On Demand

Options Commentaries

Showing Posts 1 - 15 out of 53 found.

Trading The Jobs Number: Define Your Risk

Trading The Jobs Number: Define Your Risk

When I worked on the trading floor of the CME, the first Friday of the month meant one thing; Unemployment. That was short for the batch of numbers released by the Labor Department each month. Everyone working in the Eurodollar pit would be glued to the boards as the numbers were released at 7:30 AM Central. The data could cause a fast market in either direction, or sometimes both. Big money...

Continue Reading

See Volatility Through the Futures Market

See Volatility Through the Futures Market

The VIX has been quite low for a while, and as such we have noticed the extreme market volatility of early this year has been zapped away.  However, last week saw some volatility start to come back with a big jolt on Thursday and then some follow-through to end the week.  A market under distribution as we have seen of late can bring the volatility back in a big way, and it could be a game...

Continue Reading

Should You Double Down On A Trade?

Should You Double Down On A Trade?

To roll or not to roll, that is the question.  I get this a lot in our room.  Invariably, it is when an expiring position is not working out for us.  “What can we do with our position in XYZ?  Can we cost average in?”  You name it.  A gambler calls it “doubling down”, a trader calls it “cost averaging”.  I don’t care what you call it, it’s the same thing.  There is nothing wrong with...

Continue Reading

Use Moving Averages To Cash In On Stock Profits

Use Moving Averages To Cash In On Stock Profits

In today’s article, I just want to share some other moving averages that I use on all of my swing trade analysis. When I swing trade I focus mostly on the daily and hourly charts. Every now and then I’ll check out a weekly chart just to determine the overall glimpse of the trade and what it’s doing. The averages I use are the 100 and 200 simple moving averages. I’ve heard tales of other...

Continue Reading

Warning! S&P 500 Chart Has Similar Pattern As 2008

Warning! S&P 500 Chart Has Similar Pattern As 2008

We often look at charts to find recognizable and repeatable patterns, hoping to take notice of a previous move that may have a high probability of happening again.  In the universe of technical analysis, there are a plethora of technical patterns with setups for both bullish and bearish plays.  You can find a nice sampling of those below.  But the important takeaway from the analysis is to...

Continue Reading

Is Inflation Coming Back For Real This Time?

Is Inflation Coming Back For Real This Time?

If we were to point to one mystery in our economy it is the lack of inflation.  Let it be known the Fed has been doing everything possible to stoke some inflation fans but it hasn't been working.  We have to go back to Ben Bernanke's reign as Fed chief to find where this effort first started, and even Janet Yellen seems frustrated about the lack of price increases in the economy.  Deflation...

Continue Reading

Buy Crude Oil Dips: Target $50 Barrel

Buy Crude Oil Dips: Target $50 Barrel

June Crude Oil continued its trek higher today (Thursday, April 28) rebounding off its overnight low of 44.94 and making a new high at 46.14. Traders reacted to a plunging US dollar as it broke down through the 94.00 mark and closed near the April lows of 93.62 at 93.725. The Dollar fell as the Japanese Central Bank shocked the market by leaving interest rates alone after implying last week...

Continue Reading

Options Play: Strangle The Euro To Collect Premium

Options Play: Strangle The Euro To Collect Premium

The Euro has been in search of a sweet spot over recent weeks. The Brexit vote lies down the road (June 23rd) a bit, but it is still on everyone’s mind. The ECB left rates alone (as expected) at their most recent meeting and Mario Draghi has spent recent days defending ECB policy. “Our policy is working, but we must be patient. “ Mr. Draghi also hinted that an interest rate hike “would be...

Continue Reading

Why The Australian Dollar Matters Now

Why The Australian Dollar Matters Now

In January and again in April, we showed we showed a potentially bearish path into the middle of 2016 and beyond for Australian stocks – a decline that we believe is linked to lowered expectations for China's economy and trade. Consistent with that view, the Australian Dollar appears ready to make a similar decline during the next year or longer. In the context of a larger decline that began...

Continue Reading

Big Opportunity In Apple Earnings Play

Big Opportunity In Apple Earnings Play

Apple (AAPL) used to be the apple of everyone’s eye.  You could not go wrong.  Just close your eyes, hit buy on your brokerage platform and collect the cash.  That’s not necessarily the case now.  The iWatch is being characterized by some as a total flop, waning iPhone sales have been a drag, new competition, you name it.  How quickly global sentiment has changed.  If you were listening to...

Continue Reading

Trading 101: Profit From A Retest Gap

Trading 101: Profit From A Retest Gap

Hey traders from around the Planet. How are you doing during this present moment of time? I’m here to break down a pretty basic subject. Not too long ago, I wrote How to profit from a gap trade ,which specifically focused on something I call the bearish gap and go trade. In this article, I’m going to teach you how to trade the bearish retest gap. It’s really quite simple and I know you’ll...

Continue Reading

Time To Play 'Defense'

Time To Play 'Defense'

I bet you didn't know one of the best performing groups in 2016 has been the defense names.  From Northrop Grumman, to Boeing to Lockheed Martin, this group has been carrying the industrials this year, and they may not be finished.  After a vicious decline to start the year this group has been the leader since the market bottomed in February.  So far we have the XAR (defense/aerospace ETF)...

Continue Reading

Action Steps for a Perfect Trading Plan

Action Steps for a Perfect Trading Plan

Last week, we began with our first of two part series, ‘8 Step for a Perfect Trading Plan’, to help answer that question of what should be included in every trading plan and how it helps you become a more successful investor and trader. Let’s now delve into the rest of the ingredients including Position Sizing and Risk Management, Trading Systems, Market Analysis and Weekly Review.  ...

Continue Reading

Soybean Prices Surge But Massive Supply Overhang Looms

Soybean Prices Surge But Massive Supply Overhang Looms

It’s a classic call sellers set up. A market with overwhelmingly bearish fundamentals and depressed price levels catches a break. Speculators (nearly always looking for a reason to get long) hear a news story that sounds “less bearish” and jump all over it. Prices break higher. Volatility and open interest surges. The public rushes to buy call options. And then reality sets back in. As a...

Continue Reading

Today's Opening Level In Netflix Is Key

Today's Opening Level In Netflix Is Key

Hey Traders! I hope you day is going quite majestic. I know many of you are going to have opinions, questions, thoughts and facts on NFLX. Here is my analysis after the earnings have come out. Very rarely in trading do the earnings numbers actual matter. I’ve seen many stocks (especially AAPL, TSLA and NFLX) just crush earnings on all levels and I’ve also seen a stock gap up on terrible...

Continue Reading
    1 | 2 | 3 | 4    
Membership is Free. Join Now in less than 5 seconds! Alternatively Join or Sign In here.