by Dan Keen Sometimes a stock price may drop significantly before you have time to catch it and react. The best choice in this situation may be to continue writing covered calls but with lower strike prices than you would like, and to get a decent premium....
by Thomas DeMark An option contract holder is bestowed with three choices – exercise the option, let the option expire, or trade the option. But how does a trader decide which of the three alternatives to choose? A large portion of this decision is...
by Oliver Velez The Long Term Timeframe The long term timeframe consist of yearly and monthly charts. A yearly chart is a chart where every bar represents one year of trading. The yearly chart is used primarily for cyclical analysis and sometimes for...
by Rob Roy Technical Exits Technical exits refer to points on a chart where the trader would exit the trade regardless of profit and loss on the options. Once the stock has reached either the bullish or bearish target it would be wise to close the trade – win,...
by Darrell Jobman Let’s say that you wanted to divide your $200,000 investment portfolio into two portions. First, let’s invest $180,000 in Dow Jones Industrial Average (DJIA) stocks to take advantage of the index basket concept without having to worry about...
by Jea Yu Just like carving up a chicken, there’s primarily four meaty parts to earnings report trading. Using the analogy of the breast, drumsticks, thighs, and wings – the key is to make sure the meat is fully cooked! Post-Market Reaction: Thigh First of all,...
by Peter McKenna A great benefit of event trading is that it sets you free from the expense of relying on the so-called market experts, the analysts, brokers, pundits and commentators who assure you they can pick the right stocks to buy and tell you where the market...
by Don Wellenreiter A basic approach to futures trading is to either buy off of support lines or sell off of resistance lines. This is especially true in a non-trending market. A support line is an area where the market has traded down to previously, held at that...
by Jon Najarian The most basic way to price an option is to start with a strike price. If IBM is trading, for example, at $90 a share, and you decide to buy a call – or in Wall Street parlance, to go long a call – at the $95 strike price, you are buying the...
by Lee Gettess Many of you will have come to know the M.O.C. order we use to exit as standing for Murder On Close rather than Market On Close. There are times when it is better to exit prior to the close. Here are things to look for: Three o’clock (15:00)...