UPDATE: Closing S&P 500 put options for 50% gain
Last Thursday, November 5, I discussed the morbidly overbought readings of the benchmark S&P 500 index and laid out a trade to buy put options for a mean-reversion trade lower. Specifically I said that I was buying January 2016, $211 strike put options on the popular and very liquid S&P 500 ETF (SPY:arcx) for $6 […]
Serge talks year-end rally odds and thin market breadth on BNN
Will stocks see a further melt-up into year-end? The big question from here on into year-end is whether fund manager performance anxiety will win the tug of war, i.e. them having to buy stocks to chase the rally, or whether the awful market breadth that is backed by economic gravity (growth data continues to slow) […]
Beware of chasing European indices higher
Euro Stoxx 50 is up 10% over the past three weeks Rally has pushed the Euro Stoxx 50 back toward defined line of resistance Active investors would be wise to adapt and “buy the dips, fade the rips” Weeks-long rally in the Dax has taken it back to 50-day MA and line of resistance Traders […]
Two trading strategies for Facebook earnings $FB
Facebook, reporting on November 4, is one of the few companies with a growth story A higher share price comes with a worse risk/reward ratio Let’s look at how to possible trade options around Facebook’s earnings Social media giant Facebook (FB) is scheduled to report its latest quarterly results next week on Wednesday, November 4. The […]
The Steady Trader interview – #PreMarket Prep for October 12, 2015
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Use options to play Wal-Mart stock after the sharp drop
Shares of Wal-Mart Stores Inc (WMT) shed 10% on Wednesday on the back of the company lowering its sales outlook for the current year. The stock increasingly looks deeply oversold and with options implied volatility high investors could use options to make a calculated trade. [youtube id=”XFJrmRDXXGQ”]
Three big-name stocks, one very bullish pattern
With the third-quarter earnings season kicking into high gear this week, I spotted three major stocks with eerily similar technical patterns of the bullish variety. The three stocks are none other than Facebook Inc (FB), Amazon.com Inc (AMZN), and Alphabet Inc, i.e. Google (GOOGL). [youtube id=”MlR9oW7_Q2c”]
Why AAPL stock is too heavy to tackle right now
Apple Inc. (NASDAQ:AAPL) shares closed on Monday about 16% off their year-to-date highs — not a major drop in the bigger picture, but investor sentiment (according to my proprietary readings) remains worryingly high. To be sure, even with Monday’s 2.6% drop in the S&P 500, AAPL stock “only” shed 2%. Ultimately, however, the dynamics of Apple stock’s […]
Shorting the Nasdaq 100
Serger Berger is looking to sell short the Nasdaq 100 after the index Friday saw a bearish reversal that took bulls by surprise. Going into Friday, the overnight markets seemed upbeat after rather hawkish comments from US Federal Reserve Chair Janet Yellen, Berger says. But by the time cash markets opened on Friday, the mood […]
After the Fed we get quadruple witching options expiration…
A possible Fed rate hike is, of course, looming over markets this week and many investors will be bracing for turbulence. Seasoned equity trader Serge Berger talks us through his trading strategies ahead of a potential hike and explains why the end of this week will be even trickier. So called ‘Freaky’ Friday will be […]