Booking 16% Option Gains in a Software Giant

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

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.



Nicholas Vardy

Nicholas A. Vardy

Exclusive  The Highest Yields That Make Perfect Sense

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

previous article

The robotic surgery revolution is an important advancement in technology, as well as a great opportunity you can profit from.


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor