This is the first time we are trading this stock. I originally wanted to buy leap puts on this company but there weren’t any available, so I went with the April expiration chain. This should still give us enough time to capture a profit without having to worry too much about time erosion. I do […]
Options Oracle: 10/25/13
Posted on October 25, 2013 by AJ Monte in Options Oracles
We’ve had great success trading Amazon in the past. The last time we took a position in AMZN we traded a diagonal put spread that lasted for over a year before we closed it out and it was one of the most profitable spreads in years. As you can see from the chart, the stock […]
Options Oracle: Expiration Week Alert 10/16/13
Posted on October 16, 2013 by AJ Monte in Options Oracles
This Friday marks expiration day for the October option chain. We are currently holding positions in the following companies; The Volatility Index (VIX), Gold ETF (GLD), Diamonds Trust (DIA). Baidu, Inc. (BIDU), Broadcom, Inc. (BRCM), Exxon Mobile (XOM), Apple Inc. (AAPL), iShares Silver Trust (SLV) and Netflix, Inc. (NFLX)
Options Oracle: 10/11/13
Posted on October 11, 2013 by AJ Monte in Options Oracles
We already have a credit call spread in our position for AAPL but the Bullish Engulfing pattern that showed up today got my attention. Last week we sold the 500/510 call spread in October which means we want the stock to stay below 500 by next Friday. The engulfing pattern is threatening that position so […]
Options Oracle: 10/04/13
Posted on October 4, 2013 by AJ Monte in Options Oracles
This is a “Bear Credit Call Spread” and as the name implies, this is a bearish strategy that allows us to take cash to our account when we sell the spread. The max profit for this particular trade is $1.70, which is the difference between the option we are selling less the cost of the […]
Options Oracle: 09/25/13
Posted on September 25, 2013 by AJ Monte in Options Oracles
When I look at the price of NFLX I can’t help but laugh. I’ve been trading stocks for over 30 years and it never ceases to amaze me to see how much risk investors are willing to take. The P/E for this stock is 385.71 with a forward-looking P/E of 86.77 and an income growth […]
Options Oracle: Expiration Week Alert 09/18/13
Posted on September 18, 2013 by AJ Monte in Options Oracles
In the nearby chart you will see a weekly candle chart of the Dow Jones Industrial Average ETF (Ticker: DIA). The price action is in the process of completing the final phase of a textbook head and shoulders pattern. The doji in the most recent candle represents the top of the right shoulder. This is […]
Options Oracle: 09/13/13
Posted on September 13, 2013 by AJ Monte in Options Oracles
This new position in SLV is a short-term strategy that will allow us to take a quick profit as the stock moves back up to the 20-day moving average. A one-dollar rally in SLV would result in a $.60 price gain on the option, giving us a return of 11.76%. I am not looking to […]
Options Oracle: 09/07/13
Posted on September 7, 2013 by AJ Monte in Options Oracles
Selling this credit put spread gives you a chance to collect a cash premium that will be applied to the purchase of Geron Shares (Ticker: GERN). Our initial risk will be in the Apple position, but should the stock stay above $470 between now and expiration day, we will be long GERN risk free. The […]
Options Oracle: 08/27/13
Posted on August 27, 2013 by AJ Monte in Options Oracles
Barrick Gold has reached a point of resistance, which was a short-term target area for us. You can also see that there is a bearish engulfing pattern that has showed up on higher volume. This tells us the sellers are moving in to take profits. My first thought was to sell at-the-money calls against the […]
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