Options Trading Strategy
The Green Triangle Cheat Code
When it comes to finding those perfect entry and exit points in trading, I’ve got a strategy I call the “green triangle.” Imagine it as the ultimate trading cheat code, where each side of the triangle needs to light up green before you make your move. The key to unlocking this? The 2-line crossover method […]
How To Short Stocks For Beginners
If you’re looking to take advantage of declining stock prices, then this strategy might just be the one for you. However, before diving into the world of short selling, you need to understand the key factors that can make or break your success. From selecting stocks with high short interest to carefully considering market sentiment and technical […]
Crude Oil Is About To Surprise A Lot Of People
Crude oil is about to surprise a lot of people… The energy trade has been one of the most consistent plays in the market over the last few months. But my analysis is quite clear on the matter: start looking for an exit now. Here’s what’s been going on in the oil markets… This post originally […]
Mastering Break And Retest: Catching Big Moves
Are you looking to get ahead in the stock and options markets? Do you want a simple way to take advantage of market movements? Using the break and retest strategy could be exactly what you’re looking for. It’s an effective strategy that can give traders an edge but it requires knowledge about how these types […]
Three Rules For Trading During A Bear Market
Novice traders treat bull and bear markets the same. “I just trade like a bull market in reverse!” It’s 100% not that simple. Bull markets tend to move steadily up… bear markets are incredibly volatile. That’s not to say you can’t make money during this crazy market. You simply need some rules of thumb to […]
To Hedge Your Portfolio For Free
An intriguing way to hedge your portfolio’s downside risk for essentially no cost is by using a put spread collar. A large zero-cost put spread collar was placed last week on the SPDR S&P 500 ETF (SPY). The trader sold calls and used the proceeds to purchase a put spread. The position will give a […]
This Trade Can Make Money Whether A Stock Goes Up Or Down
One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor. An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss. At the […]
Selling Puts – A Simple Options Strategy
Selling puts is a neutral to bullish strategy. Traders tend to overcomplicate things. This is especially true with options trading where puts and calls can be bought and sold in seemingly endless combinations with cute names like calendars, diagonals, butterflies, iron condors, ducks, lizards, and so on. While more complicated strategies have their place, are […]
Stock Replacement, A Smart Options Strategy For Traders
In 2018, I wrote about a stock replacement strategy when the market was hitting an all-time high. With nothing but clear skies, no visible ‘overhead’ on the charts, and an economy seemingly firing on all cylinders, investors might have rightly viewed advice to temper their bullishness with skepticism. However, that environment and attitude seem worlds […]
How To Use A ‘Collar’ To Protect Your Portfolio Against Losses
How can we protect our portfolio against losses when stocks are in a correction? Or even if stocks are not currently in a correction? There are many schools of thought on that. One relatively straightforward way to protect open stock positions is to buy Put protection. Puts are option contracts that have an inverse correlation […]
Look For This Stock To Move Higher In The Short-Term
International Business Machines Corporation (NYSE: IBM) seems to be gearing up for a surge as per its latest charts. International Business Machines Corporation provides integrated solutions and services worldwide. Its Cloud & Cognitive Software segment offers software for vertical and domain-specific solutions in various application areas; customer information control system and storage, and analytics and integration […]
This Growth Stock Is A Buy On Every Dip
Investors in the artificial intelligence (AI) and chip darling Nvidia (NASDAQ:NVDA) stock saw mouth-watering returns in 2021. Over the past 12 months, NVDA stock has returned around 82%. By comparison, the PHLX Semiconductor Sector Index returned a little more than 18%. In November 2021, Nvidia shares hit a record high of $346.47. Yet, since then, it has […]
This Stock Just Broke Out
Mondelez International, Inc. (NASDAQ: MDLZ) seems to be getting ready for a price bump as per the latest charts. Mondelēz, is an American multinational confectionery, food, holding and beverage, and snack food company based in Chicago, Illinois. Bullish Indications #1 Consolidation Area Breakout: The daily chart shows that the stock was trading within a consolidation […]
One Way To Double Your Dividend From Corporate Bonds
Corporate bonds are near all-time highs as yield seekers are looking to improve on low yields from government bonds. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is one of the most popular vehicles for getting exposure to high quality corporate bonds. However, the dividend yield is only 2.3% for LQD, and the […]
This Stock Broke Out And Looks Ready For A Surge
Mosaic Co (NYSE: MOS) seems to be gearing up for a surge as per its latest charts. Mosaic Co produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. Bullish Indications #1 Symmetrical Triangle Pattern Breakout: The daily chart shows that […]
Trade of the Week: TIP
Last week, a highly unusual amount of options action occurred in iShares TIPS Bond ETF (TIP). TIP is a popular ETF for investing in TIPS bonds, which are treasury bonds that are indexed to inflation. In other words, as inflation goes up, these bonds go up. While the ETF has $38 billion in assets, it […]
The Unraveling In Pinterest Stock Isn’t Done, So Here’s The Trade To Make
This week’s bounce is likely a ruse — here’s what to do with PINS stock Remember when Pinterest (NYSE:PINS) cashed in on the euphoria surrounding stay-at-home stocks last year? It joined Zoom Video Communications (NASDAQ:ZM), Teladoc Health (NYSE:TDOC), Peloton Interactive (NASDAQ:PTON), DocuSign (NASDAQ:DOCU), and many others on a rocket ship ride for the ages. If you thought the meteoric rise was eye-popping, you […]
How To Generate Cash Flow From Holding Volatile Small Caps
Market volatility has been at its highest since February. Small cap stocks have been particularly volatile lately. Keep in mind, small caps tend to get sold early when there is a flight to quality. The popular small cap stock ETF, iShares Russell 2000 ETF (IWM) dropped from a 52-week high near $245 all the way […]
Stocks Are Plunging – Is Gold The Right Hedge?
When the stock market does its best impression of a swan dive, it tends to come from an unexpected catalyst. It’s generally not something about interest rates or corporate earnings or jobless numbers. Those factors matter over time, but they don’t usually cause sudden, severe moves in the market. No, very large selloffs often come […]
Will Stocks Continue To Rally Despite The Coronavirus Scare?
The stock market can be a crazy place. The unpredictability of the financial markets is what makes them so exciting and challenging for traders (and investors). While the long-term direction of stocks has always been up, there are definitely significant periods of volatility over shorter time frames. For instance, this year we’ve already had a […]
What’s In Store For Chipmakers In 2020?
2019 is at an end, and it was undoubtedly a great year for stocks. The S&P 500 was up over 28% for the year. However, semiconductor companies had an even better year. VanEck Vectors Semiconductor ETF (SMH) was up nearly 62% over the same period. Granted, SMH did plunge sharply at the end of 2018, so it had […]
