Buy Mylan Calls, United Rental Puts

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tdp2664 InvestorPlace Market Outlook Our indicators are giving bullish readings for options trading investors, an upgrade from last week’s bullish to neutral. The bullishness is confirmed by our internal indicators, all of which are giving bullish readings. And volatility indexes continue to plunge toward levels not seen since 2007. Recommended Fast Options Trade: Mylan (NASDAQ: MYL) MYL has rallied sharply over the past month. Along the way it cleared resistance at $24 and should continue moving higher if stocks continue to rally. Here is the best way to play more strength in Mylan … Buy the MYL Jun 25 Call up to $1 ($100 per contract). After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $26.50. That should give you an option price of about $2.10, for a 110% profit. Close this position and cut losses if the stock closes below $23.80, when the option price should be about 70 cents. The stock is currently trading at $24.66. The computer-simulated probability of this option hitting its target price is 22%. Find more option analysis and trading ideas at Options Trading Strategies . Recommended Fast Options Trade: United Rentals (NYSE: URI) URI has fallen below its 50-day moving average. It snapped back on Thursday but looks like it wants to head lower. Here is the best way to play more weakness in United Rentals … Buy the URI Jun 28 Put up to $1.30 ($130 per contract). After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $26.50. That should give you an option price of about $2.80, for a 115% profit. Close this position and cut losses if the stock closes above $31.30, when the option price should be about 90 cents. The stock is currently trading at $29.72. The computer-simulated probability of this option hitting its target price is 22%. ** All of our short-term recommendations can be taken for up to three days after they are recommended. Make sure the stock and option prices are close to where they were when we made the recommendation. If after three days you still have not gotten the position filled, cancel the order and wait for our new recommendations, as the profit probabilities may no longer be valid. Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.