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Showing Posts 1 - 15 out of 37 found.

Selling Option Premium: Ideal Chance Next Week, But HURRY UP!

I talk about many different money-making strategies regularly, and among this is selling option premium.  This is one of the best and simplest ways to earn income, it can also allow you to get into a stock position at a lower price.  Next week offers a particularly good chance to get some positions working, as there are only 3 1/2 days of market action (Wed is a half day, Thur markets are...

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Forget The Speed, Watch The Patterns

Forget The Speed, Watch The Patterns

Sometimes, it seems our brains move in slow motion as it relates to market action.  Perhaps it is the computers and High Frequency Traders (HFTs) that are just lapping us.  Maybe our hopes and expectations get in the way of sound judgment and free thinking. Maybe it is the angst we sometimes feel when the market is as volatile as it has been recently. I can't seem to put my finger on the...

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A Snippet Of Classroom Talk About Options

A Snippet Of Classroom Talk About Options

Reward to risk is not the be-all-end-all of risk management.  I talk about this concept all the time in my classroom. Recently, Macy's Department Store (M) was a topic of discussion regarding risk-reward is risk management. A student was looking for an opportunity to take a directional long in M, so we did some live analysis in the classroom.  There are no weekly options available for M, and...

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Buy The February E-Mini S&P 500

Buy The February E-Mini S&P 500

In the last FOMC meeting of the year, the Federal Reserve decided to leave in every observer’s favorite phrase “considerable time.” When the Fed says “considerable time,” it reminds me of being a kid, asking your parents for something and getting the reply, “maybe later.” Maybe later? What does that mean? Is it yes or no and when is later?  The Fedspeak translator 2014 still hasn’t told me...

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I Don’t Have Anything To Say About The Market Today

I Don’t Have Anything To Say About The Market Today

Every work day, I read the news, watch the market, write what I write, and I generally do it with a dispassionate, objective view. Some days, though, my dispassionate view is challenged, but I get past it. Other days, such as yesterday, I read about an action so cold, I cannot put my compassion away; I cannot look the other way. My objectivity goes out the window and I just want to scream....

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Buy The S&P 500 For Profits In 2015

Buy The S&P 500 For Profits In 2015

Recent economic, global and geopolitical events have put traders on edge. A plethora of negative news items have allowed the bulls to box themselves into a corner in the “wall of worry”. The good news is that the S&P 500, the stock market, and US economy are set to surge in 2015. This means that now is a good time to be looking at stocks and getting long the broad market. Worries...

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​Southwest Airlines, A Play With Implied Volatility

​Southwest Airlines, A Play With Implied Volatility

Sometimes I feel like a broken record regarding the US equity market lately.  Take a look at any chart and you think you are looking at the same one you just analyzed.  The stock went up, had a hiccup in mid October, then it's off to the races again.   How do you define a top with a stock that continues to make all-time high after all-time high?  By definition, there are no resistance points...

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Burger King Is Poised To Hit New Highs Soon

Burger King Is Poised To Hit New Highs Soon

In a day when the average stock fell more than 1%, shares of Burger King Worldwide (BKW) rallied more than 6% on 2.5x the average daily volume. The stock gapped higher after RBC Capital upgraded the stock to outperform and raised their price target to $38 from $30. They see EPS upside from the Tim Hortons (THI) merger, international growth, and returning cash to shareholders. While this is...

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Falling Oil Means Money For Many

Falling Oil Means Money For Many

If you have been following the markets the last few weeks, you have noticed the falling price of crude oil. You probably also noticed the debate about the positive or negative economic effects. This is relatively new debate. Historically, lower crude prices have generally meant the U.S. economy was in good shape, and lower prices usually represented some stability in the geo-political...

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A Play on Cheniere Energy

A Play on Cheniere Energy

Cheniere Energy Inc. (NYSE: LNG, $67.05) is a Houston, Texas-based company involved in the development and sale of natural gas resources.  The stock has been excellent for investors thus far in 2014, returning in excess of 55% year to date.  The stock has traded in a 52-week range of $38.42-$85, but has pulled back of it’s September 18 all-time high.   With natural gas coming under similar...

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Microsoft Looks Ready to Step Out

Microsoft Looks Ready to Step Out

Mr. Softy (MSFT) has put in a tremendous performance in 2014.  This is one of the best years since the dot.com days, the stock up nearly 35% YTD.  That’s a stunning amount for a mega cap company, but, more so, the stock has been on a buy signal nearly all year long.  Every dip has been minor and a buy point, and only once did it challenge the 100-day moving average (just recently), but it...

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Buy The February Crude 50-85 Strangle

Buy The February Crude 50-85 Strangle

I hope you were able to survive the chaos that often surrounds holidays and found a bit of time to relax and enjoy Thanksgiving. It does remind us to take the opportunity to think of all the things we should be thankful for.  As we move from one holiday into another season of holidays, the markets have presented us with one more thing to be thankful for. Over the last few weeks, we have seen...

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Overbought Can Mean A Time-Based Correction

Overbought Can Mean A Time-Based Correction

Off the back of a massive earnings beat, Netsuite (N) had "gap and go" price action, running from the low 90's all the way up to 110 in the course of two weeks. When stocks have this kind of move on the back of great earnings, they tend to work off overbought conditions through a time-based correction instead of a price based correction. N has been in a sideways range for about a month,...

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An Option Play On ANF

An Option Play On ANF

Abercrombie & Fitch (ANF, $28.46) hasn’t been stylish for investors in 2014 - shares are off by 13.5% year to date.  The stock is scheduled to report earnings prior to the open of Wednesday’s session, with consensus analyst estimates calling for $0.41 EPS on $916.03 million of revenue.  One year prior, the company posted EPS of $0.45 (a beat of $0.07) on $1.03 billion in revenue.  ANF...

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Finding Entry Into A Directional Trade

Finding Entry Into A Directional Trade

An important thing to remember is that my approach to directional trades is different when going into an earnings release cycle, rather than when outside of the earnings cycle.  Outside of the earnings cycle, other factors trigger my entries.  Those factors could be fundamental in nature, or they might be based on unusual options activity. Most of the time, however, my entry is based on a...

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