Category Archives: Technical Analysis

Technical analysis is the studying of price and volume changes over time to forecast where stocks might trade in the future. The primary goal of a technical indicator is to identify areas of support/resistance imbalances in the market which could signal either a price continuation or reversal. If a trader can discover where buyers will be heavily present with demand or where sellers will be heavily present with supply, then he can take positions in the market accordingly. However, the backtesting research we’ve performed here at Option Alpha concludes that 95% of technical indicators have neither predictability nor profitability as a trading indicator. Check out our case studies and research below which helps you discover which indicators, and specific settings, work best.

Guide to Technical Analysis

5 New Strangle & Straddle Option Trade Examples

Straddle: In tonight’s video, we’re going to go through all the trades that we made on Thursday, August 20th. Today was. I think a pretty good day. I mean, we got a lot of things on. New trades that I think were really good. Closed out of a bunch of trades with profits. So really couldn’t…

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FCX Inverted Strangle Adjustment

Inverted strangle: In tonight’s video we’re gonna be going over both the one trade that we made today, Monday August 10th. But also the trades that we made on Friday last week. Because I didn’t have a chance to cover them this weekend. Which was crazy busy, so I wanted to make sure that I covered…

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Quick Profit w: ADBE Earnings Strangle

Earnings trade: In tonight’s video update, want to go over all the trades that we made for Wednesday, June 17th. We had two trades today: one quick close of our strangle earnings trade in Adobe and then another adjustment to our FXE position because FXE kind of had a big move towards the end of the…

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How to Deal With Assigned Put Options

Put options: In tonight’s video, we’re going to go over the two positions, and that we adjusted today in coach. They were our only trades today. Market was actually pretty active. Stocks were down nearly the entire day, which leads to higher implied volatility. We definitely need to see stocks fall a little bit more before…

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How To Place A Short Straddle Option Strategy

Straddle: In tonight’s video, I want to go through all of the trades that we made for Thursday, May 21st. So, we had a pretty good day. I’d say closing out two nice profitable trades and then also entering a new trade in HPQ. So, let’s go over the earnings trade that we did in Hewlett…

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Balancing Our Deltas In Oil With OIH Call Spread

Call spread: Just real quick before we get into the actual trades that we’ve made for today, I wanted to give you guys a heads up. I’m hopefully crossing my fingers. We’re going to launching the podcast before the end of this month. It’s been a huge undertaking. We’ve got five episodes already published. We’ve got…

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Last Week of Options Expiration Adjustments

Options expiration: Tonight, I want to go over all of the trades that we made over the last two days because we didn’t have a chance to get the video update out for Friday of last week to wrap up our trade in BBBY which was an earnings trade, and then also an adjustment in GILD.…

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Earnings Trades in NFLX, IBM, UNP & SNDK

Earnings trade: Today, we’re going to go over all of the trades that we made for Wednesday, January 21st. We had a pretty balanced day, but before we get into that, just as a quick reminder for those of you who haven’t had a chance to listen to show number 16 of our podcast, our…

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Custom Option Strategy Trade On IWM

Option strategy: Thank you for all of the kind emails that I received from everyone. I received a lot of emails from people just saying, “Hey, take here. Get well. Thanks for all you do.” And I appreciate that honestly. Thank you guys so much for underselling. I just lost my voice, had my daughter sick…

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How to Sell Credit Spreads

Selling credit spreads: Today, we’re going to go over all of the trades that we made, both Thursday and Friday this week and round out some of the trades that we had for expiration. Right inside the membership area, you can see the new trading alert page that we have that we’re linking to in this…

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