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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0 Q&A from April 13th Scotia iTrade Webinar

Q: I am interested in learning which charting software tools the market guys use/recommend.
A: Sean, we keep our charts pretty simple. We use candlesticks with a 50 and 200 Day SMA, sometimes we add (20 day). Then we add volume, these are all available through Scotia iTrade.

Q: What is gap risk? is that when the open price next day is lower than your stop loss price?
A: Yes, correct. And in some cases, substantially lower esp if very bad news is given out after market close. A stop will NOT protect you in that case. A put option will.
Q: Does the Cash secured put strategy imply that if you sell the put, you have to have the cash in your account to pay for it if it is put on to you?
A: Yes, “cash secured” means you put up the cash. It stay in your account but it is held back.
Q: So it is a matter of personal perception as to where the stock is heading?
A: Yes Vicki. Covered calls are best suited for a slightly bullish to neutral markets. CC are not suitable for Bear markets (a market going down).  Cash secured puts are also suitable for Bull Markets.

Q: Do all ETFs go in the opposite direction of the stock they represent?
A: No, most trade in sympathy versus opposite. There are a growing number of inverse and leveraged ETFs. Be sure to order the ETF or read online the prospectus for any ETF you are not familiar with. Over 1100 now…