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Options Oracle: 03/07/14

This is the first time we have traded Huntsman Group through an option strategy and it was hard to ignore the bearish engulfing pattern today. As you can see from the chart, the stock closed yesterday with a long upper shadow which signals the sellers are putting pressure on the stock.

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Equity Oracle: 03/07/14

It’s been nine months since we traded SLV and we have been profitable trading it from the long side. Today the stock has made a move to fill the gap and it’s only pennies away from doing just that. Now that the stock has pulled back to a role reversal support we are looking to buy into this […]

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Options Oracle: 02/28/14

Apple Inc, is one of the most volatile stocks in the market which means there is a lot of opportunity for option traders to exploit the time value. As the volatility of a stock increases so does the time value on that option so selling a credit put spread can give us a nice return on investment while […]

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Equity Oracle: 02/28/14

It’s been a very long time since I’ve traded Verizon but there was a time when this was one of the hottest stocks on the board to trade. It is a stock that follows the technical signals very well and today we have another opportunity to get in on the long side.

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Equity Oracle: 02/21/14

It was a little over a year since we last traded BAC and it was a profitable trade. Today the candle looks positive and we have a clear target price in view. On the other side, we also have a clear stop level that will allow us to limit our risk by using the 1% Rule. If you […]

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Options Oracle: Expiration Week Alert 02/20/14

This Friday marks expiration day for the February option chain. We are currently holding positions in the following companies; Gold ETF (GLD), Diamonds Trust (DIA). Baidu, Inc. (BIDU), iShares Silver Trust (SLV). Netflix, Inc. (NFLX), Amazon, Inc. (AMZN), Dr. Pepper Snapple Group (DPS), AT&T (T), JDS Uniphase, Inc. (JDSU), Tesla Motors (TSLA), Hershey Company (HSY), Dollar General, Corp.(DG), and Under […]

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Equity Oracle: 02/14/14

On January 3rd an alert went out to buy Corinthian Colleges (COCO) on a contingent buy signal. The signal never came through, in the form of a green candle, so we never got into the stock. However, it looks like there may be another opportunity to buy COCO as it bounces off of a 4-year support level.

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Options Oracle: 02/14/14

Under Armour (Ticker UA) gapped up a couple of weeks ago but the signs are telling us the buyers are getting tired. The volume has been consistently dropping since the spike occurred the day of the gap and there is a nice role reversal target that can help us leg into a long-term diagonal calendar put spread. Once […]

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Options Oracle: 02/06/14

On October 25th, we bought the January 2015 390 Puts for $55.50 with an intent to turn this long put position into a diagonal calendar spread. Yesterday the stock filled the gap from October and formed a Doji Candle to the penny of that support level. Once again, I’m amazed at how accurate gap trading can be.

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Equity Oracle: 02/06/14

This is a weekly candle chart for Ford Motor Company (Ticker: F) Two weeks ago the stock close with a bearish engulfing pattern, which pushed the stock lower but this week, it looks as though we are going to close with a hammer pattern.

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