Forgotten Profits Trade Setup Archive

Over the last few days, shares of DuPont (DD) have popped about 15% on news of the CEO departure. But unless there’s a significant change – and upside – in the commodities sector, I see very little to get excited about with this stock.

Plus, the company just cut is profit outlook again admitting it now expects operating EPS of $2.75 as compared to previous guidance of $3.10. In July, it cut its outlook to $3.10 from $4.

Sorry, but that’s not worth 15% upside. The company can change CEOs all it wants, but I see no reason to get excited about this stock. It’s oversold technically, as it over-extends on MACD and RSI.

Consider buying to open the DD November 2015 55 put up to $2.50 tomorrow morning.

Ian L. Cooper
Forgotten Profits

Let’s keep this quick and short.

I’m diving into some new opportunities for Forgotten Profits, but wanted to make sure you received this recommendation quickly.  After briefly dipping under 16,000, the Dow is now down 302 points to 16,011.  It’s a mess.  At this point, we could easily retest 15,550 lows of August 2015.

The NASDAQ doesn’t look any better. Consider adding a QQQ November 2015 99 put up to $3.80.

The last time I traded IOC I picked it up personally around $15 a share…

I would watch it explode to $90 a share years later, buying the dips, selling the rips.

At the moment, IOC is again dipping into oversold territory on MACD, and RSI. Money Flow has been rebounding at a considerable rate.

Goldman Sachs also just added the stock to its Conviction Buy list with a PT of $45 a share.

The technical picture for IOC is tough to ignore, despite oil price concerns.

Consider buying the stock up to $38 and / or the IOC December 2015 35 calls at market.

Until next time, take good care…

Ian L. Cooper
Forgotten Profits

If you’ve been watching the market, you know it’s been a crazed mess…

One day, we’re down 500. The next day, we’re up 200… It’s insanity. But, it’s still tradable. In fact, if we pay attention to the herd, they’re actually pointing to big potential wins…

For instance, Ambarella (AMBA) is down more than $12 today on a warning. However, it’s now become aggressively oversold using our technical indicators. It’s also sitting at its 200-day moving average, which has served as great support dating back to September 2013.

If AMBA can hold this level, we should be able to milk a very quick gain from a likely move higher. Be cautious, though. Buy only a small number of call options here. Don’t risk the house. The fear is still absurd, but I believe most has been baked in.

Knowing that, consider buying to open the AMBA November 2015 80 call at market. It currently trades with a bid-ask of $7.70 x $8.40.

I’m also recommending that you take a small position in GPRO calls, as well… It’s also excessively oversold on our technical indicators. It’s also sitting at triple bottom support. If this holds, we can make some quick money on a likely oversold pop. Here, too, be cautious. There’s still a great deal of fear.

Knowing that, consider buying to open the GPRO January 2016 42 call up to $6.

Hold all other open positions, as well.

Ian L. Cooper
Forgotten Profits

On August 26, I recommended that you consider a position the McDonald’s (MCD) October 92.50 call and the December 92.50 call, as they traded at $2.75 and $4.20 respectively.

Today, after an impressive move, consider selling to close both of those positions. The MCD October 92.50 calls now trade around $5.65. And the MCD December 92.50 calls now trade around $6.85.

Not too bad for a trade issued two days ago…

Stay tuned for new trades shortly.

Ian L. Cooper
Forgotten Profits

On August 19, I recommended that you close a MCD call and open a MCD October 100 put. If you bought in, consider selling to close the position now to secure gains.

McDonald’s along with many other stocks were beaten silly, as the Dow fell more than 1,700 points over the last seven sessions.

That’s brutal.

After you close the MCD put, consider going long MCD again. The stock is now oversold and could rebound shortly off recent lows. RSI and MACD alone are on the floor and could reverse at any time.

While there’s still considerable risk in the overall market, consider buying to open a small position in the MCD December 2015 92.50 call up to $4.50 and / or the MCD October 2015 92.50 calls up to $3. I’m just looking for a quick gain here on a rebound before we exit and move on to the next moneymaker.

Ian L. Cooper
Forgotten Profits

P.S.  We are now on Twitter @TraderInsight2.  Look for our new Chart of the Day features.

