Archive by Author

Options Oracle: 11/08/14

The iShares Gold Trust trades 1/10th the price of GLD making this a cheaper way to add to our gold position. The January 2016 10 calls are trading for around $1.80 making this a great position to hold on to as we look for spreads and credits that will help us pay down the cost of these leaps. […]

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Equity Oracle: 10/30/14

You can see from the weekly candle chart above that the stock is bouncing nicely off of the role-reversal support line, around $10. It’s nice when a stock forms a clear pivot point at a support level because it not only helps us with the entry point, but also helps us with an exit strategy for managing risk.

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Options Oracle: 10/30/14

On October 9th we bought the April 16 Calls in RWM for $2. The price has dropped since but as you can see from the chart the volume is also dropping. This divergence is a very bullish signal which is why I’m suggesting that we add more calls to our position in order to average the cost down […]

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Equity Oracle: 10/23/14

J.C. Penny is trading very close to its 20-year lows and it looks as though the stock is pivoting higher to re-test the 50-day moving average. This is an opportunity for us to get into a long position at a reasonable price. If the stock looks like it is going to close below support then […]

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Options Oracle: 10/23/14

On September 4th we bought the January 2016 230 Puts for $30. The stock dropped shortly after that just as we expected it to do and this allowed us to sell the November 200 Puts for $4.75. The credit we collected helped lower the cost basis of the January Puts to $25.25. Now our goal […]

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Equity Oracle: 10/16/14

This week has been one of the most volatile weeks of the year and investors are having a hard time trying to figure out what to do with their money. Fortunately, we have a plan in place that’s working and it looks as though we are about to set ourselves up in another great trade.

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Options Oracle: Expiration Week Alert 10/14/14

This Friday marks expiration day for the October option chain. We are currently holding positions in the following companies; Gold ETF (GLD), Baidu, Inc. (BIDU), iShares Silver Trust (SLV), Amazon, Inc. (AMZN), The Traveler’s Companies, Inc. (TRV), Cancer Genetics, Inc. (CGIX), the S&P Volatility Index (VIX), Netflix (NFLX), Smith and Wesson Holdings (SWHC), Visa, Inc. (V), McDonalds Corp (MCD), Diamonds […]

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Options Oracle: 10/09/14

The Proshares Short Russell 2000 ETF is an exchange traded fund that will allow us to make money should the Russell 2000 drop in price. As you will see from the video I’ve produced for you, the Russell 2000 is breaking down and the bears are moving in. This, in turn, will cause RWM to rally in price […]

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Equity Oracle: 10/09/14

This is turning out to be one of the most interesting topping patterns of my career. Every major index is showing an over-extended trend and the reversal signals are getting more obvious, yet the Dow, S&P and Russell 2000 keep trying to hang on to the highs. This is the perfect time to buy into a bear strategy.

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Equity Oracle: 10/02/14

The Dow Jones Industrials have taken a beating over the past few days but there are a handful of small cap stocks that still look promising. Keep in mind that our time frame for this trade is very short-term.

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