Daily Option Trading Commentary

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Option Traders - Watch For A Deep Decline And An Intrday Reversal!

The market is in a bona fide decline that started last October. On a five year chart, a head and shoulders pattern has formed and the neckline has been broken. We now know that the March rally was nothing more than an oversold bounce. As the market reached a critical resistance level at SPY 144, it was slapped down in dramatic fashion. Since the middle of May, many support levels have been broken. Bulls stepped up to the plate in March once the double bottom had been formed at SPY 126. A few months ago, it looked like the Fed's…
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Options Trading Chart of the Week

Option Trading Article of the Week

Option Trading - How I Trade Options - Form An Opinion - Direction.

Posted by Pete Stolcers on July 8

You might be thinking, "What a crazy option trading blog. This guy is a dozen articles into the series and he hasn’t even mentioned puts or calls.” Today we get one step closer. We have the stock targeted, we’ve watched for relative strength/weakness and now we have to form an opinion. I dissect my opinion into the following categories: direction, magnitude, duration. To make money in this business, you have to be a directional trader! Run from the "guru" who will "teach" you how to make a fortune trading neutral strategies. Common sense should tell you that you can't run…

Stock Options Question of the Week

Do You Ever Pivot From Long Put Options To Long Call Options?

Posted by Pete Stolcers on July 4

Question Do you ever consider moving a stock from a bullish watchlist to a bearish watchlist without waiting for your scan to do it for you?

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