Optioneering Newsletter

October 7, 2018

Mini Dow Futures Monthly

We trade with the trend and the long-term trend is up. The current target
is 27,500.

The first profit opportunity we will review this week is in OILU. OILU is the
UltraPro 3x Crude Oil ETF. The ProShares UltraPro 3x Crude Oil ETF seeks
daily investment results, before fees and expenses, that correspond to three
times (3x) the daily performance of the Bloomberg WTI Crude Oil Subindex.
 OILU Weekly

The weekly chart shows that the trend in OILU has been bullish for over a
year. A further advance is expected.
 OILU Daily

The daily chart also shows that OILU is in an uptrend. This week’s pullback
gives us a buying opportunity.

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

Traders who want more leverage can buy OILU calls. OILU has options
expiring in October, November, December, and March.
 Buy to Open OILU November 16th expiration 55-strike Call
Sell to Open OILU November 16th expiration 65-strike Call

We can see from the Call Option Spread Analysis Calculator that if the OILU
ETF price declines by -2.5%, stays where it is, or increases in price when the
options expire, the spread will make a 52.7%, or $345 profit. If OILU is down
-5% when the options expire, the profit will be 43.8% or $287. If OILU is
down -7.5% when the options expire, the spread will make a 17.9% or $117
profit.

The first profit opportunity we will review this week is in CRC, or California
Resources Corporation. California Resources Corporation is engaged in
exploration and production of oil and gas. CRC produces, gathers, processes
and markets crude oil, natural gas, natural gas liquids and electricity primarily
in the State of California.
 CRC Weekly

The weekly chart shows that CRC has been in an overall bull trend since the
summer of 2017.
 CRC Daily

The daily chart also shows that the overall trend in CRC is bullish. This
week’s pullback gives us a buying opportunity.

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

Traders who want to employ a more leveraged approach can buy CRC calls.
CRC has options expiring in October, November, December, January,
February, May, January 2020, and January 2021.
 Buy to Open CRC November 16th expiration 30-strike Call
Sell to Open CRC November 16th expiration 45-strike Call

We can see from the Call Option Spread Analysis Calculator if the CRC stock
price declines by -2.5%, stays where it is, or increases in price when the
options expire, the spread will make at least a 39.4% or $424 profit. If CRC is
down -5% when the options expire, the profit will be 28.7% or $308. If the
CRC stock price is down -7.5% when the options expire, there will be a
17.9% or $193 profit.

The next profit opportunity we will review this week is in HUBS, or HubSpot,
Inc. HubSpot, Inc. is an inbound marketing software platform that helps
companies to attract visitors to their websites, convert visitors into leads,
and close leads into customers.
 HUBS Monthly

The monthly chart shows that HUBS has been in a strong bull trend since the
2016 low.
 HUBS Daily

The daily chart for HUBS has a nice bullish pattern of higher highs and higher
lows. Like the first two stocks we looked at today, the recent pullback in
HUBS gives us a buying opportunity.

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

Traders who want to employ a more leveraged approach can buy HUBS
calls. HUBS has options expiring in October, November, December, March,
and December.
 Buy to Open HUBS November 16th expiration 125-strike Call
Sell to Open HUBS November 16th expiration 140-strike Call

We can see from the Call Option Spread Analysis Calculator if the HUBS
stock price declines by -2.5%, stays where it is, or increases in price when
the options expire, the spread will make a 38.2% or $415 profit. If HUBS is
down -5% when the options expire, the profit will be 24.8% or $269. If the
HUBS stock price is down -7.5% when the options expire, the spread will
lose -8.8% or -$96.

The last profit opportunity we will review this week is in UDOW. UDOW is the
ProShares UltraPro Dow 30. UDOW is a leveraged ETF that seeks daily
investment results corresponding to three times (3x) the daily performance of
the Dow Jones Industrial Average.
 UDOW Monthly

The monthly chart shows that the trend in UDOW is up. The UDOW ETF
price is very close to the record high it made in January.
 UDOW Daily

The bulls took control after a deep pullback from the January high. UDOW
has been in a pretty steady uptrend since July. Like the other stocks we
looked at today, this week’s pullback gives us a buying opportunity.

UDOW is a leveraged ETF. While leveraged ETFs contain more risk, they
usually possess higher premiums as a result. We suggest taking advantage
of the high premiums offered by initiating option debit spreads.

Traders who want a more leveraged approach could buy UDOW calls.
UDOW has options expiring in October, November, December, March,
January 2020, and January 2021.
 Buy to Open UDOW December 21st 92-Strike Call
Sell to Open UDOW December 21st 104-Strike Call

We can see from the Call Option Spread Analysis Calculator that if the
UDOW ETF price declines by -2.5%, stays the same as it is now, or
increases in price when the options expire, the spread will make a 34.8%, or
$310 profit. If UDOW is down -5% when the options expire, the spread will
show a profit of 30%, or $267. If UDOW is down -7.5% when the options
expire, the spread will lose -0.6% or -$6.

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