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All Star Charts

Expert technical analysis of financial markets by JC Parets

[Options] July Positions Review

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As July gets under way, it’s time to review positions with July options that remain open (haven’t already hit profit targets or been 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. [Read more…]

[Options Premium] Keeping it Close to Home

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Well, since we’re all stuck at home for the foreseeable future, we might as well spend some money on making “home” the best we can make it. Those long dormant “some day” projects that have been rattling around our brains all seem to be taking on a smidge more importance these days.

Americans seem to be getting back to work — at home, ON the home. The chart of Home Depot $HD share price certainly bares this out as we’re currently hanging out at levels above the pre-coronavirus selloff: [Read more…]

[Options Premium] Getting Long the Whole Space

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Steve Strazza posted a great piece on a bunch of stocks in the Biotech space that are setting up for some nice runs. And he outlined 6-12 month price targets for all of them, should the move materialize. There are some robust gains to be had here:

As long as price is above its 2015 highs near 134, we don’t want to bet against this breakout. Sure, we’d like to see momentum register an overbought reading and finally confirm these new highs, but price is always the final arbiter of truth… and right now, it’s pointing higher.

From an options trader’s perspective, unfortunately there isn’t a ton of options volume and open interest in many of these names. This is a bummer.

But have no fear, there’s still a smart, risk-defined way to play the space. [Read more…]

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