Categories: Momentum Trader Alert HotlinesStock Market News

Bet on Financial Sector Momentum and Booking 57.89% Option Gains

This week’s Momentum Trader Alert recommendation takes you into the booming financial services sector.

After underperforming the broader market for the first half of the year, the financial sector has exploded to the upside since second week of September.

American Express Company (AXP) provides travel-related services, financial advisory services and international banking services throughout the world. Founded in 1850 and headquartered in New York, New York, the company also offers the American Express Card, the Optima Card and other consumer and corporate lending products.

American Express Company (AXP) vs. S&P 500 year to date

Momentum Trader Alert Analysis

Recommendation

Buy American Express Company (AXP) at market today, and place your stop at $89.50.

I am holding off on recommending options on this position for now.

Portfolio Update

Sell your stock position in The Progressive Company (PGR) for a modest 5.63% gain.

Sell your remaining PGR November $46 calls, which last traded at $3.12, for a 64.21% gain. You already sold half of these options on Aug. 21 at $3.10 for a 63.16% gain.

You were stopped out of Altaba Inc. (AABA) on Oct. 25 at $66.35 for a 15.03% gain. Also, close your related recent option position at a small loss, if you have not done so already.

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.