There’s not much to it actually. Alerts are free to Premium Members but they are just Emails that come from our normal daily Member Chat from myself, Optrade or the Oxen Group. Opt and Oxen usually send out trade alerts but I tend to concentrate on things I consider important enough to send out in case someone is away from their computers or (Heaven forbid!) on some other site. One Alert I send out almost every morning are our daily level watches and then, if something big changes, I’ll send out another one but I don’t do it often as I don’t like to bother people with Emails. We have special feeds for members who want to have every comment sent to them anyway.
Usually I send out my first alert just after the bell so we can see what the market looks like at the open. Sometimes we see a good play, sometimes we don’t. Today looked uncertain so posted two possible DIA plays at 9:33 in Chat that were sent out on our Alert system (it’s just an Email!):
So that’s it. This comment from Member Chat gets converted into an Email and ends up in your in-box a few minutes later. On top are my normal level selections for the day with comments about what to look for. As I had mentioned in the morning post, I didn’t even feel it was possible to make it to our 10,300 levels so I didn’t even bother cluttering this post with them this morning. We looked a little weak so I was more concerned about the downside but we held our downsides like a champ and bounced back nicely.
In chat, we took quick profits on the $99 puts and my follow-up comments were:
9:37: "Boy, we can almost count on these morning sell-offs lately. EU funds I think so I still want that upside play."
9:56: ".95 was plenty for the puts. For me, that’s a .15 buffer to enter the longs, now .75 but I don’t want them unless they either get back to .70, (where I’ll risk 1x with 1x at .60 and 2x at .50) or back over 10,020 with a stop right there."
11:19: "Let’s watch that 10,058 line, we either get through it or it’s a good place to buy the DIA…
We don’t day trade a lot at PSW, EXCEPT during option expiration weeks so call it 12 times a year we turn into day-traders as the front-month premiums get low enough to make the trades interesting. The rest of the time, my usual motto is "I’m not a day trader but I’m certainly not adverse to taking profits in a day." Our goal with any option trade is to make a 20% profit and we put up at least 20 trade ideas almost every week so that’s over 1,000 opportunities a year to make 20% – that means when we do make it – getting back to cash and moving on is a wise strategy as there will certainly be something else to trade tomorrow.
During expiration weeks, we have a unique (if 12 times a year is considered unique) opportunity to gain tremendous leverage on trades that have good risk/reward ratios to hopefully give us a series of small, quick wins so our focus shifts away from the longer trades (and we are often waiting out the week before rolling our longer positions anyway) to zone in on these wonderful opportunities.
This is covered under our Strategy Section so I won’t rehash it here but I thought I’d use my new chart tools to try to illustrate what we’re doing by going over a few of today’s trades. As we do discuss in the strategy section, allocation of assets is key and no single trade should ever be more than 5% of your virtual portfolio and day trades should be more like 2% so, in a $100K virtual portfolio, these quick trades should be opened in blocks of $1,000 or $2,000 entries. Ideally, we want to be comfortable doubling down if the trade goes against us right off the bat (and we still believe in it).
Our first trade of the morning was a short on USO. At 9:42 I made a comment to Members: "Jan USO puts have little premium left (the $41 puts are $1.06 – .19 premium) and can be played as a mo trade but I’m in the Feb $39 puts, now $1.01, patiently waiting to make .50."
The January trade was, of course, the riskier trade but these plays aren’t taken in a vacuum. We had been discussing oil as overpriced for days and we were watching the global market,…
Yesterday we reminded those who fear the dreadful deflation ogre and its extreme monetary policy supporting fantasy that food inflation was in fact soaring. Of course, for those that do not eat Beef, Pork, Eggs, or Shrimp - everything's fine... except today we add yet another 'staple' to the extreme inflationary dilution of the average consumer's pocketbook... orange juice!
