August 17, 2017

Archives for June 2010

Euro Trade – FXE

Here is the Euro trade I spoke of earlier today: I am still in the QQQQ and IWM position that I established yesterday. I am still confident in a short-term bounce due to several indicators that I follow. If the S&P continues to hold the 1040 area (like it did today) then I think we could see a decent rise until after options expiration. As I stated before, Triple Witching occurs next week and historically the market has performed poorly shortly after. It would be nice to see a move back to an overbought state before that occurs, but I will take a gap fill in IWM and FXE. Kindest, Andy … [Read more...]

Stepping Into the Euro

Yes, I have finally decided to buy a few calls on the FXE (Currencyshares Euro Trust). I will be back later this afternoon with the official trade from my TOS account. FXE is a short-term "very oversold" state so I am hoping to see a quick bounce over the next few days. I would also like to point out that I still have the QQQQ and IWM positions from yesterday. The S&P 500 has managed to hold the 1040 level which is somewhat promising, but we shall see soon enough if this support level holds. One thing is certain, the bulls just can't seem to gather any steam, but as we all know that can change immediately. The market is oversold on a short-term basis and many of the indicators I follow have hit short-term extremes. Stay … [Read more...]

Rock Climbing and Trading

I love rock climbing and I love trading. Check out this video from the TED Foundation. Every trader should watch this video. Particularly the rule that involves fear. Valuable lessons indeed. … [Read more...]

Monday Options Trades

I made the following trades this morning: With the major indices nearing strong support levels while closing in an oversold state I decided to take a few long positions in IWM and QQQQ. Furthermore, IWM has an unclosed gap from Friday's trading. I expect to see a short-term bounce back to $65.87 (low from 6/4). A move below 1040 in the S&P will most likely lead to closing out both trades. As always, I will be back with more in a bit. I am currently, scoping out a few intriguing credit spreads. Stay tuned! … [Read more...]

Pivotal Week Ahead?

I just came across a wonderful chart by Serge Farra over at ETF Corner. I agree that the market is nearing a pivotal juncture. As I have stated over the past few weeks, I think the S&P 500 will remain range-bound throughout most of the summer between 1040 and 1140-1170.  Currently, the broad-based index slightly above the 1040 resistance at 1059 (current price of /ES - futures). Last week I wrote about the month of June's seasonal tendencies. June is also a Triple Witching month. Four times a year stock options, index options and index futures all expire at the same time. The performance of the overall market immediately following June’s Triple Witching has been absolutely horrible in years past. The week after has seen the Dow down … [Read more...]

Another Good Week for “My Options Portfolio”

Obviously I am pleased with the win ratio (93.75%) since I initiated My Options Portfolio, but I am a realist. I realize there is no holy grail in trading. One thing I do know for certain is that I have found several unique, and concrete, options trading strategies that makes the world of sense to me and I trade them to hopefully make money over the long-term. Furthermore, I realize that the less I trade, the better my strategy will perform over the long run: and the long run is what matters. Hopefully, I can continue my winning ways and extend the gains going forward. Patience is the key ingredient to the success of this strategy and forcing a trade is, in most cases, detrimental to any strategy. My Options Portfolio requires patience … [Read more...]

Trades, Trades, Trades

As I stated in my earlier post I placed a trade in BP yesterday and quickly got out of the position this morning with a decent profit. Soon after exiting the position I decided to buy a few puts in QQQQ. Here are the trades directly from my TOS account. Click the image below to see the trades. You can see all the trades placed since My Options Portfolio was initiated back in early May here. Furthermore, I post all of my trades directly from my TOS account plus I include a copy of my trades each month from my Thinkorswim account. You can verify all of the trades yourself. I refuse to tout a strategy that is not transparent. How can we effectively learn how to trade options or follow a specific strategy if it is not transparent. There … [Read more...]

BP Trade

I made a trade in BP yesterday and quickly got out of it this morning for a decent profit. Admittedly, my environmental karma has taken a hit. I decided to get out of it this morning for a nice profit. I will have the official details (from my TOS account) when I get back to my desk this afternoon. Oh yeah, and I placed a trade in the Q's today - puts. It seems as though the opportunities have been plentiful recently. I typically do not trade this often, but when Mr. Probability is screaming my name I have to respond. Right? Kindest, Andy … [Read more...]

Seasonal Picture – June

Historically, June is the one of the weakest months for the S&P with only an average return of 0.3%. June marks the entry into the “summer doldrums” which consists of the weakest rally among all four seasons. June is also a Triple Witching month. Four times a year stock options, index options and index futures all expire at the same time. The performance of the overall market immediately following June’s Triple Witching has been absolutely horrible in years past. The week after has seen the Dow down 15 out of the last 17 years. Watch to see if the market is overbought going into the week following Triple Witching. If so, this could have the potential for a decent short-term fade to the downside. Seasonality alone is (in almost … [Read more...]

First Trade of June

I just bought a few Jul10 46 Puts on QQQQ. Here is the trade: I will have the performance review in my Options Portfolio for May in the upcoming FREE NEWSLETTER due out this evening. I hope everyone had a wonderful and safe holiday weekend. Kindest, Andy … [Read more...]