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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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Options Oracle: 09/13/13

This new position in SLV is a short-term strategy that will allow us to take a quick profit as the stock moves back up to the 20-day moving average. A one-dollar rally in SLV would result in a $.60 price gain on the option, giving us a return of 11.76%. I am not looking to […]

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Options Oracle: 09/07/13

Selling this credit put spread gives you a chance to collect a cash premium that will be applied to the purchase of Geron Shares (Ticker: GERN). Our initial risk will be in the Apple position, but should the stock stay above $470 between now and expiration day, we will be long GERN risk free. The […]

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Options Oracle: 08/27/13

Barrick Gold has reached a point of resistance, which was a short-term target area for us. You can also see that there is a bearish engulfing pattern that has showed up on higher volume. This tells us the sellers are moving in to take profits. My first thought was to sell at-the-money calls against the […]

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Options Oracle: 08/23/13

All of the technical signals are telling us to buy XOM right now. We have a hammer pattern at the end of a down leg, there are four consecutive red candles in a row that tell us there’s a high probability of a green candle on the horizon (stale red light), and we are at […]

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Options Oracle: Expiration Week Alert 08/14/13

This Friday marks expiration day for the August option chain. We are currently holding positions in the following companies; AMEX SPDR Energy Select Index (XLE), The Volatility Index (VIX), Gold ETF (GLD), Carnival Corp. (CCL), Cirrus Logic (CRUS), Diamonds Trust (DIA), Barrick Gold (ABX), Baidu Corp.(BIDU), Catapillar, Inc. (CAT) and Broadcom, Inc. (BRCM).

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Options Oracle: 08/07/13

Broadcom Corp. gapped down three times in the month of July with the most recent gap identified as the exhaustion gap. An exhaustion gap signals the end of a move. These types of gaps are associated with a straight-line advance or decline. In this case it shows up at the end of a straight-line sell […]

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Options Oracle: 07/31/13

It’s been a long time since I last spoke about “The Golden Buy/Write” but I couldn’t help but notice this one today. The term “Golden Buy/Write” is something that I came up with years ago while I was doing a seminar in Stockholm. The investors there wanted to know if there was a way that […]

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Options Oracle: 07/25/13

As you can see from today’s candle chart of BIDU, the stock has gapped up but has stopped right at the major resistance level taken from the highs on August 17th, 2012. A credit call spread is a bearish strategy that allows us to take in a cash credit to our account. The most we […]

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