Optioneering Newsletter

May 21, 2017

Mini Dow Futures Weekly

Trading since last month’s low suggests that the pause is over and the
uptrend is resuming. The next targets are 22,500 and 24,000. A decisive
break of support at this week’s low could result in a pause or a pullback.

The first profit opportunity we will review 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 quadrupled in price from last year’s low to
last month’s high. That’s a very strong bull trend!
 WIX Daily

The daily chart gives a more compressed picture of the big bull move since
last year’s low. The pullback to the Mid-Line of the Keltner Channel gives us
a buying opportunity.

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, and January 2018.
 Buy to Open WIX July 21st expiration 60-strike Call
Sell to Open WIX July 21st expiration 70-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 44.9% or $310. If WIX
is down -7.5% when the options expire, the spread will make 21.8% or $150.

The next profit opportunity we will consider is in BPMC, or Blueprint Medicines

Corporation. Blueprint Medicines Corporation is a biopharmaceutical company
that develops drugs of small molecule kinase inhibitors that target genomic
drivers in various cancers and rare genetic diseases.
 BPMC Monthly

The monthly chart shows that BPMC has been in a strong bull trend since last
May.
 BPMC Daily

The daily chart for BPMC clearly depicts a strong bull trend. The pullback to
the Lower Keltner Channel Line and to the breakout point gives us a new buy
setup.

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

Traders who want a more leveraged approach could consider buying BPMC
calls. BPMC has options expiring in June, July, October, and January 2018.
 Buy to Open BPMC July 21st expiration 30-strike Call
Sell to Open BPMC July 21st expiration 40-strike Call

We can see from the Call Option Spread Analysis Calculator that if the BPMC
stock price is up by 2.5% or more when the options expire, the spread will
make a 55% or $355 profit. If BPMC stock price at expiration is exactly the
same as it is now, the spread will make a 49% or $316 profit. If BPMC is down
-2.5% when the options expire, the profit will be 33.6% or $217. If BPMC
declines by -5%, when the options expire, the spread will make an 18.3% or
$118 profit. If BPMC is down -7.5% when the options expire, the spread will
show a profit of 2.9% or $19.

The next profit opportunity we will review this week is in PEN, or Penumbra,
Inc. Penumbra, Inc. is a global interventional therapies company that designs,
develops, manufactures and markets innovative medical devices.
 PEN Monthly

The monthly chart shows that the trend in PEN has been up since the stock
started trading in 2015.
 PEN Daily

The trend on the daily chart for PEN is clearly up. The pullback to the Lower
Keltner Channel Line gives us a new buying opportunity.

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

Traders who want a more leveraged approach could consider buying PEN
calls. PEN has options expiring in June, July, October, and January 2018.
 Buy to Open PEN July 21st expiration 65-strike Call
Sell to Open PEN July 21st expiration 80-strike Call

We can see from the Call Option Spread Analysis Calculator that if the PEN
stock price stays where it is or increases in price when the options expire, the
spread will make a 28.2%, or $330 profit. If PEN is down -2.5% when the
options expire, the profit will be 26.1% or $306. If PEN declines by -5% when
the options expire, the spread will make an 8.6% or $101 profit. If PEN is down
-7.5% when the options expire, the spread will lose -8.8% or -$104.

The last profit opportunity we will review this week is in AGX, or Argan, Inc.
Argan is a publicly traded holding company that is focused on companies
that provide products and services to growth industries. Argan seeks
companies that can benefit from its ability to enhance their growth, either
internally or through strategic acquisitions. Argan’s current portfolio of wholly
owned subsidiaries includes Gemma Power Systems, LLC and affiliates,
Atlantic Projects Company Limited, Southern Maryland Cable, Inc. and The
Roberts Company.
 AGX Monthly

The monthly chart shows that AGX is in a strong bull trend. The next upside
target is above the January high of 76.70.
 AGX Daily

The daily chart for AGX also depicts a strong bull trend. Trading since the
January high appears to be a normal pause or pullback. A further advance is
expected.

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

Traders who want to employ a more leveraged approach can buy AGX calls.
AGX has options expiring in June, July, October, and January 2018.
 Buy to Open AGX July 21st 55-Strike Call
Sell to Open AGX July 21st 65-Strike Call

We can see from the Call Option Spread Analysis Calculator that if the
AGX stock price declines by -2.5%, stays where it is, or increases at all
when the options expire, the spread will make a 26.6% or $210 profit. If the
AGX stock price declines by -5% when the options expire, the spread will
make an 11.3% or $89 profit. If AGX is down -7.5% when the options
expire, the spread will lose -10% or -$79.

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