Daily Option Trading Commentary

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As Expected - SPY 85 Failed - A Price Pattern Will Set In!

A week ago, the market staged a huge intraday reversal after testing horizontal support at SPY 85. That rally was sparked by the G20 meeting and traders did not want to go home short. That one-day rally stalled heading into the weekend. Leaders from the world's largest economies agreed that the financial crisis is dire and immediate action is needed. Unfortunately, the biggest economy has a “lame-duck” President in the saddle for two more months. The market resumed its decline on Monday and bad news seeped in from every corner. The “Big Three” were grilled by Congress as they pleaded…
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Option Trading Article of the Week

Option Trading - Option Trading Strategy For “V” Bottoms - Leg 4

Posted by Pete Stolcers on October 24

Two years ago I wrote a series of articles on how to trade "V" bottoms. WE ARE NOT IN A "V" BOTTOM SET-UP - WE ARE IN A BEAR MARKET. This stage of the trading strategy does tell you how to trade once the low has been established. We are near a capitulation low and these instructions should help you trade bear market rallies. To read all of the articles, please use the Search box and enter "V" Bottoms as the keyword. In Leg 3, we saw the market break below SPY 105 and make a new relative low at…

Stock Options Question of the Week

Why Use The SPY As A Market Gauge?

Posted by Pete Stolcers on July 19

Question Today I'll address a question I found in the comments. Will Maddox asks, "Why do you use the SPY as a measure of what the market is doing?"

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