Optioneering Newsletter

October 8, 2017

Mini Dow Futures Monthly

The Mini Dow futures rallied to another new record high on Thursday. New
record highs are bullish. The next target is 24,000.

The first profit opportunity we will consider this week is in COHR, or

Coherent, Inc. Coherent designs, manufactures and markets laser
systems and components, laser measurement and control products,
optics, and laser accessories, for industrial use and for scientific research.
 COHR Monthly

The monthly chart shows that COHR has been in a strong bull trend since
last year’s low.
 COHR Daily

The daily chart for COHR also depicts a strong bull trend. The pullback from
last month’s record high gives us a buying opportunity.

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

Traders who want a more leveraged approach could consider buying COHR
calls. COHR has options expiring in October, November, February, and May.
 Buy to Open COHR November 17th expiration 215-strike Call
Sell to Open COHR November 17th expiration 230-strike Call

We can see from the Call Option Spread Analysis Calculator that if the COHR
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 40.8% or $435. If
COHR is down -7.5% when the options expire, the spread will make 9.9% or
$106.

The next profit opportunity we will review is in OLED, or Universal Display

Corp. Universal Display Corporation is a developer and manufacturer of
organic light emitting diodes (OLED) technologies and materials as well as
provider of services to the display and lighting industries.
 OLED Monthly

The monthly chart shows that OLED is in a strong bull trend. The uptrend has
been especially strong since last year’s low.
 OLED Daily

The daily chart for OLED has a clear bullish pattern of higher highs and higher
lows. The pullback from last month’s new record high gives us a buying
opportunity.

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

Traders who want a more leveraged approach could consider buying OLED
calls. OLED has options expiring in October, November, December, January,
March, and January 2019.
 Buy to Open OLED November 17th 105-strike Call
Sell to Open OLED November 17th 120-strike Call

We can see from the Call Option Spread Analysis Calculator that if the OLED
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 32.7% or $370. If
OLED is down -7.5% when the options expire, the spread will make a 19.4%
or $219 profit.

The next profit opportunity we will consider this week is in WIX, or WIX.COM
Ltd. Wix.com is a cloud-based web development platform. WIX allows users to
create HTML5 web sites and mobile sites through the use of online drag and
drop tools.
 WIX Monthly

The monthly chart shows that WIX more than quadrupled in price from last
year’s low to this year’s high. That’s a very strong stock!
 WIX Daily

The daily chart shows that the overall trend in WIX has been up since last
year’s low. Recent trading 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 WIX.

Traders who want a more leveraged approach could consider buying WIX
calls. WIX has options expiring in October, November, January, April, January
2019, and January 2020.
 Buy to Open WIX November 17th expiration 55-strike Call
Sell to Open WIX November 17th expiration 65-strike Call

We can see from the Call Option Spread Analysis Calculator that if the WIX
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 32.5% or $245. If WIX
is down -7.5% when the options expire, the spread will make 15.7% or $118.

The last profit opportunity we will review this week is in PTLA, or Portola
Pharmaceuticals, Inc. PTLA develops and commercializes therapies that
improve patient’s lives and advance patient care by changing treatment
paradigms in thrombosis and other hematologic diseases.
 PTLA Monthly

The monthly chart shows that PTLA has been in a very strong bull trend
since last year’s low. A further advance is expected.
 PTLA Daily

The daily chart shows that PTLA quadrupled in price from last year’s low to
this year’s high. That’s a strong bull move! The current pullback gives us a
buying opportunity.

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

Traders who want a more leveraged approach could consider buying PTLA
calls. PTLA has options expiring in October, November, December, January,
March, and January 2019.
 Buy to Open PTLA December 15th expiration 40-strike Call
Sell to Open PTLA December 15th expiration 55-strike Call

We can see from the Call Option Spread Analysis Calculator that if the PTLA
stock price stays the same as it is now or increases in price when the options
expire, the spread will make a 41.5% or $440 profit. If PTLA is down -2.5% at
option expiration, the profit will be 33.5% or $355. If PTLA is down -5% when
the options expire, the spread will make 20.4% or $216. If PTLA is down
-7.5% at expiration, the trade will make 7.3% or $77.

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