This is the video recording of the April 2019 Conference Call for Members of All Star Options [Read more…]
[Options Premium] Playing for the Next Leg
The “Gap and Go” pattern is popular with intraday and swing traders. It is a situation where a stock gaps higher out of a base (often earnings driven), then punishes the opportunistic faders who are playing for the stock to come back and “fill the gap.” The opposite happens, resulting in a slow, painful grind higher hurting all those short holders.
We’ve got such a situation developing in the semis space, where a slow grind up has beaten all the faders to a pulp and now it appears we might be setting up for one final push to inflict hurt on the final stubborn bears. [Read more…]
[Options] All Quiet On The Retail Front — for now.
One of the most important parts of my process in selecting potential options trades is to assess the current volatility situation. Everything else being equal, I like to put on trades that position myself for volatility to revert to its mean. In other words, if volatility is high and therefore options prices are high, I want to express my directional trade in such a way that it might also benefit from volatility falling back to “normal” levels. Conversely, when volatility is low, I want any position I consider to benefit from a rise in volatility — if there is one.
There are no free lunches on Wall Street, nor in options trading. But betting on volatility reverting to the mean might be one of the closest things to it. The trick is in the timing.
Of all the most liquid ETFs I track, the one that has been the quietest lately — in terms of price action and volatility in options pricing — is the Retail Sector ETF $XRT. In fact, volatility in $XRT is currently at the lowest levels last seen in 2018 before the Christmas selloff. This has given me a wild idea… [Read more…]
[Options Premium] UPDATE to DowDuPont Trade
In light of DowDuPont’s $DWDP recent spinoff of Dow $DOW, it makes the maths a little more complicated on our trade.
Here is the press release from the OCC: https://t.co/QhpJMykSi8 (click the link then launch the pdf)
The short story is this: $DWDP investors are now entitled to one share of $DOW each every 3 shares of DWDP held.
This means that the true value of our options is price of DWDP stock + one third price of DOW stock (approximately). [Read more…]
[Options Premium] Texas State of Mind
In Texas, it’s often said: “Go Big or Go Home.”
We intend to do just that with a simple options play in a State of Texas namesake. [Read more…]
[Options Premium] An Analog Idea
The All Star Charts team is not wildly bullish on US stocks here, though the consensus is that eventually we resume higher out of some sideways action that might take a few months to work through. That said, there is one sector we feel will lead us higher when the time is right and we’ve got a candidate stock that offers us a good opportunity to express our mildly bullish stance while keeping our risks manageable. [Read more…]
[Options Premium] Positions Review Headed into April Expiration
Due to a scheduling conflict around the annual CMT Symposium in New York, JC and I will be doing our monthly conference call a little later in the cycle this month. But have no worries, I’ll provide some updates below on positions we have open with April options that may need some attention or adjustments. [Read more…]
[Options Premium] FAST earnings money?
I don’t often take long premium plays ahead of an earnings event, but there’s one coming on the horizon where the options pricing isn’t too high (yet) and the All Star Charts team has a price target that would yield us a greater than 4-to-1 return on risk if the earnings catalyst plays out in our favor. [Read more…]
- « Previous Page
- 1
- …
- 114
- 115
- 116
- 117
- 118
- …
- 135
- Next Page »