I recently came across an article from a prominent options trader that was a true disappointment.
He brought up the question regarding credit spreads and if they constituted a viable options strategy. For some traders, credit spreads are not a viable strategy, but only because they prefer a different style of trading, not because the strategy is faulty.
Have you ever noticed, on the opening range of the option market, how often your stop gets hit? You know that the market makers can’t see where your stop is, but how can they find it so many times? I am going to share a little known secret with you about trading options. I have […]
Many options traders have requested that I publish my list of 40 ETFs that I follow on a daily basis for the Options Advantage portfolio. Well, per all of your requests I have decided to make my list available for weekly viewing in the Strike Price and daily viewing in my Options Advantage service. One […]
The talking heads in the financial media aren’t very much concerned with your long term investing success. They only care about convincing you to stay in the market at all times and fixated to their analysis for the latest market movements. When you hear someone else getting excited about a trade, it can be hard […]
Who is the better options trader? A. Two Nobel Prize winning economists who founded the very model that options pricing is based on. Or… B. A guy who thinks the market is like a giant poker game. Of course, A right? They are the geniuses. I mean they wrote the Black-Scholes options pricing model. But, if you […]
The second half of 2011 was not a great period for Gold because the precious metal lost more than 15% of its value. In fact, in the last week of the year, a rumored sell-off by a large sovereign investor took almost 6% off of the price. It now appears that that rumor was correct. […]
According to Freddie Mac’s weekly survey, rates on a 30-year fixed-rate mortgage averaged 3.88% for the week ending yesterday, which is a new record low, down from 3.89% the previous week and 4.74% a year ago. Rates on 15-year fixed-rate mortgages averaged 3.17%, up slightly from 3.16% last week and below 4.05% a year earlier.
On Wednesday the DJIA made new highs for the year, settling over the 12500 barrier for the first time in six months and clearly has last spring’s highs in sight. The Index is up more than 3% for the first 11 trading days of 2012. This is its best start to a New Year since […]
Are 50 bank failures a year going to be the new norm? In fiscal years 2006-07 only four U.S. banks failed. Contrast that to the “bank plague” of 2008-10 when over 300 banks failed, I guess only 92 in 2011 now seems like a good year. For the first time in three years, 2011 saw […]
While growing I listened a lot to the rock n’ roll band U2. Of all their albums, I’ve always liked The Joshua Tree the best. There’s a track on this record entitled “Running to Stand Still” and though I don’t think Bono had the S&P 500 in 2011 on his mind when he wrote the […]