These are the results from trades suggested on our "Current Plays" list.

Note: they are suggested entry and exit points! disclaimer   Profits Up!!


Lotto Plays  Archive Plays


LAST UPDATE: 8/23/12



Priceline.com  PCLN


Play Recommendations:

(Naked Puts)

Lotto Weekly Options:


Calls: 580 (closed)


Sep Options:


Sep 570 (Closed)

Naked Put


Additional Commentary


Sold (open)

Bought (closed)




8/23/12 - I closed out my trade to free up capital. I am looking at $600 as the next battle ground area of trading.





Profits Up!

The donFranko



8/20/12 - My Naked puts are chipping away at the premium and make me some profits!



Profits Up!

The donFranko



8/16/12 - I sold the $570 naked puts and collected $1,225 in rent.



The action on the 580 calls is turning a very nice profit!


Profits Up!

The donFranko




8/15/12 - Cap'n Kirk is back!! Did he bring the dilithium crystals to get the PCLN profit engines back online?

It's poetic justice for the beloved icon/celeb that pretty much built Priceline's image. Go figure why management decided to lock Phasers on the negotiator (Shatner) and vaporize him from their commercials...not logical.

Looking over the stocks performance from that decision, and you can say that good ol' Bills departure shat-tered the stocks price...lol

Ok, lets take a serious look at the charts for trading clues:

The daily chart shows a solid stop of the selling at $565. That being said, any break below this would be very bearish; and for the next 1-2 quarters, any upside will most likely be slow and steady. This is not necessarily good for options traders because the implied volatility will make it much harder to gain profits on longer term options. Therefore, we have to look for pockets of sharp movements and trade weekly options.

For example: If you were looking to buy out to the next earnings quarter (11/5/12), you would be looking at the November expiration; however, there are no options currently offered in November, so you have to buy out to Jan2013. Assuming PCLN does make it to my projected price target of $678, you would be looking at the 670 strike.

As you can see, these options will cost you $23.70 per share and you are currently $75 out of the money. In addition to this, in order for these options to expire with a profit, PCLN would have to be trading over $673.00 per share on expiration day. Will it get there? It certainly could if the next quarter is a blow out, but it's a very high risk bet at this time. So, if you want to take a shot that the Negotiator will spark a comeback in share price, I would recommend you get the Jan 650 or lower strike. Anything higher and you are negotiating with the bus that took Cap'n Kirk down a few months ago.

I am going to do a Naked Put play here and take that money to buy weekly calls and one monthly put. (I prefer to get paid to take a risk trade on a strong stock that I would not mind owning)






Weekly trade:

Because this stock has a lot of volatility, I would play any weekly options close to the money to assure you have the best chance to be ITM and guaranteed a profit/fill should it move in our direction. I will be looking to enter this trade tomorrow before the market closes. This particular trade has a very high chance of failure so be cautious or just wait for another trade to come along.

REMEMBER: I prefer to do these high risk Lotto Trades during earnings season and that time is pretty much over until next quarter.


Profits Up!

The donFranko