The past 6 months for the S&P 500… …I wouldn’t call it quiet… …but the market has gone nowhere since November. This is most likely a reaction to the Fed’s non-reaction, and how any new piece of economic data gets boiled down to a “will they or won’t they” projection onto what the Fed will […]
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Playing Both Sides: Another Case Study in GOOGL
If you just made a successful trade in a stock, that doesn’t mean you should take it off your watchlist. Instead, you should look for new opportunities as you may have a good feel for how the stock trades. After this amazing call in the breakout in GOOGL, I became more short biased and looked […]
Banking on Bull Call Spreads: A Case Study in GOOGL
Doing well in options trading isn’t just about picking the right stocks and hoping for the best. It’s about understanding what option strategy is best given the current situation. A few weeks ago, I became bullish on GOOGL as it failed to breakdown and had a good earnings reaction. But instead of buying calls straight […]
The Best Option Trading Strategy for New Traders
It’s gotta be overwhelming if you are just starting out. The options market allows you to take different opinions on a stock… … not just bullish or bearish, but how fast the stock will move and how long it will take. So you crack open the closest option trading book out there and you see […]
How to Trade Basing Patterns: A Video Case Study in FSLR
Buying stocks that are in long term downtrends can be a tricky play. How do you know that the rally isn’t just a fakeout to head to new lows? How can you be sure that the stock will see followthrough so you can profit on the long side? There’s absolutely no way to be 100% […]
Making Money Trading AAPL 3 Different Ways
When trading options, the best edge you can get is understanding the role of volatility in both the stock and the options. What that means is there is no “one size fits all” kind of option strategy. Your trades should reflect what you think about the stock – not only what direction you think it […]