Keeping it short tonight. I will be back with the HPMR indicator tomorrow. I placed a trade in the new Theta Driver options strategy. Here is the trade: (click to enlarge) I will be back later tomorrow with details. Summary SPY remains range-bound! Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. It appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this … [Read more...]
Archives for July 2011
What do you think about the markets here? A question I often receive from subscribers or the financial media. My response, I don’t care. Okay, that my be a bit harsh and overstated, but for the most part I really don't care about the daily news that flows in and out of the market. I am an options trader. I trade strategies based off probabilities. Nothing new here. I just want to teach people how to trade effectively and profit my using my options strategies. Because knowing what is going on in the news and making money are two separate beings. For successful investors its about your strategy, your logic, your process, it doesn't matter what you think the market is going to tomorrow. This is a concept that is often difficult for the newbie … [Read more...]
We have had a few weeks of sideways trading and as a result short-term extremes have been nonexistent. Yes, there have been a few potential short-term set-ups, but they never truly entered into a short-term extreme. GLD was certainly close, but the trade never came to fruition. As we all know the strategy enters periods of stagnant trading. Again, this is a long-term approach to options trading and is to be expected. Boring, maybe to the aggressive crowd out there. But, I am more interested in the profitable trades. Trades that I am confident in due to the short-term extremes that have entered the stock market - high-probability trades. I think the win ratio and returns of my options strategy speak for themselves. Ultimately, this … [Read more...]
*Over the short-term Gold (GLD) has pushed into 'very overbought' extreme which could trigger a trade over the next few trading days. If gold happens to move higher and thereby push further into 'overbought' territory I will most likely enter a trade over the next few days. As always, subscribers, be on the lookout for a real-time trade alert and tweet of the trade. New Credit Spread Options Strategy – Beta The market moved lower again today and the Russell 2000 (IWM) is now 4.3 percent below the 86 strike. I sold a vertical spread with 53 days left until August expiration for a $.34 credit and now the spread is worth approximately $.45. The two week rally that occurred during the latter part of June/beginning of July sent the price … [Read more...]
I am going to keep it rather short tonight. The market moved lower today, but the bears had a rough time pushing the major benchmarks decisively lower. We could still see a push lower, but over the short-term the direction leans towards the bulls. However, there are a few international ETF's that have pushed into an oversold state and a few could be potential plays going forward. Currently EWZ, EWP and TBT are on my radar for short-term plays and as always I will inform all of you (my paid subscribers) in real-time if and when a trade occurs. New Credit Spread Options Strategy – Beta The two week push by the bulls has pushed the value of my credit spread to approximately $.51 which is $.17 higher than my original price. For all … [Read more...]
Patient, Methodical Approach Leads to Further Gains in the High-Probability, Options Strategy. Portfolio Up 47.9% Since Inception.
On Wednesday I entered into some IWM puts. Of course, the market raced higher and my trade was quickly underwater, but I knew that the probability of a short-term decline was extremely high so I placed another trade and the following day the market declined. I stuck with the trade over the weekend because the short-term overbought reading had not worked itself out so the probability of a move lower remained high. Today, the market pushed significantly lower at the open so I was able to get out of my combined position for a nice profit that pushed my the High-Probability, Mean-Reversion options strategy to new high of 47.9% since its inception back in November. New Credit Spread Options Strategy – Beta The surge last week pushed the … [Read more...]