The Market Guys

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 […]

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 […]

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 […]

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 »

On June 8th we bought the January 11 Calls for 4.60. The stock has since stayed in a trading channel with the price now at the upper resistance area of the price range. The red spinning top is a signal that the sellers may, once again, be moving in to push the stock lower. Another signal that tells […]

As you can see from the chart, there is a lot of room to go on the upside if this stock is going to fill the gap. A credit put spread makes money on the way up, so if the stock stays over the $290 mark we will get to keep the $3 credit to our account. […]

This is a new calendar spread that we are taking in Biogen (BIIB). It’s obvious that this stock has been in a well-defined upward trend and it looks as though there is enough support in this stock to justify a long diagonal call spread for a position. The trade instructions are laid out at the top of this […]

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), Starwood Hotels (HOT), iShares Gold Trust (IAU) and Hain Celestial Group, Inc. (HAIN). […]

On May 25th we initiated a long call position in NFLX. Over time, we added a credit put spread to the position and eventually sold calls against the long leap position to lower the cost basis. Now that July expiration is right around the corner, we are going to sell the August puts against the existing position to […]

In two weeks we will see the July Option Chain go off the board and the August options will take their place. For the option trader, this is the busiest time of the month because we will be rolling our positions and adjusting them for maximum profit. Stay alert and keep your eyes on your mailbox because there […]