Last night, I recommended that you consider exiting just half of the DIA November 174 put for solid gains. This option last traded around $10.65. I’m now recommending that you exit the second half of the put option here to secure even more gains.

I’m also recommending that you sell to close the second half of the DIA November 177 put for triple digit gains.

I believe we are now over-extended to the downside, and overdue for at least a dead cat bounce. Without risking too much (2-5 contracts at most), consider buying to open a VXX October 2015 19 put up to $3.

This trade carries a great deal of risk. Do no risk much on it. I just believe – given technical reads – that we could see a near-term reversal in the markets.

Also, sell to close the Facebook (FB) September 92.50 put for gains.

Hold all other open positions.

Stay safe out there.

Ian L. Cooper
Forgotten Profits

As we’ve been saying for quite some time, this is not a safe market.

Today’s plunge was proof of that. But what’s scary is that it’s far from over. We just broke late 2014 support could very easily plunge to 16,000.

We have to be prepared for anything.

Our DIA November 2015 174 put now trades just over $9 from our $5.90 entry. Consider exiting half to secure gains.

Take good care,

Ian L. Cooper
Forgotten Profits

I was on vacation the other day with family. I didn’t have to pay which made it even more relaxing. Some how they talked me into swimming with dolphins…

My dolphin was a bit, well… aggressive and overly “affectionate.”

Perhaps it was the wet suit I was forced to wear.

I’ll spare you the pictures, and the nightmares of seeing that. I won’t get graphic but it was bad. Real bad.

Oddly enough, I still worked on vacation, watching the markets dip and rally, dip and rally… and well… dip and rally, as it continues to do today.

We were just down 200 on the Dow about two hours ago. Now, miraculously we’re only down 23. Wow. I don’t expect this rebound to last long, though.

While it’d be nice if the Dow caught support and rebounded, it’s not likely. We’re nearing the 17,250 mark I’ve long talked about. If that breaks, too, our next levels of support are 17,000 and 16,000…

It’s a mess out there.

While it may be a bit early to close the DIA November 177 put for gains, I’m doing so anyway. Knowing this market, traders will attempt to push it higher on nothing, immediate-term, only to watch it all fall apart as we’ve predicted for quite some time.

I’m also recommending that you sell to close the MCD August 97.50 call for solid gains today. I don’t believe the new 52-week high can hold. In fact, at such nosebleed levels, consider buying to open the MCD October 2015 100 put up to $2.70.

With MCD, all I want to do is take a quick profit on a move lower, near-term, collect my winnings and move on. This is another stock with a mind all its own.

Until we speak again, my friends take good care. If you have any questions, please feel free to reach me.

Ian L. Cooper
Forgotten Profits

“The worst is far from over, “ I noted on July 27, 2015.

The Dow had just broken previous support, we warned, and could send the Dow to 17,250 unless something big happens.

Since then, the Dow attempted to stage a move higher on nothing. But that has since failed as we now challenge double bottom support at 17,419.

If this support level fails to hold, the Dow could plunge to 17,250…

There’s nothing to get excited about in the market these days, unfortunately. But that doesn’t mean there aren’t ways to profit from it.

What I’d like to do here is recommend that continue holding the DIA November 177 put with solid gains, and consider buying to open the DIA November 2015 174 put up to $6.10.

At the same time, there are some ridiculously oversold stocks in the market, including Disney (DIS). It’s insanely oversold here.

The fear is priced into the DIS stock. It’s not going out of business. It hit a near-term snafu. It’ll bounce back just as it has every other time it sold off close to the 200-day moving average. Plus, RSI and MACD are on the floor, telling me a bounce – short-lived or not – is imminent.

I’m not really worried about the ESPN fears either.

One of the biggest reasons I’m excited about DIS growth, despite recent headwinds is Star Wars. The new movie – out later this year – could gross as much as $2.2 billion worldwide.

Consider buying the DIS stock up to $110 and / or the DIS January 2016 115 call option up to $4.15. Be patient with it.

We will talk again soon.

Oh, we’re also on Twitter now. Check out Trader Insight’s page @TraderInsight2.

Have a great weekend.

Ian L. Cooper
Forgotten Profits