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Options Oracle: 05/21/15

Selling vertical credit put spreads is a bullish position and as you can see from the chart above, Baidu is showing a bullish engulfing pattern as the price is bouncing off of a key role reversal support level. The other bullish confirmation is the fact that the volume has been dropping as the stock has […]

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Options Oracle: Expiration Week Alert: 05/13/15

This Friday marks expiration day for the May option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Netflix (NFLX), Diamonds (DIA), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA) US Dollar Index Bullish Fund (UUP), and Google, Inc. (GOOG).

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Options Oracle: 05/07/15

As you can see from the weekly candle chart of Google, Inc. (GOOG), the price action has formed a classic, textbook, triangle pattern. As we have learned from our experience with trading triangles, once a stock breaks out above resistance, or below support, the price will generally continue in that direction for a while before […]

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Options Oracle: 05/01/15

Last week when we sold the June 480/500-call spread for $3.20 I expected that it would take until June expiration for us to realize our profits. Surprisingly enough the price dropped enough in one week for us to realize an 11% profit in a short period of time. Although I think this call spread will […]

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Options Oracle: 04/24/15

As you can see from the chart, Amazon has gapped up significantly after an earnings announcement the left investors feeling bullish. The company reported and “in-line loss” but the analysts are the ones who actually created the gap up when they reported that the sales numbers exceeded their expectations.

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Options Oracle: 04/16/15 (Special Alert)

This is a bearish position that will leave us with a profit should AZO close below 690 tomorrow (Firday Apr. 17th). Today the stock dropped as low as 686.14 but the calls still held a respectable premium. If the stock drops back down to test the 686 low tomorrow, you might want to unwind the […]

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Options Oracle: Expiration Week Alert 04/15/15

This Friday marks expiration day for the April option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Netflix (NFLX), Diamonds (DIA), Russell 2000 Short ETF (RWM), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA) US Dollar Index Bullish Fund (UUP), Autozone, Inc. (AZO), […]

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Options Oracle: 04/09/15

Like last week, we are once again faced with a triangle pattern that is close to a breakout. This chart of Apple, Inc. is very similar to the one posted in the last alert for Novagold (NG). The credit put spread in Apple will pay for the long calls that we bought in NG, giving […]

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Options Oracle: 04/03/15

Triangles are very reliable patterns that are followed by many traders, and as you can see we are at the brink of a triangle breakout. Can the stock breakout to the downside? Yes it can, but we are not going to be too concerned about that because we will be placing a trade next week […]

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Options Oracle: 03/26/15

As you can see from the weekly candle chart of Sandisk, the stock has stopped right at a key role reversal support level. This support level will help us manage risk by making it easier for us to pick the strike price we want to sell.

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