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 Webinar Q & A Part 3 of 3

Jonathan A. asks:

Q: When I want to purchase stock on etrade the cost is 5.69 a share, but the ask price is 5.70, what is the ask price?

A: There are three prices that are posted on your trading window that traders look at the most. The Bid Price, the Ask Price and the Last Price. The last price is simply the most recent price that the stock was traded at. The bid price is the highest price the buyers are willing to pay for the stock at that moment in time and the ask price is the lowest price the sellers are willing to sell at. Therefore If you are a buyer who wants to buy a stock at the market, you would have to make a trade with a seller who is willing to sell you their stock at their offering price. If you decided to sell stock, you would in turn make a trade with someone who is willing to buy your stock at their highest bid price. Remember it takes two sides to make a trade and just like real estate there is a price the seller is asking and many times the buyer of a property will submit a lower price than what the seller is asking in hopes that the seller will move to them in order to complete the transaction. The same principle applies to the stock market.

Ronald C. asks:

Q: How solid are the energy stocks in this new market in your opinion?

A: Energy stocks are, in our opinion, a great place to be if you are a trader, especially if you are a swing trader who is looking to capture profits within a 3 week to 3 month window. There is enough volatility there to exploit the technical signals and as a result of this volatility many opportunities open up for the option traders. There is a good book out now entitled, ‘Game Over’ written by Dr. Stephan Leeb. This book may give you a completely different outlook with regard to the energy sector whether you are a trader or investor. According to Dr. Leeb, our world is running out of energy and it’s the perfect time to create great wealth once you understand how to position yourself in the energy stocks.

Link to ‘Game Over” by Stephan Leeb