Option Trading Article of the Week
Option Trading - Short The Weak - A Current Example!
Posted by Pete Stolcers on August 12
In this option trading blog, no consideration has been given to your suitability for this trade. It is intended for educational purposes only. 1. First you have to get a feel for what the SPY has been doing. For the last 5-days, it has been relatively flat with a $.50 change for the week. 2. This is a 5-day chart of LAMR. Notice how it gapped up 4-days ago and it has been drifting lower all week. In fact, that day it had an intraday reversal and closed down for the day. Look at what the stock did the next…Read the rest of Option Trading - Short The Weak - A Current Example!
Stock Options Question of the Week
Surrogate Market Positions - How and Why?
Posted by Pete Stolcers on March 11
Question Over a year ago, I featured this question in my option trading blog. The market conditions have changed, but the concept has not. Lee T. asks, “Can you recommend a stock that I can use as a proxy for the S&P? I would like to make directional bets on the market for seasonal trends such as a year-end rally, and swing trades spanning a few days or weeks. But options on SPY don't seem to work well since the SPY has a historical volatility of six. I've seen some people use GOOG as a market proxy but I am also not wild about options on a $400/share stock that trades on the NAS. Are there any NYSE stocks that might work better?
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