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Options Oracle: 05/25/2012

This long LEAP position we are taking is the first part of a Diagonal Calendar Spread. Our goal is to wait for the stock to move higher as it is drawn to fill the gap. Once the stock has moved up we will then sell the near month, at-the-money calls to complete the spread. The risk is to […]

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Options Oracle: Expiration Week Alert 05/15/12

This Friday marks expiration day for the May option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), Potash Corp. (POT), the Volatility Index (VIX), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), SPDR Dow Jones Ind. Avg. ETF (DIA), and Apple, Inc. (AAPL). Our Baidu position got stopped out […]

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Options Oracle: 05/11/2012

I don’t expect the large gap to the downside to fill right away but I do see the market attempting to retrace at least half of the gap. This would bring us to the role-reversal support line as well as the 20-day moving average for the stock. The long shadows at the top of the most recent candles […]

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Options Oracle: 05/02/2012

Buying into the LEAPs before we sell the near month calls allows us to “leg in” to the position in order to maximize our profits. “Legging in” subjects us to more risk in the beginning but the rewards are much greater if we sell the near month calls at a higher price. If you feel that you’d rather […]

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Options Oracle: 04/27/2012

If you have ever questioned the accuracy of the charts then you need to look at the facts. This week I did a show in our studio with Options Expert, Bill Johnson. During the show I posted the spreadsheet that I made tracking the accuracy in the forecasts from the show recorded on March 19th. We scored 100% […]

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Options Oracle: Expiration Week Alert 04/18/12

I’ve been talking about the expected rally in the VIX for quite some time now and as you can see from the most recent chart (see above), the price has rallied just as I said it would. Now the price action is running in line with the 20-Day Moving Average, which is why my bias is still to […]

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Options Oracle: 04/13/2012

My call on the market was right on the money. If you took a position in the DIA Puts last week you should already be up on the trade and set up for the next move lower. Now that the Dow is trading well below its 20-day moving average we should see an increase in the selling activity […]

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Options Oracle: 04/06/2012

The Diamonds have been trading in a well-defined trading channel for the past three weeks but it looks like there are signs of a possible breakout below the established support level. Our strategy is to wait for the break below support and buy the January 135 puts so we can capture profits as the Diamonds move to the […]

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Options Oracle: 03/30/2012

Last week the alert went out to buy the Jan 2014 180 Calls when the stock broke out over the resistance point. You can see on page one of this document the chart that went along with that trade announcment. If you look on page two you will see the most current chart for Amazon that clearly shows […]

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Options Oracle: 03/23/2012

There is a lot to be said about the most recent green candle on the weekly chart. Not only is it one of the longest green candles we seen in months, it is also showing up on stronger volume. In addition, there are very small shadows found on the upper and lower end of the price range. This […]

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