Category: Option Trading Strategy
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This is how you trade Market Uncertainty
Valeant Pharmaceuticals Intl Inc (VRX) dropped over 50% on Tuesday trigerring billions in losses for Hedge funds including the famed investor Mr Bill Ackman of Pershing Square. Is there a way you could have profited while big funds lost billions? Straddle spread is one such strategy that can be used in such instances.
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Bear Vertical Spread Explained
What is a Vertical Spread? We explained this at great length in the previous article using an example of Bullish Vertical Spread. We explained all the basics of vertical spread, how to structure it, how to analyze its risk reward profile and how to interpret profit & loss of a bullish vertical spread. This article is…
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Don’t make these costly mistakes in the current market
Russell 2000 (RUT) just crossed 1,000, the highest point ever for RUT; even surpassing the dot com bubble, the credit bubble and so on. S&P is cruising every day higher. Dow is making all time high almost every day. Nikkei is up almost +80% since Abenomics started spreading its wings in Nov’12. Advisors’ bullish sentiments are…
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How Can You Trade AAPL WWDC Next Week?
Apple (AAPL) World Wide Developers Conference (WWDC) for 2012 is scheduled for Jun 11-15 in San Francisco. This is probably the most followed, most awaited developer’s conference in the world and there is plenty of excitement already. The opportunity to benefit from such an event exists not only for the developers but also for Option…
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Protect Your Portfolio Before AAPL Falls Further
Apple (AAPL) closed below 50dma level again. Apple has pulled back almost $53 from the high since latest earning announcement. When a company announces earnings that almost doubled smashing even the most bullish expectations and the stock was already selling well below the average P/E ratio of the market, how can it continue to fall…
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Trading Monster Beverage’s Boom And Bust, All In A Day
Monster Beverage Corp (MNST) recently traded in a very volatile manner. Just before lunch on April 30th, MNST spiked sharply due to an M&A rumour that The Coca-Cola Company (KO) was in talks to buy Monster. As a result MNST spiked almost +30% to $83.96 from ~ $64 Later, for several hours it then traded…
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Will You Trade Apple Earnings Like Warren Buffett Traded Burlington Northern?
Apple (AAPL) is scheduled to report earnings on April 24th. I have already shared some interesting things about this quarter that you may want to read before playing Apple earnings (Please read to get on-board). So, assuming you want to trade AAPL earnings, you need to answer following (for this earning announcement only) – Are…
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OPNewsletter Jan 2012 up +1.8% (Open)
So far, OPNewsletter is experiencing a great start to a new year by gaining +2.6% during the first trading week of the year to close at +1.81% from -0.81% last week. So far we have invested almost +60% of the capital and are sitting on 40% cash that we’ll start using shortly for other portfolios. …
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A Bullish Trade on FFIV
Ever since F5 Networks (FFIV) announced earnings recently, it has been in a preciptous fall hitting recent low around $92. Often, we are faced with the situations where we would like to play swing trades but we also don’t want to take unnecessary risk. Usually option traders play a swing trade either via selling call/puts…
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OPNewsletter Jun’11 up +10% (Open), Jul’11 up +1.7% (Open)
Costco (COST) is down almost $5 since I last shared a FREE trade idea together with a simple trading strategy, those COST puts, easily hit the profit target identified in the post and if measured point to point, are now up +70%. NFLX bearish trade resulted into nice gains within a day of my posting…