June 25, 2017

Short-Term Reprieve Occurs – Will It Continue?

The short-term reprieve that I mentioned in the Free Weekend Report (Sign-Up Free Here) occurred today and by the looks of it we could see more downside tomorrow. As I mentioned in the report "as for the current technical picture, the all of the major indices and most sectors are in a short-term "very overbought" state as we head into the week of options expiration. Not only are the major benchmarks in one of the most short-term overbought states that we have seen in quite some time, but we are now hitting strong overhead resistance with two unclosed gaps directly underneath. Combine all of the aforementioned and you can quickly see why the risk/reward scenario leans heavily towards a short-term reprieve next week." Now all of our … [Read more...]

Options Strategies Continue To Shine In This Volatile Market

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...]

The Best Options Strategies Take Discipline and Patience

High-Probability, Mean-Reversion Options Strategy Update The month of June started with a bang for the bears. The S&P 500 (SPY) lost 2.3% since Tuesday's close and many options traders I know believe the market will experience a "June Swoon" to start the summer. Of course,  most of you already know the High-Probability, Mean-Reversion options strategy doesn't really care where the underlying market goes, the options strategy only cares about short-term extremes in the underlying market (S&P 500, Dow, Russell 2000, Nasdaq 100, etc.). In the highly-active world of options trading waiting for an extreme takes great patience. Discipline is of the utmost importance. Anyone can place a directional play and do well for a time, but … [Read more...]

S&P Moves Ever Closer to Closing 4/20 Gap and “The Option Strategy”

The S&P 500 (SPY) pushed lower today to come ever closer to closing the gap from 4/20. SPY moved fell to a low of $132.12 before bouncing to close the day over $1 higher at $133.17. It would take a move to $131.35 for the gap to officially close. My stance is that we shall see a series of gaps close this summer beginning with the 4/20 gap, followed by the 12/1/10 gap at $118.01 with the potential of a close of the 9/1/10 gap at $104.41 the bears truly take control. I do not expect the latter gap to close this summer, but it would not surprise me to see the gap close over the next 12 months. For me, it truly doesn't matter. I enjoy speculating (like everyone else) where the market is going to go, but no one really knows. I do not … [Read more...]