day traded LABU, entered at 35.05 which was the 8 EMA on a 175 minute chart, sold at $36, quick easy money. smaller time frame charts are too good.
yea i dont even want to touch it, although i would be tempted to short it at 42, as that would be a double top.
Huge TICK spike this morning to 1481 which is the highest ive seen in a very long time If the ES cant get above 2055-2060 today, Im thinking that bears have a good shot at lower numbers early next week on the ES
Probably down next week as well then up the following week. YEN will see new highs next week. Maybe 106 I am thinking.
In the last four months or so, maybe six months, I've had 100% success with a trading strategy I was trying out. It doesn't make much money and relies on a bull market, but it does make 5% to 10% every six weeks or so, depending. Hopefully I'll be able to grab all the numbers tonight when I get home and share them with you all. I was rather surprised at how well it did, considering how some things went over the course of this test. Basically, all I did was buy in the money leaps (one to two years out) that had very little premium, like Walmart was one, and then sold the ATM option 45 days out. IE: The option with the most premium. Just to give an example I will make up some numbers. Buy Lexmark Jan 2018 $20 Leap for $13 (stock trading at around $32) sell near term $32 option for $1.25 and I'm in the position at $11.75 cost to me. Once the near term option expired, I sold it again. Collecting more premium. Worked out well. Again, I'll share exact numbers later. I suspect over the past four months or so, I've made around 10%.
Slow and steady, its a great system! Like you said, needs a bull market, but you can always switch to put side if you are brave!
I looked at the put side and I'm not sure it's possible. One of the conditions of an initial purchase was to be in the money from the beginning. What I mean is, if the spread on the leap was $12, then the total cost had to be under $12. For example, if I bought a $20 leap and the stock was trading at $32, then with the selling of the near term option, the cost has to be less than $12. I couldn't find any puts like that.
Kind of like a modified calendar spread...at least that's what it sounds like to me. I also think this requires level 4 trading ( which I have, but never used ). Another take would be: Lexmark trading at $32 Buy $32 strike leap , sell the front month $32 Works best if the stock is in an upward channel, and nearing the top of the channel, and getting ready to re-test the lower TL.
Yeah, it is a calendar spread just using leaps. And I was surprised at how well it all worked out. But can always use more testing. In a few weeks my last two will be closed out and I'll start all over again. But those two are looking pretty strong right now. One thing that annoys me about Think or Swim is you can never trust their calculations. Sometimes it looks like you're making money when you're losing money, and other times it looks like you're losing money when you're making money. The more complicated the transaction, the more likely his is to happen. I'd I've sold a strike and it expired worthless, them sell another front month strike, it can look like I'm losing money when I'm actually doing quite well. Mainly this is because ToS forgets about the money you already made on the closed position, even though that's actually part of the overall calculation in the longer term trade.
I think optionsxpress does the same thing, except it does give you correct info when placing the trade.
I really want you to be careful with that verizon. Weekly chart is breaking 2 weeks back lows. If your long from a good entry....cash out and wait for another setup If not just remember and look how many weeks it has gone up in a row. Again things can go forever but I dont want the 50 moving avg on the daily to be your reason to stay long. The weekly needs rest. In my humble opinion
We kinda do. The governments around the world are losing a ton of revenue off gas sales around the world due to low prices. This affects ability to pay down debt. It's a huge vacuum in the budget. Cheap gas hasn't really sparked the economy either. Hell, at 30MPG at 10k miles a year, $4.50 from $2.50 is only $600 difference a year. Less than my cable bill. It doesn't affect my macro view on spending at all. Yamana and Kinross on fire today. Yamana's move is pretty authoritative. Looks like gold had it's reset and is starting a new move up? yen is going higher, Dollar is playing with support.
