Archive for May 2014

The Best Use of #Option #Volatility in Low Volatilty Environments

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Today, May 30, 2014, S&P 500 is resting at all-time highs in the VIX is very low. Not quite the lowest in history, but low enough that it becomes hard to make decent positive Theta trades that rely on higher volatility. In this environment is actually time to consider debit trades versus credit trades. One…

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Is Today a Market Inflection Point?

Several times a year, I get an eerie feeling when looking at my trading. I find myself scratching my head, and wondering, “is it going to get worse from here?” Many times I found that be the inflection point or reversal and trend. I’m not sure if today’s trading is that they, however, it does…

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May 25, 2014 Weekend Summary by Investmenthouse.com

Here is the link to today’s weekend summary by Investmenthouse.com. ┬áSellers leave early for holiday, stocks continue rebound through Friday. Growth sectors again show more strength with NASDAQ making an important higher high. Leadership shows some old faces, new faces, and new old faces. VIX breaks below range. Lions, tigers and bears, oh my. The…

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Why #Options #Trading is the New Black

Many people think that options trading is a very risky investment. Although there are risks involved in options trading, there are also risks in stock trading, mutual fund trading, and almost any other investment in the world. What I found is that if you use defined risk strategies, you can minimize your risk even lower…

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Comparing High IV Option Spreads by Tastytrade.com

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In this video Tom and Tony compare short premium options trades against previous shows. In this video they compare and at the money straddle, the Jade lizard, and a broken wing butterfly.   For purposes of this study, the following were used: EWW, GLD, IWM, SPY, & TLT Five years Trade on first day of…

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May 18, 2014 Weekend Market Summary by Investmenthouse.com on SellTheta.com

Here is this weekend’s link to the Weekend Market Summary: Stocks rebound from Thursday selling, but looks like afternoon short covering on expiration Friday. Housing starts jump thanks again to multifamily. Michigan Sentiment slips, but at these levels, who cares? Stocks head into next week with the same issues: in position to bounce but bigger…

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May 4, 2014, Weekend Summary by Investmenthouse.com on SellTheta.com

This week’s weekend summary from Investmenthouse.com┬ácovers the following concepts: Jobs headlines trumpeted, reality still harsh, stocks and bonds not buying it. Looks like a few make up jobs as participation crumbles, 1M added out to the out of workforce category, wages still stink. Since the bottom of the recession, as many have left the workforce…

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