Optioneering Newsletter

April 9, 2017

Mini Dow Futures Monthly

The trend is up. This month’s little pullback is expected to yield to a further
advance. The next target is 22,500.

The first profit opportunity we will consider this week is in INCY, or Incyte
Corporation. Incyte is a biopharmaceutical company that’s focused on the
discovery, development and commercialization of therapeutics to treat medical
needs, primarily in oncology.
 INCY Monthly

The monthly chart shows that INCY is in a strong bull trend.

The daily chart for INCY has a clear pattern of higher highs and higher lows.
Every pause or pullback has led to a further advance. We expect the current
pullback to do the same.

We are going to review a call debit spread for INCY.

Traders who want to employ a more leveraged approach can buy INCY calls.
INCY has options expiring in April, May, June, September, January 2018, and
January 2019.
 Buy to Open INCY May 19th expiration 120-Strike Call
Sell to Open INCY May 19th expiration 130-Strike Call

We can see from the Call Option Spread Analysis Calculator that if the INCY
stock price declines by -5%, stays the same as it is now, or increases in price
when the options expire, the spread will show a profit of 25.8% or $205. If
INCY is down -7.5% when the options expire, the spread will make 20.8% or
$165.

The next profit opportunity we will consider is in UPRO. UPRO is the

The monthly chart shows that UPRO is in a strong bull trend.

The daily chart also shows that UPRO is in a strong bull trend. The current
pause gives us a new buying opportunity.

UPRO is a leveraged ETF. While leveraged ETFs contain more risk, they
usually possess higher premiums as a result. We suggest taking advantage of
the high premiums offered by initiating option debit spreads.

Traders who want a more leveraged approach could consider buying UPRO
calls. UPRO has options expiring weekly until May 26th. After that, UPRO has
options expiring in June, September, and January 2018.
 Buy to Open UPRO June 16th expiration 78-strike Call
Sell to Open UPRO June 16th expiration 90-strike Call

We can see from the Call Option Spread Analysis Calculator that if the UPRO
ETF price declines by -5%, stays where it is, or increases in price when the
options expire, the spread will make a 31.9% or $290 profit. If the UPRO ETF
price is down -7.5% when the options expire, the spread will make 11.9% or
$108.

The next profit opportunity we will review this week is in SGEN, or Seattle
Genetics. Seattle Genetics is a biotechnology company focused on
developing and commercializing innovative, empowered monoclonal
antibody-based therapies for the treatment of cancer.
 SGEN Monthly

The monthly chart shows that the overall trend in SGEN has been up since
2010. The next target is above last year’s high.
 SGEN Daily

The daily chart shows that the trend is up. As we said above, the next target
is above last year’s high.

We are going to review a Call Debit Spread for SGEN.

Traders who want a more leveraged approach could consider buying SGEN
calls. SGEN has options expiring in April, May, June, September, and
December.
 Buy to Open SGEN May 19th expiration 50-strike Call
Sell to Open SGEN May 19th expiration 60-strike Call

We can see from the Call Option Spread Analysis Calculator that if the SGEN
stock price declines by -5%, stays the same as it is now, or increases in price
when the options expire, the spread will show a profit of 25% or $200. If
SGEN is down -7.5% when the options expire, the spread will make 14.5% or
$116.

The last profit opportunity we will consider this week is in FAS, the Direxion
Daily Bull 3X Shares ETF. FAS strives to achieve daily results that are 300%
of the performance of the Russell 1000 Financial Services Index for the day.
 FAS Monthly

The monthly chart shows that the trend is up. The next upside target is above
last month’s high.
 FAS Daily

The daily chart shows that the trend is up. The pullback to the Lower Keltner
Channel gives us a new buying opportunity.

We are going to review a Call Option Debit Spread for FAS.

Traders who want a more leveraged approach could consider buying FAS
calls. FAS has options expiring weekly until May 26th. After that, there are
options expiring in June, July, October, January 2018, and January 2019.
 Buy to Open FAS June 16th expiration 32-strike Call
Sell to Open FAS June 16th expiration 42-strike Call

We can see from the Call Option Spread Analysis Calculator that if the FAS
ETF price declines by -2.5%, stays the same as it is now, or increases in
price when the options expire, the spread will make a 25%, or $200 profit. If
FAS is down -5% when the options expire, the spread will show a profit of
18.3%, or $147. If FAS is down -7.5% when the options expire, the spread
will make 4.7% or $38.

EARNINGS SEASON: There are four “Earnings Seasons” a year. The seasons begin in
January, April, July, and October and they each last about two months. The earnings
reports can have an impact on the stock price. We don’t know if the impact is going to
be positive or negative (or nothing at all). It’s up to you to decide if you want to be in a
trade when the earnings report is announced. Here’s a link for a page that can help you
keep track of the report dates:

https://www.earningswhispers.com/calendar

Note: Profit performance displayed in this newsletter does not include transaction
costs.
 This newsletter includes some trading ideas following Chuck Hughes’ trading
strategies along with educational information. For a complete listing of Chuck’s
exact trades, including specific entries and exits and real time Portfolio tracking,
please call Brad at 1- 866-661-5664 or 310-647-5664