July 21, 2017

Archives for January 2014

Options Premium Expires as January Expiration Ends

Friday is the end to another successful expiration cycle. Unless the major market indices  rally 2% tomorrow our bear call spreads should be in good shape. Typically, I would've taken them off, locked in a profit and sold more options premium, but the positions were never in jeopardy of taking a loss. As a result, I will allow them to expire worthless reaping the max profit. Quick Note: Remember, paying commissions should NEVER be a reason to hold on to a trade, especially if there is little to no premium left in the trade. Why risk making an additional $0.05 when you could potentially lose $1.95, it doesn't make sense. For this reason brokers like Thinkorswim offer there clients free commissions for anything less than  a $0.05. It makes … [Read more...]

High-Probability, Mean Reversion Indicator 1-15-14

High-Probability, Mean-Reversion Indicator for January 15th, 2014 … [Read more...]

High-Probability, Mean-Reversion Indicator

High-Probability, Mean-Reversion Indicator for January 7th, 2014 … [Read more...]

A Few Indicators I’m Watching at the Onset of 2014

Happy New Year! I'm looking forward to starting 2014 just how we closed out the last half of 2013. The slow and steady, logical strategies continue to work in any market. we just need to keep a close on volatility levels and adjust accordingly. Volatility levels, overbought/oversold extremes and position-sizing will continue to lead the strategies to continued success. It's a simple, logical approach. Anyway... Today the market moved decisively lower. For those of us who currently have bear call spread positions  the move was more than welcomed...and there's a decent opportunity more downside is to come. According to acclaimed sentiment analyst, Jason Goepfert, we are witnessing some of the most extremes in market history. In … [Read more...]