Thursday, September 27, 2007

A Trade on Resources Connection Inc (RECN)

Dear fellow options traders :

Resources Connection Inc (RECN) is a company which provides outsourced professional services to corporate clients in the United States.

I checked that it would be reporting earnings on 25 Sep 2007 after market close.

There were not much news at for my fundamentals research on RECN but at the Yahoo Finance web-site I saw a report dated 4 Sep 2007 Market Spotlight: Staffing Companies where research analysts were forecasting tougher times for staffing companies. They felt that the slowing economy might significantly depress job creation in coming months due to tighter credit and problems in the housing sector.

Some of the staffing companies that have seen their share prices tumble recently include Robert Half International Inc., which had declined around 13 percent in the past three months. Shares of Kelly Services Inc. had lost around 19 percent, while Korn Ferry International, which reported fiscal first-quarter results recently, had also shed nearly 22 percent.

In another report from The Motley Fool, even a Motley Fool CAPS All-Stars Player frown upon this 5-Star Stocks Leader.

Based on the weakening of the staffing companies sector, I paper traded 2 contracts of Oct 30 Put @ $185.00 each on 25 Sep 2007 when RECN was trading around $29.30.

On 25 Sep 2007 after market closed, RECN reported Q1 (Aug) earnings of $0.23 per share, including stock based compensation expense and tax benefits, which might not be comparable to the Reuters Estimates consensus of $0.28; revenues rose 17.6% year/year to $194.1 mln vs the $197.4 mln consensus.

On 26 Sep 2007 before market opened, there were 5 downgrades of this stock from analyst and RECN gapped down -$5.50 to $23.83 when trading began. I observed the price, volume, and Level 2 data carefully before I close the position for $760.00 per contract, netting a profit of $1,120 after deducting commissions.

Related Trade in my Stock Options Trading Blog

A Resource Connection Q3 2007 Earnings

If you've managed to find out about the Live Freely! Seminar from my stock options trading blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Wishing you Profitable in your Options Trading too.

Yours Sincerely,

Tony Chai
Options Trading Resources

Friday, September 21, 2007

High Search Engines' Ranking for Your Blog/Web-Site

Hi friends :

Really appreciate Mr Edmund Ng, CEO of, for showcasing my options trading blog to demonstrate that the application of good white-hat SEO (search optimization) techniques can enable my blog to achieve high ranking in search engines like Google & MSN.

Edmund was kind enough to give a complimentary 3 full-days internet marketing workshop to a group of physically challenged members (including myself) at the Handicaps Welfare Association back in Feb 2007. He taught us the step-by-step techniques on how to go about setting up an online internet business from scratch and went on to show us all the SEO skills to optimize & how to drive traffic to our web-site. We were also very grateful to Edmund for giving us the 29 Steps Internet Marketing videos for free.

For a preview of his next Internet Marketing Seminar, you can go to this Link. If you want to find out more details about the 29 Step-by-Step Internet Marketing Videos DVD, you can Click Here.

In my opinion, the Internet Marketing Seminar conducted by Mr Edmund Ng and the Internet Marketing Videos DVD are both affordable, practical and useful. If you want to achieve higher search engines' ranking for your blog/web-site with good, no non-sense white-hat SEO techniques, I highly recommend that you check out Edmund's internet marketing seminar and DVD.

Yours Truly,

Tony Chai

P. S. The Internet Marketing Seminar & the 29 Step-by-Step Internet Marketing Videos DVD comes with a 1,000% money-back guarantee. That's how confident Mr Edmund Ng felt that Your internet business would be positively impacted by his white-hat SEO techniques. Edmund is also providing 6 months post support if you signed up for the seminar or buy the DVD.

Wednesday, September 19, 2007

A Trade on Best Buy (BBY)

Dear fellow options traders :

Checked that Best Buy (BBY), a specialty retailer of consumer electronics & related services, would be reporting earnings on 18 Sep 2007 before-market-opened.

Researched through and found that :-

1) On 9 Aug 2007, Best Buy (BBY) re-affirmed its 2008 outlook, as it foresee an 8.5% increase in revenues to $39 billion and same store sales to increase between 3%-5%. Earnings per share should range from $2.95 to $3.15, reflecting 6%-13% growth, and should benefit from the company's $3 billion accelerated share repurchase program, part of management's authorized $5.5 billion plan.

