Cyber Monday – Hack Attack Affects 200,000 Computers, Markets Oblivious

Nothing seems to matter. 

On Friday a ransomware attack hit 200,000 computers in 150 countries and the source seems to have been files that were stolen from our very own NSA by WikiLeaks.  Now, granted this attack only affects people who haven't updated Microsoft (MSFT) Windows since March and another patch came over the weekend – so the good news is that MSFT seems to be able to keep on top of these things but random cyber-attacks are yet another risk factor the market is now ignoring as we hover around those record highs.

As a trade idea off this madness, I like FEYE, who provide Corporate Cybersecurity Solutions and whose phones should be ringing off the hook this morning as it occurs to many more companies that maybe it is important to have someone make sure their computers aren't attacked by malware.  

FireEye (FEYE) is a pre-revenue company but growing at about 20% and likely 2 more years away from turning a profit but, at $14.79, you can sell the 2019 $12 puts for $2.05 for a net $9.96 entry, an additional 32% discount to the already low price. It's a good way to get your feet wet and watch the stock and ordinary margin on the short puts is only $978 if you sell 10 so you collect $2,000 against $978 in margin and your return on margin is over 200% and all the stock has to do is stay above $12, giving you a $2.79 cushion (19%) on your full gain.

Another big story this morning is oil, which has popped over our 2.5% line at $49 and that has been good for our longs, which gained $8,200 for the day (you're welcome) and we're setting tight stops here as we're up over $5,000 overall making this a very successful trade from Wednesday's Live Trading Webinar.  

Oil is up on news that Russia is agreeing with OPEC to extend production cuts through the first quarter of 2018 and that should all be ratified at the meeting a week from Thursday.  Of course they are asking the US producers to voluntarily cut back and…
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