Category: Trade Ideas
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Trading FOMC Event Via Bearish Butterfly Spread
Arguably, the most important day of the year for the stock markets is right here. In about an hr, FOMC decision on interest rates will be announced. Almost everyone is expecting a 25bps rise! Whatever the FOMC decision maybe, there is a speculative Option trade opportunity on either side. Though, I am bearish, the similar strategy can…
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Is Rising Stock Price Good for “ALL” Stock Buyers? Warren Buffett Thinks Differently
I used to think that if I hold stocks in my portfolio and if the price continue to rise it’s good for my portfolio. It still holds true as I can sell it higher at anytime and pocket the gains (minus the taxes etc as applicable). However, when I was looking at Mr Buffett’s holding…
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A Broken Wing Butterfly for Trading Russell 2000
How do you trade downside, while still not losing much if the underlying continues to go up? This is a question I am often asked by many. There isn’t any better instrument than options, that I know of, to trade such a scenario. Albeit, the answer actually depends on how much do you understand options.…
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Scottish Referendum – Opportunities for Options Traders
Scotland’s independence will be determined by Scottish Referendum poll results on 19th. Polling stations in Scotland will be open from 7am until 10pm on Thursday 18 September for the public to cast their vote on independence. A key question before determining any trading opportunity is when will Scottish referendum result be announced? According to The…
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Tesla Motors Double Top or New Break Out?
Tesla Motors (TSLA) just hit another all time high and then quickly slipped below the previous 52 wks high. Points from such extremes are of importance. Is TSLA going to make a new high or making a double top? From technical charting perspective, there can be both bullish as well as bearish case. However, as…
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A Bullish Trade on Gold
Here is a quick bullish trade idea on gold. Gold has been trending downwards in 3 defined channel (2 in the pictures) (I am using channels as rough definition for 2 trending lines, not necessarily in a symmetry). However, during the past few days, Gold futures moved beyond the short-term downward trending channel. So what’s next? The first…
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A Bearish Broken Wing Butterfly on Russell 2000 RUT
The Jackson hole 2012 surprise is over. You may want to either read numerous websites to find out what Chairman Ben thinks (as per their conclusions) or read the speech text yourself to draw your own conclusions. As of this writing, markets are rallying (though pulled back from the intraday high). For now, at least, Russell 2000…
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Earnings Preview Linkedin LNKD
Linkedin Corporation (LNKD) is set to report its highly anticipated results today i.e. Aug 02 after the market close. In the social media/network landscape, Facebook (FB) and Zynga (ZNGA) announced poor results while Yelp (YELP) delivered beyond analysts’ expectations. Linkedin will therefore be watched with great interest. It competes with Monster (MWW) in the recruitment services…
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OPN Extra on Chipotle Mexican Grill CMG
Here is what I mentioned in the OPNExtra section on CMG, before markets opened- CMG will provide some good day trading opportunities. As of this writing the stock is down $77 or almost 20%. I was earlier thinking that $352 will be a good support, but that has already been taken out in the pre-markets.…