850 continues to hold on the S&P
November 18, 2008
850 continues to hold on the S&P or $83.58 as seen on the SPY chart. I continue (for all the reasons given on yesterdays post) to believe we are headed higher over the short to intermediate-term. Yesterday’s post pretty much sums up my current sentiment so I really do not have much to say today.
I am currently watching the Nasdaq 100 (QQQQ) and XLF for potential short-term trades in our two extreme strategies. Subscribers, as always, I will send out a real-time trade alert if and when a trade occurs.
Until then, have a great night!
Andy
Overbought-Oversold levels for November 18, 2008
ETF Extremes Options Trading Strategy
* S&P 500 (SPY) - 41.2 (neutral)
* Dow Jones (DIA) - 41.9 (neutral)
* Russell 2000 (IWM) - 32.4 (neutral)
* NASDAQ 100 (QQQQ) - 26.5 (oversold)
Sector ETF Extremes Options Strategy
* Biotech (IBB) - 38.2 (neutral)
* Consumer Discretionary (XLY) - 30.7 (neutral)
* Health Care (XLV) - 39.5 (neutral)
* Financial (XLF) - 25.2 (oversold)
* Energy (XLE) - 49.7 (neutral)
* Industrial (XLI) - 32.3 (neutral)
* Materials (XLB) - 31.0 (neutral)
* Real Estate (IYR) - 29.8 (oversold)
* Retail (RTH) - 33.1 (neutral)
* Utilities (XLU) - 46.7 (neutral)
Ultra Extremes (Insiders Page Only)
* Ultra Long (SSO) - 34.2 (neutral)
* Ultra Short (SDS) - 59.0 (neutral)
If you would like to follow my strategies with real-time alerts or have them auto-traded by a participating broker please click the following link! Try my options trading strategies.
ETF Extremes Options Strategy
April 28, 2008
Individuals that look for frequency of trading within a given options strategy are often disappointed with the long-term results. In most cases, the less you trade, the better you will do in the long run and the long run is what matters most.
This options trading strategy uses our proprietary models to take advantage of sentiment and technical extremes. We are proud to be one of the only stock options-based newsletters to offer recommendations based on sentiment and technical extremes in the market. This options strategy requires patience coupled with a disciplined approach. The strategy will make approximately, on average 1 to 3 recommendations a month with holding periods of 1 to 15 days; however, there will be some months when no recommendations are made. The key to this options trading strategy is patience. Waiting for the appropriate scenario to recommend trades with a high probability of success is what makes this strategy a success.
DIA, IWM, SPY and QQQQ are the underlyings of choice for the ETF Extremes Options Strategy.
Unfortunately, this strategy is proprietary so we are unable to give you all the details.
If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.
Click here to find out more about Autotrading.
Sector ETF Extremes Options Strategy
April 28, 2008
A short-term stock options strategy that is based on a technical mix of overbought and oversold extremes in the market. The Sector ETF Extremes Stock Options Strategy is the same as the ETF Extremes Options Strategy with the only difference being the underlyings of choice.
Biotech (IBB), Consumer Discretionary (XLY), Health Care (XLV), Financial (XLF), Energy (XLE), Industrial (XLI), Materials (XLB), Real Estate (IYR), Retail (RTH), Utilities (XLU) are the underlyings of choice for the Sector Extremes Option Trading Strategy.
Individuals that look for frequency of trading within a given strategy are often disappointed with the long-term results. In most cases, the less you trade, the better you will do in the long run and the long run is what matters most.
This strategy uses our proprietary models to take advantage of sentiment and technical extremes. We are proud to be one of the only stock options-based newsletters to offer recommendations based on sentiment and technical extremes in the market. This options strategy requires patience coupled with a disciplined approach. The strategy will make approximately, on average 1 to 3 recommendations a month with holding periods of 1 to 15 days; however, there will be some months when no recommendations are made. The key to this stock options strategy is patience. Waiting for the appropriate scenario to recommend trades with a high probability of success is what makes this strategy a success.
Unfortunately, this options strategy is proprietary so we are unable to give you all the details. Although, we are certain if you follow our daily commentary and any subsequent trades you should gain a firm grasp of the strategy.
If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.
Click here to find out more about Autotrading.
Nasdaq 100 (QQQQ) Gap Fade Options Strategy
April 28, 2008
Bring your stock options trading to new heights. The Gap Fade stock options strategy is one of the most effective and easiest options trading strategies to learn. It also has the potential to be very profitable over the long-term. In fact, James Altucher, a successful money manager and author of “Trade like a Hedge Fund” dedicated the first chapter in his book to trading gaps. He states that gap trades are the “bread and butter trade” for many hedge funds.
Here at Crowder Investment Research, LLC, we have an unconventional method of trading gaps in the ETF QQQQ which represents the NASDAQ 100. Backtesting this particular method shows a win ratio which has exceeded 78% over the last ten years. Furthermore, the options strategy had a win ratio of 79% during the bear market of March 2000-September 2002. Take that win ratio and add a disciplined approach to trading the strategy and it’s easy to see how successful this unique strategy can be.
Basically, the Gap Fade options trading strategy consists of short-term options trades utilizing calls or puts that last a maximum of two days. The strategy typically trades one to five times a month, thereby limiting exposure to the market.
Statistical Data
The underlying QQQQ has a success rate of over 78% for the last ten years. With a total of 817 gap fade opportunities with 649 successful gap fills it is imperative to stay disciplined with this strategy. The following chart shows the year to year success rates of QQQQ gaps that are filled within the same day. The percentage is even higher if trade is held for a longer period. However, the risk exposure is also higher, so in most cases it is recommended that you follow the guidelines. Inherently options have finite lives, so holding on to an option for a lengthy period of time, in hopes of the initial gap filling, has the capability of being catastrophic to your investment capital.
If you like the idea of trading stock options, but also have a life away from your computer, Autotrade is the perfect solution. You no longer have to wait by your computer screen and monitor every e-mail throughout the day. The Autotrade service is “hands free” trading and is provided to you at no extra cost to the subscription price. With the proper authorization, an online broker can execute all recommended trades both entry and exit, profit or loss, faster than you could place them yourself and often at better prices.
Click here to find out more about Autotrading.
