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Options Oracle: Expiration Week Alert 10/17/12

This Friday marks expiration day for the September option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), Netflix (NFLX), Biogen, Inc. (BIIB), Baidu, Inc. (BIDU), Facebook, Inc. (FB), Cree, Inc. (CREE), S&P VIX Short Term (VXX). Watch this week’s […]

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Options Oracle: 10/11/2012

The general markets are showing signs of weakness which is why I’m suggesting a contingent buy order for the January 2014 30 Calls. We want to buy these only after we have gotten confirmation of a breakout over the resistance area. This resistance point is also the top of the Cup & Handle pattern and the buy signal […]

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Options Oracle: 10/04/2012

Buying calls is a basic option strategy that allows us to profit when the price of the underlying security moves up in value. The great thing about a long call position is that you can’t lose more that what you pay for the options. The best way to manage risk in a position like this is to make […]

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Options Oracle: 09/26/2012

As you can see from the candle chart above, the stock has dropped to a key role reversal support level and is showing a well-defined hammer pattern. The hammer is a very reliable buy signal that usually shows at the bottom of a downward leg. Watch this week’s video »

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Options Oracle: Expiration Week Alert 09/18/12

This Friday marks expiration day for the September option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), Netflix (NFLX), Biogen, Inc. (BIIB), Baidu, Inc. (BIDU), and Facebook, Inc. (FB). Watch the video »

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Options Oracle: 09/13/2012

We are selling in-the-money puts in an effort to buy the stock at expiration. Should the stock move up and stay over the $21 strike price then we would not get to buy the stock. However, we would still get to keep the premium we’ve collected. That wouldn’t be so terrible because it would result in a 6% […]

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Options Oracle: 09/07/2012

We are “rolling down” the strike price on the short side of our calendar spread for BIDU. We originally bought the Jan 110 Calls for 27.20 on August 24th, then we sold the October 125 Calls for 3.20 on August 29th. This lowered the cost basis of the leaps to 24. Rolling down the short side of the […]

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Options Oracle: 08/29/2012

Baidu bounced perfectly off of support just like I thought it would and it is now moving towards the 20-day moving average. The original strategy was to buy the Jan leap and wait for the stock to move higher before selling the near-term calls against the long position. This will turn the position into a diagonal call spread […]

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Options Oracle: 08/24/2012

Baidu has been a great trading stock and it looks like we’ll have another opportunity to take profits out of this long call position. Our goal is to buy the LEAP, wait for the stock to move higher and then sell front month calls against the long leap to collect a premium and lower the cost basis of […]

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Options Oracle: Expiration Week Alert 08/15/12

This Friday marks expiration day for the July option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), Potash Corp. (POT), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), SPDR Dow Jones Ind. Avg. ETF (DIA), Netflix (NFLX), Biogen, Inc. (BIIB) and Chipotle Mexican Grill (CMG). Watch the video »

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