last traded at $6.70, for a 48.89% gain.

Buying Options

Buy the Raytheon Company (RTN) February $185 calls (RTN180216C00185000), which last traded at $6.20 and expire on Feb. 16.

Raising Stops

Raise your stop in CBOE Global Markets Inc (CBOE) to $110.20 lock in a 20% gain in the stock.

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.