April 24, 2017

Archives for August 2011

Options Strategy Trade

I placed a trade in the High-Probability, Mean-Reversion strategy yesterday. The trade is slightly underwater, which is obviously not the ideal situation, but I remain pleased with the risk/reward of the trade. Three out of the four major indices are currently in a short-term overbought state. The major indices have hit an area of strong overhead resistance. There remains an unclosed gap from Monday and we are entering the weakest performing month of the year.  All of the aforementioned information lead to my opinion that the market is due for a short-term correction. … [Read more...]

Overbought and Ready

I am keeping it short tonight. Hurricane Irene took its toll on my home state. Vermont took quite a hit. The remnants left behind from Irene will last for quite some time. Fortunately, other than a loss of power and being stranded on the mountain on which I live things are quite normal. Anyway... It has been several weeks since our last trade in the High-Probability, Mean-Reversion options strategy and the time has finally come for a trade. If, (and that is a big if) the market opens higher tomorrow I expect to see several signals trigger which will certainly mean that a trade alert is imminent. Subscribers stay tuned. Also, for those of you who are subscribers to the Theta Driver strategy, I plan on making a trade in the next … [Read more...]

High-Probability, Mean-Reversion Indicator

I am going to keep it short tonight. As you can see per the chart below, all of the ETFs I follow in the High-Probability, Mean-Reversion Options Strategy are in a neutral state. However, there are some very good opportunities in the Theta Driver Options Strategy and I plan on making a trade in the strategy tomorrow. I would expect after Big Ben speaks we will see a few short-term extremes enter the market which should give us a few potential set-ups in the HPMR strategy. I am still waiting patiently for a trade. Subscribers stay tuned, particularly those of you who are members of my Theta Driver strategy. Until then, Andy Also, for those of you who live on Facebook. You can access my daily info on the social network as well. … [Read more...]

Credit Spread Opportunities Are Bountiful

The pre-market action has really left the High-Probability, Mean-Reversion strategy with very little opportunities for entry. There are still a few potential trades in the work, but if August goes without a trade then so be it. I am not going to force a trade. Trading to fulfill some type of quota is ridiculous. Trading is not based on the calendar, it is based on opportunities and unfortunately the opportunities have been non-existent. However, as we all know they will be back and be back with vengeance. That just seems to be how the market and moreover, how the High-Probability, Mean-Reversion strategy works. As for the Theta Driver strategy, the trade is currently worth $.09. The underlying of the trade is still well below the short … [Read more...]

Options Trade in the Works?

I am going to keep it short tonight. The market kicked up higher at the open and never turned back. As a result, I did not make a trade in either of the strategies today, but tomorrow is a new day and there are still quite a few viable trades out there as you can see in the High-Probability, Mean-Reversion chart below. So, again, subscribers stay tuned. Market Mumbo Jumbo Daily options report VIX Crush - Fed Stimulus Theta and Time Decay If you haven’t already, don’t forget to sign-up for my Free 30-day trial. Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE. … [Read more...]

Options Trades in the High-Probability, Mean-Reversion Strategies

A trade in the High-Probability, Mean Reversion Strategy looks likely if IWM happens to open flat or open tomorrow. Of course, there are a few other thng is that need to line-up, but the first trade of a slow August seems likely. Subscribers stay tuned! Our latest Theta Driver Options trade looks very good. Last Monday, I placed our first trade for a credit of $0.25 and thanks to some help from the bears (although a flat to slightly higher market would have worked as well, just not so quickly) the credit spread is now worth less than $0.05. With only $0.05 and 25 days left until September expiration I will mostly likely lock in the gain for roughly a 9% gain (including commissions) and place another Theta Driver trade within the next few … [Read more...]

High-Probability, Mean-Reversion Indicator – Advantages of Diversified Options Strategies

Before I get started I want to discuss a lingering frustration of mine - the financial services arena. Yesterday, I posted a WSJ interview with Mark Cuban. Mark had a few very insightful ideas for the public including "buy and hold is a crock of s#$!" and "diversification is for idiots." I definitely agree with Mark's first statement - buy and hold is no longer a viable strategy. However, I think he needs to expand on his last statement. While I do agree that diversification in stocks is well, not useful when applied in the typical manner. Because most over-diversify. And quite honestly, I don't bother investing in stocks. It ties up way too much of my capital and I can create far better statistical advantages using options rather than … [Read more...]

Buy and Hold is A Crock – Cash is a Position – Diversify Through Strategies Not Stocks

The major market averages continue their struggle to push higher over the past three trading days. I still think the market pulls back to close the 9/1/10 gap over the next few months. However, as I always say, all of the noise truly doesn't matter to me, I trade market extremes and volatility. So, it doesn't matter to me where the market goes or how it performs over the long-term. These are uncertainties that have zero statistical advantages. I don't diversify in stocks - I diversify in strategies. This is how to effectively invest your money. This is why I use the High-Probability, Mean-Reversion Strategy and the New Theta Driver strategy. It exposes me to a limited number of days in the market. I am often in cash. I only trade … [Read more...]

New Theta Driver Trade Options Strategy – Potential High-Probability, Mean-Reversion Trade Tomorrow

Theta Driver Options Strategy I placed my first official trade in the Theta Driver options strategy today. For those of you still interested I have a few remaining spots left 12 to be exact, so if you join today I will send you the trade so you can get in for a reasonable, if not better price than what I was able to get into today. I am very excited about my new income options strategy because I have said for years that diversifying your options strategies is the best way to make long-term consistent gains in the options market. High-Probability Options Strategy Finally, a trade is near. My first trade in quite some time could occur over the next few days. As I have always said, patience is the key ingredient to the … [Read more...]

Last Chance – Theta Driver Options Strategy

Okay, as most of you know I abhor doing this - the sales pitch. However, I do want all of you to have a fair chance to get in before the Theta Driver options strategy fills. I will be sending out a mass email later and my guess is that the strategy will be closed to new subscribers after that event. If you are indeed interested in the strategy you can sign-up on the subscribe page here. This will be the last time I mention the sign-up deadline. I intend on placing my first official trade tomorrow, possibly Monday(I have been showing the strategy here for people to follow over the past few months). Okay, so now that the "sales pitch" is over (not much of one I know, but I am a trader not a marketer and I take the grass roots … [Read more...]