Stock Capitalist

Great artice by Chris Rowe. Based on this i’m lightening up a few of my bearish positions and hedging with some bullish ones.

“If you’re like me and just about every trader/investor I know in the market right now, you’ve been looking at one “false market signal” after another, one “whipsaw” after another, and one “head [...]

Last week, 11%of all stocks (net)on the New York Stock Exchange broke through support levels, putting them on sell signals.
I’ll make the importance of this event very simple.
All you have to understand is that, if a stock declines and breaks through a key level, the stock is much more likely to continue lower (because the [...]

Just a quick market caution… i received a report that as of yesterday morning the New York stock exchange bullish percent index has reversed to “O’s”, meaning that the sediment has changed from a “bullish” stance to a “bearish” stance and the bears have taken control of the market.
The last time this happened was in [...]

Excellent article on strategies for options that are expiring. I learned allot from this… since my trading style dictatesi always sell my options, way before expiry.
Excerpt:
“As you may know, the third Friday of every month is known as “expiration Friday.”
This weekend, expiring options “come off the board.” In anticipation of this, many investors and traders [...]

Have a Portfolio You Can Be Proud Ofcovers a good money management strategy,
and
Options: What Your Broker Doesn’t Want You to Knowtalks about a brokers best interest for keeping you in the dark about how options work.

visit www.playbigstocks.com often and check out the ‘option plays’, ’stock plays’ , and ‘ETF plays’ tabs. They have some good trading ideas there. I also follow them on twitter.
Here is their option play of the month to check out! I happen to agree with the bearish direction. Always be aware of the stops however.
Check it [...]

During the last several weeks, I have been showing readers of The Tycoon Report why it typically doesn’t make sense to trade any stock or ETF if they can trade the stock option or ETF option instead. Using options, you can take just a fraction of the risk while being in the position to make [...]

Here’s some advice that I have given that has made hundreds of people millions of dollars:
You probably shouldn’t ever trade a stock or Exchange-Traded Fund (ETF) again.
However, if you chose the right stock option or ETFoption to trade, you will be taking on a fraction of the risk that the stock/ETFtrader takes. And, at the [...]

Understanding delta could mean the difference between trading the right option contract that gives you low risk and high reward, or trading the wrong option contract that exposes you to unnecessary risk.
I’m actually updating a three-part series that I wrote in 2007, but even if you already read the series in the past, reading it [...]

With a conventional covered call strategy, you buy regular shares of a stock and then sell a call option against them, whose strike price is higher than the current share price. Your aim is that the shares will move higher and will get called away at expiration for a profit.
While this does happen, it doesnt [...]

“The mainstream press does not want you to pay attention to option strategies such as covered calls.
There is a conspiracy here – and its meant to keep you ignorant to a sector of the market that just doesnt fit in with the buy stocks and mutual funds mantra that makes Wall Street money.
You see, there [...]

Part 1 of this newsletter is very important, because it talks about the current market stance. I want to quote it here so no one misses the opinion. Chris’s stance has changed from intermediate term bearish – to intermediate term bullish – with the failure of the latest head and shoulder pattern on the S&P [...]

Given the current market environment, where an overbought market has begun to sell off and people are wondering how low the drop will be, I thought that it would be a good idea for me to revisit this three-part series that I wrote last year because of its high level of importance. I’ve improved it [...]

“One day, about 12 years ago, my clumsy cousin came into my office on the corner of Wall and Water Streets. Although his breath stunk of alcohol from a 3 martini lunch, I pretended I hadn’t noticed as I offered him a seat and some water. As he turned to pick up the water, he [...]

“You will reduce your risk if you take your 500 shares of ABC stock, sell them, and then buy five ABC call options that are a few strike prices in-the-money. (I”ll explain which expiration date the call options should have in a minute – it’s important.)
Example:
If ABC is at $60.00/ share, and you pull up [...]