Profit from Trump’s Sabre-Rattling and Booking 63.21% Gains in Call Options

With tensions between the United States and North Korea at an all-time high, the U.S. stock market is starting to feel the heat.

President Trump warned North Korea that if it does not refrain from its repeated missile threats, the U.S. will respond with “fire and fury.” The one sector that has benefited from Trump’s sabre-rattling is defense contractors.

At the top of this list from a momentum-trading perspective is The Raytheon Company (RTN).

The Raytheon Company (RTN) is one of the largest aerospace and defense companies in the United States and features a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services. Its notable missile system includes the Tomahawk cruise missile and an advanced surface- or submarine-launched cruise missile with loitering and network communication capability.

The Raytheon Company (RTN) versus the S&P 500 year to date

Momentum Trader Alert Analysis

Recommendation

Buy The Raytheon Company (RTN) at market today and place your stop at $167.50.

With the stock’s volatility exploding in recent days, options have become too expensive to recommend this week.

Portfolio Update

Sell one half of your CBOE Holdings, Inc. (CBOE) September $90 call options at $6.30 for a 63.21% 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.  

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