by Dan Gibby | Sep 7, 2016 | Uncategorized
In today’s Trading Newsletter, entitled Free Money for the Taking, What’s the Risk?, we discussed a Free Money trade in TAP. We explained that to us, this means the “reward-risk” of the trade is so compelling that it becomes a “no brainer” to place it. We will...
by Dan Gibby | Sep 1, 2016 | Uncategorized
We love selling overpriced puts (on liquid stocks with tight spreads) with bullish patterns. Many novice traders like to swing for the “home run” and buy out-of-the-money calls with unlimited potential (or even the equity itself) since the upside is unlimited. When...
by Dan Gibby | Sep 1, 2016 | Uncategorized
Monsanto (NYSE: MON) has been in takeover discussions for months. Recently, discussions swirled surrounding a PotashCorp (NYSE: POT) and Agrium (NYSE: AGU) merger, surging the entire sector higher. As technicians, we generally don’t care about the news, but rather a...
by Dan Gibby | Aug 23, 2016 | Uncategorized
As usual, Greg Capra posted in his morning Trading Newsletter the mixed market internals but bullish bias based on the chart patterns and resiliency of the broader markets failing to break lower. With this morning’s gap up, I started looking for put selling...
by Dan Gibby | Aug 16, 2016 | Uncategorized
On 8/3/16, we discussed our bullish bias on USO (the oil ETF) based on the compelling daily and weekly chart patterns. Below is the current daily chart of USO: Although at the time we discussed various types of bullish option trades, I entered a bull call spread. I...
by Dan Gibby | Aug 2, 2016 | Uncategorized
Each morning I look for new option trading ideas. I prefer selling premium; however, in such a low volatility environment, often the premium received is not worth the perceived risk assumed. In such cases, I either pass on the trade or buy in-the-money (ITM) credit...
