Categories: Momentum Trader Alert HotlinesStock Market News

Betting on an Insurance Giant and Booking Two Double-Digit Option Gains

The U.S. stock market continued its slow, but steady, “melt up”, as both the S&P 500 and Nasdaq broke out to new highs last week.

Overall, your Momentum Trader Alert portfolio fared much better than the broader market, with at least six positions gaining more than 2%. This week’s recommendation, insurance giant Progressive Corporation (PGR), is yet another large-cap stock with strong momentum.

The Progressive Corporation, through its subsidiaries, provides personal and commercial property-casualty insurance, as well as other specialty property-casualty insurance and related services primarily in the United States. The company sells its products and services through independent insurance agencies, as well as directly on the Internet, through mobile devices and over the phone.

The company was founded in 1937 and is headquartered in Mayfield Village, Ohio. The chart below compares its share-price performance to the S&P 500.

Progressive Corporation (PGR) versus the S&P 500 year to date.

Momentum Trader Alert Analysis

Recommendation

Buy The Progressive Corporation (PGR) at market today and place your stop at $43.50.

If you want to play the options, I recommend the PGR November $46 calls (PGR171117C00046000), which last traded at $1.85 and expire on Nov. 17.

Portfolio Update

With the stock market rallying to new highs, it’s time to both take and lock in some profits.

Sell half of your Weight Watchers International (WTW) August $33 calls (WTW170818C00033000), which last traded at $5.89, for a 90.00% gain.

Sell half of your Mastercard (MA) September $120 calls (MA170915C00120000), which last traded at $9.97, for a 68.98% gain

Raise your stop in Weight Watchers International (WTW) to $36.25 to lock in at least a 10% gain.

Raise your stop in MasterCard Inc. (MA) to $127 to lock in at least a 10% gain.

Raise your stop in Constellation Brands (STZ) to $196.50 to lock in at least a 10% gain.

Raise your stop in Ferrari N.V. (RACE) to $99.20 to lock in at least a 10% gain.

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.