CME Group (CME) is a stock that has been very kind to us over the years. At the start of 2012, we were able to position ourselves with some calls into earnings and banked some serious coin. Take a look at the charts below for the call. And this was what we were saying before the stock took off: "CME GOING TO GET LEGS" ; CME GROUP
The $270 calls we purchased at .75 hit $21 at the high. So $75 into $2100. History has a tendency to repeat itself, and we are looking at CME group (CME) for another possible move over the next few days. Why? Isn't the stock up nearly 8% over the last 4 trading sessions and above the 200 & 50 day moving averages? It is, and someone taking a glance at the chart may consider CME Group (CME) to be overbought. But the real question is: Who is buying CME Group (CME)? CME Group (CME) is a favorite among institutional investors. Retail traders are not buying and selling the stock. With a forward split coming to attract attention, and another massive divy coming, we think its the beginning of a bull run on CME Group (CME) shares.
Time will tell, but we think CME Group (CME) will trade above $300 in short order. Take a look at our chart below.
We are positioned with a large quantity of $280 and $290 June calls.