Just one look at a chart of the VIX and you would likely say that it’s ready for another rally higher. Right now investors are complacent and too greedy. What this really means for us option traders is that premiums will start to rise for all options as the market become more volatile. Of course ...…
For now, here’s a chart of the DOW to think about. Notice the volume at the bottom which has steadily declined for the last month or so signaling clear bearish divergence. Following a similar pattern to the previous day’s session, stocks finally appeared to be headed for a correction throughout the morning, but the major indices ...…
Exhaustion is finally starting to weigh on the market’s July rally. Investors are absorbing the June durable goods order, a surprising oil inventory report, big news on a Microsoft/Yahoo! alliance, and a steady stream of earnings reports. Most sector indices are trading lower with banks, defense, biotech and healthcare the only bright spots still in ...…
First, our DIA Puts suggestion yesterday is already working out wonderfully. The markets continued higher and the puts value decline which is what we wanted as option writers/sellers. After flipping through some more charts yesterday, we found this gem for you all – XLU. As you can see both the RSI and Stochastics are in ...…
When you write/sell options you want to have the odds of success in your favor – as really with anything you trade or invest in. You want to enter option positions where you ability to profit is overwhelming on your side. For option traders, it’s very easy to find these probabilities – the exchanges give ...…
It may have been July 24th for traders but it was an unlucky Friday the 13th for the Nasdaq. The streak of consecutive daily gains was snapped at 12 after Microsoft and Amazon cursed the Nasdaq with a -7 point loss. Despite the -7 point decline in the Nasdaq the markets remained bullish after a ...…
The techs have been the strongest index in the bounce off the March low and recaptured the January high back in May. The S&P 500 and small caps (RUT) followed in June and now the DOW has achieved the same in July. The DOW’s January high was 9088 and yesterday’s high was 9096; 8 points ...…
Considering the markets have been on an all out rampage higher these last two weeks, a lot of the inverse EFT’s have been beaten down pretty badly. Much more so than anything else out there and now are starting to look like great long trades – at least short term here. Of course if you ...…
U.S. stocks fell, sending the Standard & Poor’s 500 Index down from an eight-month high, as energy producers declined on lower oil prices and banks dropped following an increase in bad loans at Wells Fargo & Co. Exxon Mobil Corp. and ConocoPhillips retreated as crude declined for the first time in six days as a ...…
Yesterday, our good friends over there at Goldman Sachs came out and placed a target of 1,060 on the S&P 500. A far stretch but actually pretty realistic over the rest of the year – NOT the next few weeks. Looking at a daily chart of the SPX, 952 was the first major resistance area we needed to ...…
I spent most of my time earlier this morning looking over my hundreds of charts trying to get some feeling of the market after last week’s crazy actions. Of course nothing is as clear as I would like it to be but that’s why most people can’t make money trading right? I mean if it was ...…
To follow on the whole mantra of “big bank earnings” this week we had another strong beat of estimates by GE this morning. While of course this is encouraging, let me tell you why they beat so big. You see when analysts at these big banks last year saw everything collapsing, they cut their estimates dramatically ...…
No problem. When you get home, check your email or the member’s area for any about new trades or adjustments. If there is anything to be done, simply log-in to your broker’s website and put in your order for the next day. We are not day traders. You can get into our trades up to ...…
Actually there are thousands of people using this strategy right now. They are called market makers and hedge fund managers. For example, Warren Buffet uses these exact same strategies in his company. So does Pete Najarian, a panelist on the CNBC show Fast Money along with hundreds of others that trade options for a living. ...…
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