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

Banking IBB & XHB Profits Early

Options trading profit: In tonight’s video update, we’re going to go over all of the trades that we made today on Thursday, February 18th. So we had two closing orders today, just automatic closes that we put in, and then a new order towards the end of the day in JDX. I want to go over…

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2 Easy to Follow Short Option Trade Examples

Option trade: In tonight’s video, we’re going to go over the two new earnings trades that we had today in GPS and WSM. Just a heads up, now that we’re past the bulk of earning season, we don’t send out any more of the earnings blotch just because we’re not going to be doing a lot…

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How to Short Bonds With Options (Live Example)

Shorting bonds: In tonight’s video, we’re going to go over all the trades that we had for Friday, November 6. There was just one, single trade we had today on Friday, and that’s a new opening trade in TLT. Not an earnings trade actually, just a regular bearish trade that we’re making in bonds. The reason…

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Hedging An Inverted Straddle Option Trade

Straddle: In this video update, we’re going to cover all the trades that we made for Thursday, October 22nd. Sorry for the later video, we are just out with family at a local high school volleyball game. It was the championship for the district. My brother-in-law is one of the coaches. They won, which is great.…

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Turning Our AMZN Credit Spread into an Iron Condor

Credit spread: In tonight’s video, we’re gonna go over all the trades that we made for Thursday, October 8th. So we only had two new trades today, two adjustments to current positions as we get closer to expiration. The first adjustment that we made was to our Amazon call credit spread. So we added this additional…

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Remaining Neutral Before The FED Decision

Fed decision: In tonight’s video, we’re going to go over all the trades that we made for September 14th. So today was a pretty active day. We were a lot of new things. I wouldn’t even say it was too active, it was just active closing, and then we got into a couple of new trades.…

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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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