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Earnings Play: VMWare Inc. Poised For Big Move

Earnings Play: VMWare Inc. Poised For Big Move

VMWare Inc. (VMW) is scheduled to report earnings after Tuesday’s closing bell.  Headquartered in Palo Alto, CA, this company specializes in cloud and software virtualization services.  VMW Share are down slightly over 2% in 2014, but are off nearly 21% from their April 1 high of $111.83.  The stock has traded in a 52-week range of $76.51-$112.89.Analysts are calling $1.5 billion in revenue...

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E-Mini Trade: Get Ready For Another Round Of Volatility

E-Mini Trade: Get Ready For Another Round Of Volatility

If you chose to read this commentary today, I have a feeling you are a survivor of the events of the last few days.  Your portfolio may have taken a hit, but you are probably still standing in upright stable position. Congratulations to you. Now get ready for another round of volatility. If you have been paying attention to the markets and the surrounding news I’m guessing you caught some...

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APD: Unusual Options Activity And Charts Signal Bottom

APD: Unusual Options Activity And Charts Signal Bottom

Air Products & Chemicals (APD) is a $27 billion industrial gas supplier headquartered in Allentown, Pennsylvania. They hired Seifi Ghasemi to take on the chairman and CEO role this summer, following more than a decade in the same position at Rockwood Holdings (ROC). In September they announced the company will be reorganizing by geography instead of divisions by products. This could...

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4 Key Trading Lessons From The Beach

4 Key Trading Lessons From The Beach

Winter is approaching so I had to make sure to enjoy one more beach day. Hard to do in Nashville, TN though. That being said, we took a short, eight-hour drive to Panama City to visit my girlfriend’s family and, of course, get some serious beach time in.  You might think it’s a stretch to relate snorkeling to trading. Well, only one way to find out. #1 Gear: When trading, you do have to...

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Earnings Play: Trade Intel From The Long Side

Earnings Play: Trade Intel From The Long Side

Intel Corporation (INTC) is scheduled to report earnings after the closing bell on Tuesday.  Consensus analyst forecast $14.45 billion of revenue with an EPS of $0.65 (last quarter’s EPS beat by nearly 6%, with the stock rallying over 9%).  Market Recap Indeed, shares have been seemingly unstoppable in 2014, having rallied 22% year to date.  The stock has traded in a 52-week range of...

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Volatile Markets Are Tripping Everyone Up

Volatile Markets Are Tripping Everyone Up

It's been quite a week of action.   Monday was a sign that Tuesday could be nasty and indeed it was. Selling was concentrated and every rally in the early going was sold until any buyers just threw in the towel.  The drop had many concerned the prior lows would be breached, after the Russell 2000 already did that.  The options market showed a preponderance of puts being bought, many looking...

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Solar City Earnings Options Play

Solar City Earnings Options Play

I have talked about implied volatility being considered "rich" or "cheap" when compared to historical volatility in the past.  A Little Background Implied volatility is deemed to be rich if it is greater in magnitude than its historical volatility over the same time period.  It is deemed cheap if it is below the historical.  In previous discussions, I have talked about the potential pitfalls...

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Microsoft Has Upside To $50 By The End Of The Year

Microsoft Has Upside To $50 By The End Of The Year

Technical Setup Shares of Microsoft (MSFT) have fallen about $2 in the last two weeks in a fairly orderly manner. This brought the stock back to major support at the 50-day exponential moving average, an area where it has marked bottoms for most of 2014. Despite Microsoft being up about 28% year to date, the uptrend remains intact and will at a minimum take the stock back to the September...

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A Stock In The Christmas Stocking

A Stock In The Christmas Stocking

I had a friend, mentor and real life trader message me the idea for this write-up. Hey, no reason to take the credit for this amazingness, so thank you, Gene and Roxanne.What’s another reason to be an active trader? What about simple generosity? Christmas is coming right around the corner and soon people will begin scurrying for presents. What if you could avoid the shopping malls and...

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Apple Options: Expect Volatility Expansion Ahead

Apple Options: Expect Volatility Expansion Ahead

The beauty of options trading is that you can have a position on volatility without caring about the direction.Apple Inc. (AAPL) has a price range that has been compressing for the past few months and is nearing the apex of a triangle. When volatility compression persists for this long, expecting volatility expansion is a reasonable bet.The problem is, which way? It will probably be up...

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On The One Hand …

Today is a two-handed day, but before we deal with that, let me just say that the market pattern that has developed over this awesome bull run of the last few years is still intact. For the past two and three quarter years, #BTFD has been the name of the game. And in the last 18 months, every single dip has simply been another opportunity to put cash to work. Yup, on the one hand, investors...

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Using Stops In Your Options Trading: Nuts And Bolts

Using Stops In Your Options Trading: Nuts And Bolts

Most people know what stop orders are.  But, many don't know that you can use stop orders with options and option spreads.  There are some very important factors to take into account here though especially with option spreads.  How It Works The issue here is that most option platforms calculate a "theoretical value" for an option spread.  Using the bid/ask spreads for each leg of the spread,...

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No Wonder Volatility Is Rising

No Wonder Volatility Is Rising

My goodness, how much higher can the wall of worry be?   There are so many uncertainties out there:  Ebola virus, Middle East conflict, ISIS terrorist threats, Russia/Ukraine, a potential global slowdown, Europe trying to re-ignite their economy, Hong Kong protests, weak Germany (lynchpin of Europe) and major turmoil in Brazil. Whew!  Anything else?  Oh yeah —a strong dollar that has clipped...

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Coca-Cola Has Been Unfazed By The Recent Market Weakness

Coca-Cola Has Been Unfazed By The Recent Market Weakness

Shares of Coca-Cola (KO) are up 5.82% year to date and now starting to break out above the three month resistance level at $42.25. This breakout above the ascending triangle sets up the market  for a minimum measured move to $45.75 in the coming months ($42.25-$38.75=$3.50+$42.25=$45.75). This move is also significant since it is happening on increasing volume over the last two trading days...

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Supply Side Dominates In Corn

Supply Side Dominates In Corn

There were two key reports the first two days of this week.  Monday’s crop condition report and Tuesday’s U.S. Grain Stocks quarterly report.  The News Let’s cover the September stocks and small grains summary first. The report was viewed as mixed, but in the grand scheme of things not all that eventful. Sep 1 corn stocks were pegged at 1,236 million bushels, 55 million above expectations....

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