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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Options Trading Chart of the Week

Option Trading Article of the Week

Option Trading - Stock Option Trading Strategy For “V” Bottoms!

Posted by Pete Stolcers on July 23

Long-term up trends eventually succumb to a buying frenzy. The market establishes such a strong, predictable rally that investors get overconfident and they plow money into stocks. As they do so, prices become vulnerable to a sharp decline. An unforeseen political or economic event blindsides traders and uncertainty creates chaos. As the market falls, some of the froth is taken out when overexposed speculators and investors bail on their positions. Fear flows through the market as traders try to adjust their risk and gauge the magnitude of the news. Eventually, the impact is quantified and traders realize that the long-term…

Stock Options Question of the Week

How To Get In When You Can’t Be Around.

Posted by Pete Stolcers on September 16

Question Today Tim S. asks, “Often, I see a good trade but I can’t be around to watch it. When I pay up, it goes against me, when I put a low bid in it runs up without me. What can I do?”

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