As February gets under way, it’s time to review positions with February options that remain open (haven’t already hit profit targets or been stopped out). This month there isn’t much to discuss as most of our February options trades have already been closed out thanks to hitting their profit targets or getting stopped out.

Most trades I put on for All Star Options tend to have a minimum duration of 30 days (short premium plays) and often as long as 6-8 months (for long premium plays). As options approach expiration, greeks like theta and gamma start to become my enemy and whipsaw my P/L. Therefore, as options and spreads get into the expiration month, my best practice is to put each position on notice — it’s time to take action.

At the time of this writing, I’ve only got 2 remaining positions with Feb options.

In the scoreboard below I denote the date we exited each position:
[Read more…]

JC and I conducted a great options webinar last night, attended by well over 500 people. It was a fun opportunity me to lay out some of the core options strategies I employ on a regular basis to make trades in a variety of trading environments. And the questions we received from the audience showed that they were engaged and enthusiastic, which makes it great for everyone.

Options volumes on US exchanges have been exploding in recent years as investors and traders are waking up to the power and flexibility that trading options provides. And our event last night was a reflection on that.

Anyway, at the conclusion of our call, JC teased a trade out of me I had not yet put on but was considering entering. [Read more…]

Things are getting crazy out there. But this post isn’t going to be about all the deadwood companies whose stocks are getting short squeezed. I’m looking at some of the biggest names showing signs of breaking out and this is something investors should not ignore. We got into Google (Alphabet) recently, and this might be a double-down of sorts, but now we’re eyeing another mega cap. [Read more…]

Chatting with the team this morning, something that stuck out and we all agreed on is that the Megacaps are starting to show signs of re-asserting their dominance. And that it won’t be a one-day event. Just look at NFLX, MSFT, AAPL, and the like and you’ll likely see what we’re seeing.

And the stock that stands out the most to us right now is Google $GOOG.

Check out this chart: [Read more…]