Optioneering Newsletter

December 2, 2018

Mini Dow Futures Monthly

Despite the October decline, the trend is still up because the price is above
the moving average and close to closing above the October high and
reaffirming the long-term bull trend. With that in mind, we will review four bull
spreads this week.

The first profit opportunity we will consider this week is in

BOIL. BOIL, or the Ultra DJ-UBS Natural Gas Proshares.
The ProShares Ultra Bloomberg Natural Gas seeks daily
investment results, before fees and expenses, that
correspond to two times (2x) the daily performance of the
Bloomberg Natural Gas Subindex.
 BOIL Monthly

BOIL closed above the monthly moving average line on Friday, the last day
of the month. A close above the moving average line turns the trend to the
upside. This was BOIL’s first monthly close above the moving average line
since April, 2014. At any rate, as we already said, the monthly trend in BOIL
is now up.
 BOIL Daily

The daily chart gives a better picture of last month’s blast off. The recent
pullback gives us an opportunity to enter a bullish position.

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

Traders who want more leverage can buy BOIL calls. BOIL has options
expiring in December, January, February, March, June, and January 2020.
 Buy to Open BOIL January 18th expiration 45-strike Call
Sell to Open BOIL January 18th expiration 58-strike Call

We can see from the Call Option Spread Analysis Calculator that if the BOIL
ETF price declines by -2.5%, stays where it is, or increases in price when the
options expire, the spread will make a 116.7% or $700 profit. If BOIL is down
-5% when the options expire, the profit will be 97.5% or $585. If BOIL is
down -7.5% when the options expire, the spread will make 72.5% or $435.

The next profit opportunity we will consider this week is in

ARGX, or Argenx SE Ads. Argenx SE is a biopharmaceutical
company. It focuses on developing antibody-based therapies
for the treatment of autoimmune diseases and cancer.
 ARGX Monthly

We’re looking at a weekly chart for ARGX because ARGX just started trading
in May of last year. The weekly chart is clearly bullish. Recent trading
suggests that the pullback from the June high is over and the uptrend is
resuming.
 ARGX Daily

The daily chart is consistent with the weekly chart. The daily chart shows a a
very strong bull move the began last December and peaked at this year’s
high. The daily chart also suggests that the pullback from this year’s high is
over and the uptrend is resuming.

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

Traders who want to employ a more leveraged approach can buy ARGX
calls. ARGX has options expiring in December, January, February, and May.
 Buy to Open ARGX January 18th expiration 80-strike Call
Sell to Open ARGX January 18th expiration 90-strike Call

We can see from the Call Option Spread Analysis Calculator if the ARGX
stock price declines by -5%, stays where it is, or increases in price when the
options expire, the spread will make a 40.8% or $290 profit. If the ARGX
stock price is down -7.5% when the options expire, there will be a
34% or $241 profit.

The next profit opportunity we will review this week is in TWLO, or Twilio Inc.
provides Cloud Communications Platforms. TWLO enables developers to
build, scale and operate real-time communications within software
applications. Its Programmable Communications Cloud software enables
developers to embed voice, messaging, video and authentication capabilities.
 TWLO Monthly

After pulling back along with so many stocks in October, TWLO took off and
hit new all-time highs in November.
 TWLO Daily

The daily chart for TWLO looks just as bullish as the monthly chart. TWLO
appears to be poised for another run to a new all-time high.

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

Traders who want to employ a more leveraged approach can buy TWLO
Calls. TWLO has options expiring every week until January 18th. After that,
TWLO has options expiring in February, April July, January 2020, and
January 2021.
 Buy to Open TWLO January 18th expiration 80-strike Call
Sell to Open TWLO January 18th expiration 90-strike Call

We can see from the Call Option Spread Analysis Calculator if the TWLO
stock price declines by -2.5%, stays where it is, or increases in price when
the options expire, the spread will make a 44.9% or $310 profit. If TWLO is
down -5% when the options expire, the profit will be 41.5% or $287. If the
TWLO stock price is down -7.5% when the options expire, the spread will
make a 7.3% or $50 profit.

The last profit opportunity we will review this week is in TSLA, or Tesla
Motors. Tesla is an automotive and energy storage company that designs,
manufactures, and sells electric cars, electric vehicle powertrain components,
and battery products.
 TSLA Monthly

The monthly chart shows that TSLA has been trading in a range for almost a
year and a half. During that time, TSLA posted three nearly even tops. A
breakthrough a flat top like that often results in a significant advance.
 TSLA Daily

We put a line on the daily chart for TSLA so you can see the flat top we
referred to on the monthly. As we said, a break through that top could result
in a significant advance.

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

Traders who want more leverage can buy TSLA calls. TSLA has options
expiring every week until January 18th. After that, TSLA has options expiring
in February, March, June, August, January 2020, June 2020, and January
2021.
 Buy to Open TSLA January 18th 310-Strike Call
Sell to Open TSLA January 18th 330-Strike Call

We can see from the Call Option Spread Analysis Calculator that if the TSLA
stock price declines by -5%, stays the same as it is now, or increases in price
when the options expire, the spread will make a 38.4%, or $555 profit. If
TSLA is down -7.5% when the options expire, the spread will lose -1.8%, or
-$26.

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