2) On 27 Jun 2007, Best Buy (BBY) authorized $5.5 bln share repurchase program. With lesser shares outstanding in the market, this might bring about an effect of higher EPS.

3) BBY is trading near its support of around $44.00 thus any good news like good earnings could lift the stock.

4) BBY is constantly compared to Circuit City (CC), another electronic products retailor, and BBY tends to stand out from CC's weakness.

5) There were some insider buying from company's executives in early Aug 2007.

Paper traded 2 contracts of Oct 45 Call on 17 Sep 2007 @ $140.00 each when BBY was trading around $44.30.

On 18 Sep 2007, Best Buy (BBY) reported Q2 (Aug) earnings of $0.55 per share, $0.11 better than the Reuters Estimates consensus of $0.44; Revenues rose 15.1% year/year to $8.75 bln vs the $8.45 bln consensus. The Co. reported Q2 comparable store sales +3.6%, driven by higher revenue from computers, flat-panel televisions, video gaming and mobile navigation.

Sold the 2 contracts @ $230.00 for a profit of $150.00 (excluding commissions).

But the biggest news has to be the larger-than-expected half percentage point cut of the Fed Funds Rate that the market so eagerly anticipated. The Dow Jones industrial average reacted by surging 335 points!! -- its biggest one-day point jump in nearly five years. Many quality stocks like Master Card (MA), Intuitive Surgery (ISRG), Foster Wheeler (FWLT) etc. rallied like rockets after the good news were announced.

If you've managed to find out about the Live Freely! Seminar from my stock options trading blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Wishing you Profitable in your Options Trading too.

Yours Sincerely,

Tony Chai
Options Trading Resources

Monday, September 10, 2007

2007 “Options Intensive” Live Trading and Investing Bootcamp

Dear fellow options traders :

LATEST : The Options University have just confirmed that a new speaker, Mr Tom Sosnoff, would be making a special appearance in the upcoming Option Intensive Workshop October 12-14th, 2007 in San Francisco, CA.

Mr Tom Sosnoff has traded options since his early days as a floor trader in Chicago, and bring with him many years of experience...

He's also the co-founder of a leading options trading brokerage, thinkorswim, Inc. .. so he knows a lot about what you need to know in order to be successful with options!

In a RARE public appearance, Mr Tom Sosnoff will be covering some little-known options tactics, and showing you some new cutting edge technology that will help you trade stocks and options more successfully.

To find out more, go HERE now ...

Last year, The Options University hand-picked some of the world's leading experts in critical areas of trading and investing – candlestick trading and technical analysis.

We're not talking about the same old re-hashed indicators and strategies that everybody else is already using. No, they taught new and powerful techniques and strategies that only a handful of people knew about, and almost no-one else was teaching...

They had attendees come to them in droves and tell them how much they got out of the event. But they wanted more...

So this year Mr Brett Fogle, President and CEO, and Mr Ron Ianeri, Co-Founder and Chief Options Strategist for The Options University, are taking it even a step further!

The Result Is The 2007 'Option Intensive' Workshop

A 3-Day Bootcamp / Workshop For Investors, Focusing on Options Trading and Finding the Best Opportunities to Trade Them.

Look, learning the basics are obviously important. But that will only get you so far. The bottom line is, you don't want (or need) a one-size-fits-all theory plan.

You want a detailed but straightforward blueprint to putting strategies into play no matter what the trading scenario...

* You want to know how to identify the right trading opportunities for you to get into.

* You want to know the right strategies to use in taking a position–not in theory, but ones that actually work in the real world. With real-world examples and specifics to draw from.

* And if something in the market should turn unfavorable towards your position, you want to be able to make intelligent changes on the fly that turn losing trades into winners. Or at the very least minimize your loss as much as possible.

The list of Super-Star Speakers lined up for this year 2007 'Option Intensive' Workshop would include ...

* Larry McMillan - The 'Experts' Expert on Options, Author of "Options As a Strategic Investment" & "McMillan On Options"

* Tom Sosnoff - "Options Expert, Former Floor Trader, and Co-Founder of Think or Swim, Inc.

