What Exactly is Option Trading?

By | Butterfly spread, Earnings, Investment Strategy, Option Expiration, Option Trading, Option Trading Strategy, Past Performance, US Market | No Comments

A Fascinating Friday ! That’s how I can think about Market’s action on Friday. Option trading is not only about attending a seminar, do some paper trades, get some winning trades and the stage is set. It is also about constantly evolving your own trading style and continue to sharpen your saw. With this post I hope you pick up one or two important nuggets that might add value to your trading style, so pls…

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This Market Requires Caution

By | General, US Market | 4 Comments

Dow Above 11,000 (.DJI), S&P500(.INX) above 1,200, Nasdaq-100 (.NDX) above 2000, Russell 2000 above 700; no resting just plain simple advance for the past 6wks that too when markets have been continuously in a overbought state; Buying interest was intense and demand was even stronger on the NASDAQ, which probably recorded 90% Up Volume of total Up/Down Volume, qualifying as 90% Up Day. Wow, what a rally! To me it seems more like panic buying…

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Outperformance Continues at OPNewsletter

By | OP Newsletter, Option Trading, Past Performance, US Market | No Comments

When compared with broader markets, Feb was an excellent month for OPNewsletter coupled with a few good learnings (kinda reinforcement, been there done that, but forget that). Overall, OPNewsletter for Feb closed up +5.6% x-commissions and +2.6% including commissions. Capital preservtion and thus allocation was higher priority vs missing an opportunity. These results doesn’t include the speculative directional trade which were shared here (only OPN subscribers can see this thread) and here at my profile…

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Outperformance : OPNewsletter Feb’09 +5.85%(Open)

By | OP Newsletter, Past Performance | No Comments

An excellent month for OPNewsletter so far. Overall, OPNewsletter is up +8.87% x-commissions and +5.85% including commissions. We didn’t have to make any major adjustments to our portfolios except one which rolled partially to next month. We closed one portfolio for +17.17% gains and except any major disastrous events on Tuesday market open, remainder portfolios stands to gain good theta decay over the long weekend. This is what OPN wants, portfolios to be as boring…

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OPNewsletter (Feb’09) : +2.78% (X-commissions) and +0.1% (/w Comissions)

By | OP Newsletter, Option Trading, Past Performance, Trade Ideas, US Market | No Comments

Such is the bear market, it leaves no one. Those who thought that major price indexes had successfully tested the Nov’08 market lows and that move December onwards marked a new primary bull market, were taken by surprise and Jan closed on a negative note. Dow closing almost 9% down for the month and other indices almost in the same range. I have been saying this since Nov’07 and will repeat here again “In bear…

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Equity Option Expiration and Pin Opportunities

By | Intraday Trading, Trade Ideas | One Comment

Today is a special day, a day that occurs only once a month offering good opportunities for intra day trading. Today is Aug’08 option expiration Friday. Before I proceed to talk about opportunities, pls note that the threshold for automatic exercise of stock-settled in-the-money options is $.01. Long equity options in the money by $.01 or more will be automatically exercised. Please monitor all your expiring positions and check with your broker for if you…

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