One of the most important things any options trader can learn is how to buy on a breakout and sell on a breakdown. It is at these moments that the best opportunity for a gain often lie. But you have to be quick! When a stock makes a big breakout or breakdown on heavy turnover,…
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Options Trading Webinar: Ashraf Laidi Analyzes The Global Economy, Currencies, and More One of our most popular options trading webinar guest returned – and boy, was it a packed house! Once again, Ashraf Laidi and I had a phenomenal discussion and fielded numerous thoughtful questions from the audience. For those of you who don’t know Ashraf,…
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When I reviewed Micron Technology’s chart back in March, I said it had some great potential to rise again and challenge higher prices. At that point, the 200 ma was looming overhead, and I knew that pushing through that level would be a challenge. Sure enough, the stock experienced a selloff, and it bottomed out in…
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One of the best ways to create consistent income (for a trader, anyway!) is to trade credit spreads. There is a lot of confusion around what spread trading is, so let’s demystify some of that. Credit spreads are generally low-risk As an options trader, I would like to know two things before I place a…
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Rate of change (def): The speed at which a variable changes during a specified period of time. When I am asked about advanced options trading strategies, I invariably discuss rate of change, as it can be a powerful predictor of future momentum. As we all know, it is difficult to predict a top or bottom, but…
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Options Trading Webinar: The Art Of Taking Profits One of our favorite sayings in the Explosive Options chat room is, “We are in the moving business, not the storage business!” While that might seem obvious – and an easy mantra to follow – taking profits can be really hard. In fact, it’s very much tied…
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The Intercontinental Exchange (NYSE: ICE) is an American network of exchanges and clearing houses for financial and commodity markets. It has been gobbling up companies for years, and a couple of years ago, they managed to snag their crown jewel, the prized New York Stock Exchange. The ICE now provides a full array of services…
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As if on cue, the level of market noise is starting to rise. We are right near all time highs, so this really doesn’t come as surprise. Here’s a look at what the pundits are saying about the markets – and what’s really going on. “The market rally will end soon!” As we saw markets…
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Options Trading Webinar: How To Get Out Of A Trading Slump Options trading is as much about psychology as it is about market knowledge, chart analysis, and reading indicators. Unfortunately, trading can really mess with your mindset, and when you get in a slump, it can be hard to get out. Worse, you can fall into…
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Michael Kors has been on a roller coaster ride since the end of April, but this summer has been good for the stock. After a catastrophic dip in May, it appears poised to move higher – perhaps much higher. As you can see on the chart, the stock broke a downtrend line in early June…
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