* Price Headley - “Top 10” Stock Market Timer and Options Trader

* David “FirstWave” Elliott - Technical Analysis Wizard, and Twice Voted World's #1 Market Timer

* Stephen W. Bigalow - Candlestick Trading Expert

* Bill Johnson - Charles Schwab's "Expert For The Experts"

* And a few others...

including Mr Ron Ianeri himself, and they are going to cover all of that plus a whole lot more ...

But as I understand from Options University, it's going to be a very small event, just over 100 seats.

And they're gonna fill up quick.

That's why I don't know how long his site is going to be up. I recommend you check it out now before it's too late!!!

The 2007 'Option Intensive' Workshop

Just imagine when you have the right tools and strategies to select the best options for your goals–without dread or fear of losing money. Because you have the confidence and proven strategies to come out on top.

With the right road-map and a little time in the trenches, there's no reason why you can't pick the winners from the losers. To take up positions that match perfectly with your long and short-term goals.

And it doesn't matter whether you're spanking new to options trading, or if you're a twenty-year veteran.

If you trade options (or want to learn how to trade them more profitably), I urge you to go here now to find out all the details at :

The 2007 'Option Intensive' Workshop

Yours Truly,

Tony Chai

P.S. Brett and Ron also offer the best 'no-questions-asked' guaranty I've ever seen. They'll refund every cent if the workshop isn't everything they say it is, just for disappointing you...

And they'll also pay you $500 towards your travel expenses too.

So what do you have to lose? Hurry, seats are filling fast!!

The 2007 'Option Intensive' Workshop

Testimonials from Attendees of the 2006 Online Trading and Investor's Super-Conference ...

After being exposed to Options University I realized I have been taught options the wrong way. This has been a very rewarding weekend for me, as a matter of fact I learned quite a couple of things that I'm going to go back and work on that I have picked up from the conference this weekend.

- Joe Renno, Dallas TX

The conference has been more than I've expected, it's been phenomenal. We've had a great range of speakers and I've been trading options for a while.

I started with Options University a while back, got into the Options Mastery when it first came out and I've been rereading it religiously. You gotta continue going to learn, to minimize my risk.

That's another thing I picked today, just to be more attuned to how much I'm risking and how much I'm gonna profit. It's just phenomenal. As I said again the Speakers are great, they made me consider more of how I'm what I'm trading and how I'm trading and I fully expect the experience is going to be beneficial.

- Jesse, Detroit MI

Friday, September 07, 2007

A Trade on Guess? Inc. (GES)

Dear fellow options traders :

Checked that Guess? Inc. (GES), a renown maker of apparel and accessories for men, women, and children, would be reporting earnings on 4 Sep 2007 after-market-close.

According to a recent snippet in dated 27 Aug 2007, "Guess boasts a booming retail and wholesale business in Europe and is expanding operations in Asia and other parts of the world. For eight straight quarters, earnings and sales have grown by at least 67% and 16%, respectively. Guess is poised to keep up the pace when it reports fiscal 2008 second-quarter earnings on 4 Sep 2007."

On Friday, 31 Aug 2007, a few days before earnings announcement, GES even went up +$2.53 to close at $53.00.

I checked back GES most recent earning quarters & subsequent price gapping action after earnings announcement and found out that :-

1. Q1 earnings announcement on 5/6/07
On 6/6/07, GES gapped up about +$2.50 to $49.89

2. Q4 earnings announcement on 14/2/07
On 15/2/07, GES gapped up +$6.00 to $80.50 and went up another +$3.00 to close at $83.60.

3. Q3 earnings announcement on 1/11/06
On On 2/11/07, GES gapped up +$5.00.

4. Q2 earnings announcement on 2/8/06
On 3/8/06, GES gapped up +$2.00.

Noticed that GES has already gapped up 4 times after its earnings announcements mentioned above. I was a bit cautious trading a call towards GES earnings announcement this round because based on past experiences, some stock gapped down in the next earnings announcement after encountering around 3 straight gap-up following their earnings announcements.

For instance ..

