Optioneering Newsletter

May 20, 2018

Mini Dow Futures Monthly

We trade with the trend and the long-term trend is up. This month’s trading
suggests that the pullback could be over and the uptrend could be
resuming.

The first profit opportunity we will review this week is in NKTR, or Nektar
Therapeutics. NKTR develops new drug candidates by applying its proprietary
PEGylation and advanced polymer conjugate technologies to modify chemical
structure of substances. It is a technology supplier to a number of
pharmaceutical companies including Affymax, Amgen, Merck, Pfizer. NKTR
developed the world's first inhalable non-injectable insulin, Exubera which was
awarded the bronze award by the Wall Street Journal Wall for its technological
breakthrough.

NKTR Monthly

The monthly chart shows that NKTR went straight up from November until
March. This month’s trading suggests that the pullback could be over and the
uptrend could be resuming.
 NKTR Daily

Friday’s trading points to a further advance. If a higher low bottom is in place at

this month’s low, the next leg of the advance could exceed this year’s high.

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

Traders who want more leverage can buy NKTR calls. NKTR has options
expiring every week until June 29th. After that, NKTR has options expiring in
July, August, September, January 2019, and January 2020.
 Buy to Open NKTR June 29th expiration 70-strike Call
Sell to Open NKTR June 29th expiration 82.50-strike Call

We can see from the Call Option Spread Analysis Calculator that if the NKTR
stock price declines by -2.5%, stays where it is, or increases in price when the
options expire, the spread will make a 47.1%, or $400 profit. If NKTR is down
-5% when the options expire, the profit will be 29.8% or $254. If NKTR is down
-7.5% when the options expire, the spread will make a 4.7% or $40 profit.

The next profit opportunity we will review this week is in SOXL, the
Direxion Daily Semiconductor Bull 3X Shares ETF. SOXL seeks to yield
results that correspond to three times the daily performance of the PHLX
(Philadelphia Stock Exchange) Semiconductor Sector Index.
 SOXL Monthly

The monthly chart shows that SOXL hit a new record high in March. New
record highs are bullish.
 SOXL Daily

The daily chart also shows the March record high. Trading since last
month’s low suggests that the pullback could be over and the uptrend
could be resuming.

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

Traders who want a more leveraged approach could consider buying SOXL
calls. SOXL has options expiring in June, July, August, and November.
 Buy to Open SOXL July 20th expiration 130-strike Call
Sell to Open SOXL July 20th expiration 145-strike Call

We can see from the Call Option Spread Analysis Calculator that if the
SOXL ETF price declines by -5%, stays the same as it is now, or increases
in price at option expiration, the spread will show a profit of 46.3% or $475. If
SOXL is down -7.5% when the options expire, the spread will make a 13%
or $133 profit.

The next profit opportunity we will review this week is in WIX, or WIX.COM Ltd.
WIX is a cloud-based web development platform. It 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 the
2016 low to year’s low to this year’s high. That’s a very strong stock!
 WIX Daily

The daily chart shows that WIX us hit a new record high on March 21st. The
overall trend since then has been sideways. Now WIX appears to be ready
for an upside breakout.

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 June, July, October, January 2019, and
January 2020.
 Buy to Open WIX July 20th expiration 75-strike Call
Sell to Open WIX July 20th expiration 85-strike Call

We can see from the Call Option Spread Analysis Calculator that if the WIX
stock price is down -2.5%, stays where it is, or increases in price when the
options expire, the spread will make a 32.5% or $245 profit. If WIX is down
-5% when the options expire, the profit will be 23.3% or $176. If WIX is down
-7.5% when the options expire, the spread will lose -6% or -$46.

The last profit opportunity we will review this week is in TECL. TECL is the
Direxion Daily 3X Bull Technology ETF. TECL seek daily investment results
of 300% of the performance of the Technology Select Sector. The
Technology Select Sector Index is provided by Standard & Poor's and
includes domestic companies from the technology industry.
 TECL Monthly

The monthly chart shows that TECL has been going almost straight up since
the 2016 low. This month’s trading suggests that the quick pullback could be
over and the uptrend could be resuming.
 TECL Daily

The daily chart for TECL depicts a very strong bull trend. Recent trading
suggests that an upside breakout could be imminent.

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

Traders who want to employ a more leveraged approach can buy TECL
calls. TECL has options expiring in June, July, August, October, and
January.
 Buy to Open TECL July 20th expiration 115-strike Call
Sell to Open TECL July 20h expiration 125-strike Call

We can see from the Call Option Spread Analysis Calculator that if the TECL
stock price declines by -2.5%, stays where it is, or increases in price when
the options expire, the spread will show a profit of 40.8% or $290. If TECL is
down -5% when the options expire, the profit will be 29.6% or $210. If TECL
is down -7.5% when the options expire, the spread will lose -16.4% or -$117.

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