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Options Oracle: Expiration Week Alert: 06/17/15

This Friday marks expiration day for the June option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Netflix (NFLX), Diamonds (DIA), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA), Google, Inc. (GOOG), Baidu, Inc. (BIDU), SPDR S&P 500 ETF (SPY), and Tesla Motors, […]

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Options Oracle: 06/11/15

Credit call spreads are one of my favorite ways to trade in a bear market. If you lookat the chart of Tesla Motors (TSLA) you will see that the price reached a key level of resistance and the volume is dropping as the price has been moving higher. This is the first bearish signal.

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Options Oracle: 06/04/15

Credit call spreads are one of my favorite ways to trade in a bear market. If you look at the chart of the S&P 500 ETF you will see that the price has broken out below the bottom triangle line on high volume. This tells us that the sellers are starting to take over.

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Options Oracle: 05/28/15

Gaps above the market, hammer candles, and spinning tops are just a few of the things I look for when I’m shopping for a buy candidate. In this case, we have all three of these signs as GLD starts to make a turn higher just three days after the last gap was formed.

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Options Oracle: 05/21/15

Selling vertical credit put spreads is a bullish position and as you can see from the chart above, Baidu is showing a bullish engulfing pattern as the price is bouncing off of a key role reversal support level. The other bullish confirmation is the fact that the volume has been dropping as the stock has […]

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Options Oracle: Expiration Week Alert: 05/13/15

This Friday marks expiration day for the May option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Netflix (NFLX), Diamonds (DIA), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA) US Dollar Index Bullish Fund (UUP), and Google, Inc. (GOOG).

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Options Oracle: 05/07/15

As you can see from the weekly candle chart of Google, Inc. (GOOG), the price action has formed a classic, textbook, triangle pattern. As we have learned from our experience with trading triangles, once a stock breaks out above resistance, or below support, the price will generally continue in that direction for a while before […]

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Options Oracle: 05/01/15

Last week when we sold the June 480/500-call spread for $3.20 I expected that it would take until June expiration for us to realize our profits. Surprisingly enough the price dropped enough in one week for us to realize an 11% profit in a short period of time. Although I think this call spread will […]

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Options Oracle: 04/24/15

As you can see from the chart, Amazon has gapped up significantly after an earnings announcement the left investors feeling bullish. The company reported and “in-line loss” but the analysts are the ones who actually created the gap up when they reported that the sales numbers exceeded their expectations.

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Options Oracle: 04/16/15 (Special Alert)

This is a bearish position that will leave us with a profit should AZO close below 690 tomorrow (Firday Apr. 17th). Today the stock dropped as low as 686.14 but the calls still held a respectable premium. If the stock drops back down to test the 686 low tomorrow, you might want to unwind the […]

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