Buffalo Wild Wings Inc (BWLD)

1. Q1 earnings announcement on 1/5/07
On 2/5/07, BWLD gapped up +$7.00 to $72.00.

2. Q4 earnings announcement on 15/2/07
On 16/2/07, BWLD gapped up +$4.85 to $54.84.

3. Q3 earnings announcement on 24/10/06.
On 25/10/06, BWLD gapped up +$7.00 to $48.00.

On the most recent Q2 earnings announcement on 31/7/07, BWLD gapped down -$7.00 to $36.50 after announcement. This gap down occurred after the 3 price gap-up followed by earnings announcement indicted above.

Another instance ....

Priceline.Com Inc (PCLN)

1. Q3 earnings announcement on 12/2/07
On 13/2/07, by 9.22am EST, PCLN reached +$3.64 to $49.57. By 10.09am EST, PCLN has climbed +$4.27 to $50.20.

2. Q2 earnings announcement on 8/11/06
On 9/11/06, PCLN gapped up +$3.00 to $43.40 but intra-day dropped back to close at $39.80.

3. Q1 earnings announcement on 7/8/06
On 8/8/06, GES gapped up +$3.40 to $29.80.

On its Q4 earnings announcement on 8/5/07, PCLN gapped down -$2.00 to $62.00 and went down intra-day another -$4.00 to $58.00 on 9/5/07.

The reason why a stock might gap down after experiencing a few successive quarters of gapping up from good earnings could be due to the high expectation that was built into the stock to perform better & better for every subsequent earnings. Thus, when the company did not report an "outstanding" earnings quarter together with upside guidance, the market would react negatively towards the earnings announcement and would sometimes punish the stock price ruthlessly.

After GES 4 previous gapping up due to good earnings, I expected high expectation to be built into the earnings this round. On 4 Sep 2007, I paper traded a Sep 50 Put @ $155.00 per contract when GES was around $53.50. Noticed how expensive the premium of the Sep 50 Put was, inflated with high implied volatility and it was out-the-money by a whopping $3.50!!!

On 4 Sep 2007 after market closed, GES reported Q2 earnings of $0.40 per share, $0.07 better than the Reuters Estimates consensus of $0.33; revenues rose 48.2% year/year to $388.3 mln vs the $345.6 mln consensus.

The company issued in-line guidance for FY08, expecting EPS of $1.79-1.84 up from $1.75-1.80 prior guidance vs. $1.83 consensus; expecting FY08 revs of $1.56-1.60 bln vs. $1.57 bln consensus.

As you can see, GES did not report a bad Q2 quarter. But the market might have reacted badly to its in-line EPS & Revenue guidance for FY08. On 5 Sep 2007, GES gapped down -$3.50 to $49.80. I sold the Sep 50 Put for $220.00 with a profit of just $35.00 (after deducting commissions).

If you've managed to find out about the Live Freely! Seminar from my stock options trading blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Wishing you Profitable in your Options Trading too.

Yours Sincerely,

Tony Chai

Wednesday, September 05, 2007

Trading Secrets of Top Wall Street Floor Traders

Dear Fellow Traders :

For the first time in Singapore, Mr Ron Ianeri, co-founder of The Options University, and Chief Options Strategist for The Options University, is giving a FREE Options University Introductory Workshop on the 5th to 7th September, 2007 at the Amara Hotel, Singapore, Ballroom 1 Level 3.

In the free workshop, you'll learn to :

# Find explosive money making opportunities within minutes a day
# Make huge profits even as the market crashes
# Make consistently monthly profits
# Learn to Trade successfully and safely directly from the experts on Wall Street
# Learn options strategies like covered calls, spreads, straddles and strangles the right way

The exact strategies and techniques that Mr Ron Ianeri is going to share with you have created millions and millions of dollars of wealth for his client's accounts. And he is holding absolutely nothing back in his live classes!

He understand that some of the concepts that he teach may seem totally foreign to you. Don't worry about that. Mr Ron Ianeri has a knack for making things very simple and easy to understand. Even fun!

As this is his very first and exclusive seminar in Singapore, seats are limited and are filling up fast! Just give him 3 hours of your time and he’ll show how you can make an impact to your life!

Hurry! Register now!! Don’t miss out this opportunity!

Yours Sincerely,

Tony Chai