The Market Guys

This Friday marks expiration day for the March 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), AT&T (T), Dollar General, Corp.(DG), Under Armour, Inc. (UA), Apple Inc. (AAPL), Huntsman Group (HUN), and The Traveler’s Companies, Inc. (TRV).

This is the first time we’ve traded TRV and it was hard to ignore the bearish engulfing pattern that showed up today on the daily candle chart. There are a couple of other signals that are developing that tell me the stock is heading lower. First and foremost, the stock is now trading below the former trend line. […]

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.

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 […]

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 […]

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 […]

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.

This is the first time we are taking an option position in Dollar General. The stock is showing a textbook hammer pattern on a major role reversal support line, with a wide divergence from the 20-day moving average. These are all bullish signals that will help us make money on the credit put spread that we are initiating.

This stock is one of the craziest ones I’ve traded. Today the stock closed almost $55 higher from the previous close on positive earnings news and created one of the widest gaps in the stocks history. We already have a diagonal put spread on this one but we are going to add a vertical (debit) put spread on […]

This Friday marks expiration day for the January 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), and Hershey Company (HSY).