Archives: Uncategorized


Mish Schneider | September 26, 2017

S&P 500 (SPY) 248 support to hold. 250 resistance Russell 2000 (IWM) At the top of the monthly channel, should September end with this below 144, beware. Otherwise, looks explosive and not overbought. Dow (DIA) Reversal top unless clears 223.95 Nasdaq (QQQ) Confirmed warning phase. If this week closes under 141.85, could see another $10 drop. Over 144 better

Anatomy Of A Winning Vertical Bear Call Spread

Roger | July 16, 2017

Today, I want to demonstrate a recently completed vertical bear call spread, that worked out in my favor. The vertical bear call spread is one of my favorite options spreads and one I've used over the years to trade various stocks, commodities and index options. The vertical bear call spread is a combination of both an income strategy and a directional strategy all rolled into one. Typically, income strategies are designed to profit when the market holds

Selling Expensive Options With The Help Of Technical Analysis And Implied Volatility

Roger | July 15, 2017

Over the weekend I was conducting an options workshop for beginners who are just getting a handle on options basics. One question that I was asked, was whether options traders should stick to technical analysis of the underlying asset or if they should instead focus on the Greeks? Unfortunately there's no simple answer to this question; so instead of offering you a long explanation, I decided to show you a step by step approach to combining two

Trading Options With The Iron Condor Spread

Roger | July 14, 2017

Iron condor spreads are some of the most popular options trading strategies with both novice and experienced traders alike. Iron condor is really a combination of two vertical spreads; a call credit spread and a put credit spread and both spreads have the same expiration date. The main difference between the two spreads is the different strike price. The Iron condor is considered a market neural strategy, since it works best when the underlying asset

Using Delta To Determine Probabilities

Roger | July 13, 2017

One way to use Delta is to determine the chance that an option will be in the money at expiration. As a simple example, a 30 delta suggests that the option has a 30% probability of being in the money at expiration. If you are trading call options and the underlying asset rises, then the delta of that option would increase, because the probability of finishing in the money also increases. Often times professional option premium

Trading Bull Put Credit Spreads

Roger | July 12, 2017

One of my all time favorite options strategies is the bull put spread. Because it's a credit spread, you receive premium when you initiate or open the position. The ultimate goal of any credit spread, is to keep as much of the premium that you receive as possible and the bull put spread is no different. The best time to utilize the bull put spread is when you are bullish on the market, but only expecting

Choose The Right Call Option

Roger | July 11, 2017

There are many factors that go into deciding which call option to buy. One of the biggest mistakes that beginners make is focusing on the price of the call option, instead of the ultimate objective or the reason for purchasing the call option. The better way to approach this question is to determine exactly what the call option is worth and how much value you can gain from the option that you are interested in

The Basics of Buying Call Options

Roger | July 10, 2017

In very basic terms, when you purchase a call option, you profit if the underlying stock goes up and you MAY lose money if the underlying stock moves lower. Because you don't own the actual underlying asset, buying calls is substantially cheaper than buying stocks or any other underlying asset that you may be interested in trading. When you buy a call, you gain the right to buy the underlying asset at a specified price

Position Updates & Gauges For Trading on 12/14/2016

Mish Schneider | December 14, 2016

***Note: We came inches from our trailing stop in FCX at 14.44 but did not get hit. Use same stop. ***EXC: Raise sell stop to breakeven at 32.08. Lower first target to sell ½ the position to 35.97 market if touched. And be prepared for a go to market exit. After the FED meeting results settle in, there should be a few good trade setups to get into. In the meantime, our small but profitable

Focus List for 4/21/2015

Geoff Bysshe | April 20, 2015