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Options Oracle: 10/09/15

In this market, the name of the game is ROI. As option traders we can make money when the market goes up as well as when the market goes down and if you know how to trade credit spreads you don’t have to expose yourself to a lot of risk. In fact, this spread is […]

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Options Oracle: 10/02/15

As you can see from the chart, BP has now filled a gap on the upside. Now that this gap has filled, there is an 80% chance that the stock will drop to fill the gap on the downside. We already own the Jan 2017 28 Calls so what we are going to do is […]

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Options Oracle: 09/24/15

As you can see from the candle chart, above, we closed with a bullish engulfing pattern while closing slightly above the triangle pattern. The increase in volume tells us the buyers are moving in. Selling a credit put spread is a bullish position, which means we will still have to manage risk to the downside.

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Options Oracle: Expiration Week Alert: 09/15/15

This Friday marks expiration day for the September option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Diamonds (DIA), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA),PowerShares US Dollar Bearish Fund (UDN), iShares Silver Trust (SLV), Barrick Gold Corp. (ABX), Twitter Inc. (TWTR), […]

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Options Oracle: 09/09/15

Tesla Motors (TSLA) has been in an upward trend for a good long time, but recently the stock has formed a double top formation, which, I believe, will hold as resistance until after the October expiration.

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Options Oracle: 09/03/15

The oil stocks have taken quite a beating over the past couple of month but are now showing signs of a bottom. Today, BP is bouncing off of a 20-year support level after a hammer pattern showed up on the charts yesterday.

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Options Oracle: 08/27/15

There’s a lot going on in the currency markets this week and China seems to be the cause for all of the volatility. Traders who focus on the Forex markets mainly follow technical charts to make their decisions because there is just too much fundamental data to analyze at any given time.

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Options Oracle: Expiration Week Alert: 08/17/15

This Friday marks expiration day for the August 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), Chipotle Mexican Grill (CMG), PowerShares US Dollar Bearish Fund (UDN), iShares Silver Trust (SLV), […]

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Options Oracle: 08/14/15

When I look at a chart, the first thing I do is scan the price action to see if there are any recognizable patterns. As you can see from this one-year, daily candle chart of AMZN, there is a pattern of upside gaps that are followed by fairly long trading channels that have lasted about […]

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Options Oracle: 08/07/15

As you can see from the 3-year weekly chart of Google, the stock rallied quite a bit in 4-weeks ago and just after a bullish engulfing showed up on the chart. This week, the stock is showing a long shadow above the candle, which suggests that the sellers are starting to move into the stock.

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