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Options Oracle: 11/22/13

AT&T is giving us enough technical information to go ahead and put on a long position. This is the first time we are trading in the 2016 option chain. The reason I’m going so far out is because the calls are cheap enough to allow us to do so. It also gives us a long […]

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Options Oracle: Expiration Week Alert 11/12/13

This Friday marks expiration day for the November option chain. We are currently holding positions in the following companies; The Volatility Index (VIX), Gold ETF (GLD), Diamonds Trust (DIA). Baidu, Inc. (BIDU), Apple Inc. (AAPL), iShares Silver Trust (SLV). Netflix, Inc. (NFLX), Amazon, Inc. (AMZN), and Dr. Pepper Snapple Group (DPS).

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Options Oracle: 11/08/13

If the timing of my report seems a little bit off, it’s because I’m currently in Europe, 6 hours ahead of the market. Your execution price might be different than what I’ve posted on page one of this report, but don’t worry, buy the puts anyway. The main point that I’d like to bring to […]

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Options Oracle: 10/31/13

This is the first time we are trading this stock. I originally wanted to buy leap puts on this company but there weren’t any available, so I went with the April expiration chain. This should still give us enough time to capture a profit without having to worry too much about time erosion. I do […]

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Options Oracle: 10/25/13

We’ve had great success trading Amazon in the past. The last time we took a position in AMZN we traded a diagonal put spread that lasted for over a year before we closed it out and it was one of the most profitable spreads in years. As you can see from the chart, the stock […]

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Options Oracle: Expiration Week Alert 10/16/13

This Friday marks expiration day for the October option chain. We are currently holding positions in the following companies; The Volatility Index (VIX), Gold ETF (GLD), Diamonds Trust (DIA). Baidu, Inc. (BIDU), Broadcom, Inc. (BRCM), Exxon Mobile (XOM), Apple Inc. (AAPL), iShares Silver Trust (SLV) and Netflix, Inc. (NFLX)

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Options Oracle: 10/11/13

We already have a credit call spread in our position for AAPL but the Bullish Engulfing pattern that showed up today got my attention. Last week we sold the 500/510 call spread in October which means we want the stock to stay below 500 by next Friday. The engulfing pattern is threatening that position so […]

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Options Oracle: 10/04/13

This is a “Bear Credit Call Spread” and as the name implies, this is a bearish strategy that allows us to take cash to our account when we sell the spread. The max profit for this particular trade is $1.70, which is the difference between the option we are selling less the cost of the […]

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Options Oracle: 09/25/13

When I look at the price of NFLX I can’t help but laugh. I’ve been trading stocks for over 30 years and it never ceases to amaze me to see how much risk investors are willing to take. The P/E for this stock is 385.71 with a forward-looking P/E of 86.77 and an income growth […]

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Options Oracle: Expiration Week Alert 09/18/13

In the nearby chart you will see a weekly candle chart of the Dow Jones Industrial Average ETF (Ticker: DIA). The price action is in the process of completing the final phase of a textbook head and shoulders pattern. The doji in the most recent candle represents the top of the right shoulder. This is […]

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