*ORANGE-JUICE FUTURES RISE AS MUCH AS 1.5% TO TWO-YEAR HIGH
When the US market opened, Japan's Nikkei had closed with a massive 3.01% gain and the EURO STOXX 50 was in rally mode, ultimately to log a 1.54% advance. The Federal Reserve had published better-than-forecast March Industrial Production data with a substantial upward revision to the February numbers. The S&P 500 popped at the open and rose in a couple of waves through the day to its 1.05% intraday high at the closing bell. This was the third day of gains and enough to put the index back in the green year-to-date but still 1.51% off its record closing high set ten sessions ago on April 2nd.
The yield on the 10-year note finished at 2.65%, up 1 bp from Friday's close and 5 bps off the 2014 low of 2.60%.
Here is a snapshot of the past five sessions.
Volume for today's advance was above slightly below its 50-day moving average. The c...
A roughly quarter of a million dollar play in the 17Apr’14 expiry $74 strike put options on Las Vegas Sands Corp (Ticker: LVS) caught our eye this morning, as just one full trading session remains in the life of these contracts in this holiday-shortened week. Shares in LVS are up more than 2.0% on the session at $74.90 just before 11:30 am ET and off an earlier session high of $75.44. Like many of the relative outperformers of 2014, shares in LVS have declined substantially since the beginning of March, down around 15% at its current level from a high of $88.28. Recent sessions have been volatile in this and other high-beta names, and perhaps this environment is just what the morning’s put trader is looking for ahead of expiration.
Albemarle Corporation (NYSE: ALB), a leading manufacturer of highly-engineered specialty chemicals, announced today that it has signed a definitive agreement to sell certain assets to SI Group, a leading global developer and manufacturer of chemical intermediates, specialty resins, and solutions. Included in the transaction are Albemarle's antioxidants and FDA-regulated ibuprofen and propofol businesses and assets, with manufacturing sites in Orangeburg, South Carolina and Jinshan, China; and Albemarle's antioxidant product lines. Certain applications and technical support capabilities in Shanghai, China and Baton Rouge, Louisiana will also be included in the transaction. Terms of the transaction were not disclosed.
Albemarle's President and CEO, Luke Kissam, said, "Thi...
Last week’s market performance was nasty again, especially for the Small-cap Growth style/cap, down 4%. Large-caps faired the best, losing only 2.7%. That’s ugly and today’s market seemed likely to be uglier today with escalating tensions over the weekend in Ukraine.
But once again, positive economic trumped the beating of the war drums. Retail Sales jumped up 1.1% over a projected 0.8% and last month’s tepid 0.3%, which was revised up to 0.7%. While autos led, sales were up solidly overall. Business inventories were about as expected with a positive tone. Citigroup (C) handily beat estimates to add to the morning’s surprises. As a result, the market was positive through most of the day, led by the DJI, up 0.91%, and the S&P 500, up 0.82%. NASDAQ had a less...
[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process.
The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...
Reminder: OpTrader is available to chat with Members, comments are found below each post.
This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).
We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options.
Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.
To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here...
Market Shadows Excelled – With a 1.36% Weekly Decline
In the land of the blind, the one-eyed man is King. Our Virtual Value Porfolio took on that role this week as we lost a modest 1.36% of our value while the DJIA, S&P 500 and Nasdaq Composite dropped from 2.35% - 3.10%.
We remain bullish despite the shaky end of week sentiment. Our original $100,000 now totals $145,058 including our 2.8% cash reserve.
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Ladies and Gentlemen, hobos and tramps,
Cross-eyed mosquitoes, and Bow-legged ants,
I come before you, To stand behind you,
To tell you something, I know nothing about.
And so the circus begins in Union Square, San Francisco for this weeks JP Morgan Healthcare Conference. Will the momentum from 2013, which carried the S&P Spider Biotech ETF to all time highs, carry on in 2014? The Biotech ETF beat the S&P by better than 3 points.
As I noted in my previous post, Biotechs Galore - IPOs and More, biotechs were rushing to IPOs so that venture capitalists could unwind their holdings (funds are usually 5-7 years), as well as take advantage of the opportune moment...
Note: The material presented in this commentary is provided for
informational purposes only and is based upon information that is
considered to be reliable. However, neither MaddJack Enterprises, LLC
d/b/a PhilStockWorld (PSW) nor its affiliates
warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.