With two weeks to July expiration, it’s time to review our July positions that will be expiring soon and take any actions that are necessary to reduce risk or take profits. This is the time of the cycle when the theta cost of our long premium plays will start to accelerate against us, or the gamma risk in our short premium plays will start to ramp quickly against us. No bueno in either case. [Read more…]
With earnings for Apple coming up on July 31, there’s just enough time, worthwhile juice, and a significant price level to lean against in order to potentially bite off some quick profits in $AAPL while limiting our downside risk. Since we don’t have much time, lets cut right to the chase… [Read more…]
The running metaphors for Nike $NKE stock are too obvious, so I’ll do my best to avoid them. However, it cannot be denied that last week’s monster gap higher coming out of earnings has launched the stock around the final turn and it is now sprinting towards a big, fat, round number – $100. That big magnet coupled with a pretty common phenomenon called “post earnings drift” following positively received earnings events sets up a pretty compelling case for a profitable move setting up. [Read more…]
Continuing with a theme that emerged for us this week, we’re taking recent volatility climbs as a gift to help us get through a typically slow summer trading period. Weeks like this one — just ahead of a holiday week — are the kinds that level-headed premium sellers wait for when putting on their “income trades.” [Read more…]
I feel like the recent minor skirmishes in U.S. stocks over the past week have been a nice little gift for premium sellers heading into what is a traditionally the slowest period of the calendar year. With the Independence Day holiday on the horizon, it’s looking to me like a great time to start selling some premium in the indexes. So we’ve got a quick and easy one to set up before you light up your grills and sparklers. [Read more…]
Last week, Tom Bruni penned a post titled Global ETF Carnage Continues, highlighting how ETFs representing stock markets around the world have been getting hurt by US Dollar strength. While he isn’t yet calling a bottom, there was one particular Latin American ETF that was beginning to show signs of bottoming and it is a scenario he’d like to see replicated in more global ETFs to give him confidence the turn is coming.
The best way I know how to stay engaged in this possible turn is to have some skin in the game. [Read more…]
If you’re like me, you think ATM charges are a crime. And one of the worst offenders is Chase, part of JP Morgan’s umbrella. It’s time we make them pay us back for all the ATM fees they’ve stolen from us for the privilege of having access to OUR money.
It just so happens, I see a great opportunity shaping up to make some high probability cash flow to replenish our bank account balances. [Read more…]
AMD has had a tremendous run off this April’s lows, where it bottomed out around $9.00. Today, it’s trading north of $16. That’s a greater than 75% move in about 11 weeks. Wow.
But we have some very important technical and supply-and-demand reasons to believe the move might only just be getting underway. And we want to participate, but limit our risk in doing so. [Read more…]