July 21, 2017

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...]

Underlying ETF Options Still In A Neutal State

The NASDAQ 100 (QQQQ) Gap Fade options strategy was extremely close to a signal at the open this morning, but unfortunately, QQQQ opened slightly below yesterday's high. The last few trading days have been close calls for the the Gap Fade strategy as QQQQ has closed near session lows and highs. Today was no different as QQQQ closed near the session lows at $48.54, with the low being $48.47 so a lower open tomorrow coutld trigger a signal if the initial decline is deep enough to warrant a good risk/reward and therefore a trade. Subscribers to the strategy, as always, will receive a real-time trade alert when and if one occurs. As for the rest of you, well, I will inform you here (at the daily options blog) of any trade and the … [Read more...]