How to Generate Income from Your Stocks

June 4, 2010 // 52 minutes

The Market Guys will show you how you may be able to create income from your stocks with options.

Investing Education Day

July 29, 2010 // Chicago, IL

PIN PRESSURE INDICATOR™

Using Pin Pressure as a leading indicator for setting price targets

AJ Monte, Chief Market Strategist for the Market Guys, has written a paper for the Market Technicians Association on the Topic of Pin Pressure.

This document was grounded in research conducted by the University of Illinois showing how Option Trading Volume affected the price of the underlying stock in which the option contracts where traded.

From this paper, AJ has developed the Pin Pressure Indicator™ which is a calculation that computes the combined open interest traded at various strike prices and uses this data to determine price targets for individual stocks as we approach options expiration Friday.

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2 More Q&A from the Aug. 28th Webinar

Q: ET has excellent written material on conditional orders. However hearing about it from experts is much better -Kent J.

A: Thanks for the great comments Kent! That’s the great part of our partnership with E*Trade, CBOE, ISE, CME and others. We have many resources available including our podcasts, webinars, live events and the Oracle advisory service.

Q: Sometimes I fixed a stop price and my order was executed, but after that the price moved up. Are there rules to avoid this? -Cinthia T.

A: The key to avoiding this is to build your skills in identifying support and resistance properly. The more you learn about role reversals, moving average support and candlestick high/low pivots, the less you will see this occur. Having said that, there are times when it will still happen – you can’t avoid it altogether but you can minimize the frequency.

Q: How do we use the search function to find stocks? -Lynda L.

A: We use both the stock scanner on www.etrade.com as well as the Power E*Trade Pro Strategy Scanner. Please join us for our Stock Selection webinar to see these tools in action!

Q: Did you say earlier that you can do these types of orders in options as well? -Mike L.

A: Yes! Power E*Trade Pro allows for conditional and contingent orders for stocks, options and indices. For example, you can place the condition on the underlying stock and then set up the conditional order to execute the option. It’s a great way to enter and manage positions! For readers of The Options Oracle, this is a very powerful tool to open and close the Oracle trades.