The Market Guys

This is a straightforward leap position where we are going long the calls because of the bullish engulfing pattern found on the weekly charts. This engulfing pattern has also formed on a major role reversal support level that was drawn from the 20-year monthly candle chart of the stock.

This is a weekly candle chart of the Dow Jones Industrial Average ETF (DIA). We have seen some crazy price fluctuations over the past couple of weeks and from the look of the candles on this chart I think we could see a lot more volatility ahead. This chart represents three years of price history, most of which […]

The Silver Markets have been following the technical signals very well lately and now that SLV is at a key support level, I think this is the time to get in. Our goal is to buy the January 2017 leaps, at the $10 strike price, and hold them. While we are holding these leaps I will go back […]

GOOG has seen a nice rally over the past 2 weeks but the inverted hammer candle tells me the stock may be ready to pull back and fill the gap. We are selling an out-ofthe- money credit call spread for $1.60 in order to stay out of the way should the stock decide to move a little bit […]

The Oil Markets are looking more bullish lately and this credit put spread will give us an opportunity to make about 20% in about 7 weeks. If the stock stays over $28 we will make money. The good thing for us is that the gap around $28.50 will act as support. I’ve been tracking gaps for more than […]

As you can see from the chart, Amazon has a strong history of gapping to the upside. You may also notice that after the gaps have formed, the stock generally stays in a sideways channel before making another attempt to rally. The dotted lines represent the range that I think that stock you trade in […]

This Friday marks expiration day for the October option chain. We are currently holding positions in the following companies; Gold ETF (GLD), The Traveler’s Companies, Inc. (TRV), Oil Services ETF (OIH), Apple Inc. (AAPL), Alibaba Group (BABA), iShares Silver Trust (SLV), Barrick Gold Corp. (ABX), Twitter Inc. (TWTR), BP PLC SPONS ADR (BP), Tesla Motors […]

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 […]

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 […]

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.