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Options Oracle: 12/26/14

This is a stock that has enough volatility for us to buy out of the money calls in the June expiration month. As I mention in the video, there isn’t any need to place a stop on this position because the calls are only trading for around 50-cents. Later on we will look to sell a credit spread […]

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Options Oracle: Expiration Week Alert 12/16/14

This Friday marks expiration day for the December 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), Netflix (NFLX), Smith and Wesson Holdings (SWHC), Diamonds (DIA), Russell 2000 Short ETF (RWM), iShares Gold Trust (IAU), The […]

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Options Oracle: 12/11/14

The stock has moved in the direction I thought it would so now we are faced with having to make the decision of either selling out of our long put position for a profit or selling front month puts in order to turn this position into a diagonal calendar spread. From the looks of the chart I’ve chosen […]

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Options Oracle: 12/04/14

I often talk about fan lines as one of the best ways to measure the strength of a trend. However, as the angle of the trend continues to increase the probability of a price correction also increases. In this example, the angle of the 3rd perfectly with the 20-day moving average.

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Options Oracle: 11/27/14

Oil prices have dropped dramatically as hopes fade that OPEC, the crude producers’ cartel, will agree to reduce output. As you can see from this 3-year, weekly candle chart, the price has pulled back $17 from the highs in June. Most of the selling has been triggered by fear that overproduction could cause a drop in industrial demand. For […]

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Options Oracle: Expiration Week Alert 11/21/14

This Friday marks expiration day for the November 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), Netflix (NFLX), Smith and Wesson Holdings (SWHC), Diamonds (DIA), Russell 2000 Short ETF (RWM), and The Hershey Company (HSY).

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Options Oracle: 11/13/14

We have had great results with the Hershey Chocolate strategy. This is a regular cycle we’ve exploited for a number of years but this year we are getting into it a little bit earlier. The main reason for us selling this credit put spread is because of the bullish engulfing pattern that showed up yesterday.

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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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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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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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