Posted by on July 28, 2015

Trading Elevated Volatility During Earnings Season

I wrote this blog last Thursday at noon, before Amazon’s surprise earnings announcement and subsequent spike in the pre-market the following morning. Now, what is interesting is we can look back on the actual results and Monday Morning Quarterback my premise. (Spoiler alert: I couldn’t have been more wrong with the magnitude of the price…  Continue Reading
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Posted by on July 27, 2015

Monday Morning Musings

What a difference a week makes! Last Monday investors were coming off of a Tech inspired rally which put the Nasdaq composite at an all-time record on the back of a massive positive earnings move by Google. To me, it felt like investors were a bit giddy waiting on Apple earnings Monday. Apple’s silence on…  Continue Reading
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Posted by on July 20, 2015

Monday Morning Musings

Last week, the major market averages showed some sustained positive price movement. The S&P 500 index up almost 2.5%, the Russell small cap index lagged a bit but still posted a weekly gain of 1.2%, but the star of the show was clearly technology! The Nasdaq Composite rose almost 1% Friday to close the week…  Continue Reading
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Posted by on July 15, 2015

When can a Credit Call Spread cost you more than the difference between the strikes? Watch out for dividends!

I have seen pretty experienced option traders get caught in a losing trade thinking that a credit call spread can never be worth more than the difference between the short and long strike prices. Credit Call vertical trades are typically taught as limited reward limited risk trades, where the difference between strike prices is the…  Continue Reading
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Posted by on July 13, 2015

Monday Morning Musings

A roller coaster is the best description for the price action last week as the combo of the Greek debt crisis and the bear market in China sent major averages sharply lower Monday and into Tuesday. However, this market has been nothing if not resilient. Dovish Fed minutes, a reversal in Chinese share prices, bolstered…  Continue Reading
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