We’re buying the $CVX January 2024 150-strike call options. Yes LEAPS!
Check out our short video with the thought process behind this trade: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
We’re buying the $CVX January 2024 150-strike call options. Yes LEAPS!
Check out our short video with the thought process behind this trade: [Read more…]
From the desk of Steve Strazza @Sstrazza
We held our February Monthly Strategy Session Tuesday night. Premium Members can access and re-watch it here.
Non-members can get a quick recap of the call simply by reading this post each month.
By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends.
This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big picture” point of view.
With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.
by Ian Culley
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The path of least resistance is higher for yields, as the market continues to punish investors for buying bonds.
As long as that’s the case, we want to look for short opportunities when approaching the bond market.
Since the shorter end of the curve has ripped higher, the moves in these contracts and ETFs are extended. They simply don’t offer favorable risk/reward trade setups at current levels.
We’re better off looking for ways to play rising yields further out on the curve in this environment.
We’re going to discuss how to do just that by covering a few charts that are setting up on the short side.
by Louis Sykes
If you’ve been involved with crypto, you’ve probably heard the term “whales” thrown around countless times. There’s an almost conspiracy-like aura surrounding this cohort of Bitcoin holders.
With an incredible amount of attention placed on this trader cohort, it’s important to understand their role in driving price action, macro trends, and more importantly, following their movements.
So, first things first, what even is a “whale”?
[10/19/23: updated stop to 155]
We’re taking a Leap here.
The overwhelming majority of options trades we put on at All Star Options tend to be structured in a way to participate in moves that should take place within 2-8 months. The shorter duration trades are usually trades where we are net short premium (naked puts, short strangles, bear call spreads, etc), whereas our longer-term trades tend to be ones where we are net long premium at attractive prices (in volatility terms).
Today, we’re doing something we’ve never done here. We’re making a long-term bet utilizing LEAP options.
“LEAP” is an acronym for Long-Term Equity Anticipation Securities. Essentially, this means we’re taking a position in options that have greater than a year until expiration.
If you were on the @allstarcharts twitter SPACES chat this morning (every trading day at 11:30ET), you heard us riffing on today’s trade. [Read more…]
by JC
Last night went a little longer than I intended but I think it was necessary.
We had a lot to discuss. I hope you found that helpful.
Premium Members can watch the replay of our Live Video Call and download the slides here.
But this is what’s on my mind: Is this US Dollar unwind just getting going?
Is there anything more bullish for risk assets than the US Dollar falling apart? [Read more…]
by JC
This is the video recording of our February 1st Monthly Charts Live Strategy Session
by Ian Culley
From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Commodities and cyclical assets have remained resilient, defying headwinds from the US dollar for nearly a year.
But the US Dollar Index $DXY is sliding lower as evidence mounts in favor of further weakness…
Could those headwinds soon fade away?
Today, we’re going to highlight some critical developments and discuss what they mean for the US dollar, stocks, and commodities in the weeks and months ahead.
Let’s dive in!