Tuesday, January 23rd, 2018

Apple has been on tear. Literally it tore from a base in March  around 80 and ran up to 170 as of yesterday. That is a 90 point gain in just under 6 months. Those of you who played AAPL earnings and held AAPL throughout its upward trajectory into the right hand side of the chart […]

I have been so busy with this earnings seasons, have not spent much time writing. Making our money the old fashioned was- trading. Trading has been intense and sometimes downright brutal. Earnings season is  gift from heaven and the exploitation of trades and opportunities that it provides.  Many traders just make a whole bunch of […]

Market soared 289 points, SPX 2.05% and Nasdaq added 25 point all the while NDX still suffered down -5.28? That’s a divergence among the indexes? Why? Since we trade NDX a lot its important we should know these answers. I have been monitoring the markets and watching, AAPL, GOOG getting killed all day long. It […]

NDX bounced off its 50 day moving average at 1877 levels and RUT bounced off 720 levels at its 200 day moving averages. Had we broken down, than we could be seeing some serious downturns here and the whole market would have turned bearish. The good news today is that my McClellan Oscillator and Summation Index has […]

Index options trading is focused on major indexes wholly and not on individual stocks. The same principles can be applied to stock trading but often with different results. Indexes are an aggregate sum of stocks and move with the general trends prevailing in the markets, depending on the economy, oil, wars, and world events. 1. […]

With the market up second day in row NDX at 1900 levels and hitting 50 day moving average above, closed the NDX put spread for 0.05 cents. The theta on the spread was far less than next months at the same strike or above. Will look for new set ups in the making. Closed NDX […]

With a strong rally today DOW up 331 and NDX up 64.92, the bull put spread has diminished in value down to 25 cents. Because the markets are in rally mode, completing an IRON CONDOR is risky and and counter productive. The markets will start reaching your short strikes and there is not enough premiums. […]

These trades are good for 1-5 days following July expirations. RUT SELL RUT   AUGUST 610 PUTS BUY RUT  AUGUST 600  PUTS       Net credit 0.45 Margin required = 1000-0.45= 955  Probability 98% This is the first leg is a BULLPUT SPREAD of the final IRON CONDOR, that may be completed at any future date NDX SELL […]

Index options credit spread trading Credit spreads are constructed using either calls or puts or a combination of both. There are numerous variations of Credit spreads. A credit spread is usually a vertical spread. It is an options trading strategy in which you buy an option on a stock or index , either a call or […]