We’ve spent some time this month looking at various kinds of option spreads, with the bigger goal of learning the ins and outs of the strategy. It just so happens there are several different approaches to spread trading, each with their own pros and cons. Our first example was a bear put spread, though our more recent run-through was a...
We’ve spent some time this month looking at various kinds of option spreads, with the bigger goal of learning the ins and outs of the strategy. It just so happens there are several different approaches to spread trading, each with their own pros and cons. Our first example was a bear put spread, though our more recent run-through was a...
The stock market has a tendency to hit its bottom in late October, according to Ned Davis Research. Seasonality data shows that the stock market is about to exit its weakest period of the year. This dynamic could set the stock market up for a year-end rally, according to Ned Davis Research. By Matthew Fox, Business Insider Our Chart of...
With nothing more than a passing glance at last week’s losses it would be easy to conclude the worst about the market’s foreseeable future. Not only did the S&P 500 log its worst week in a month, the NASDAQ Composite closed below a key technical support level. And yet, it’s still too soon to presume the worst. There’s a good...
With nothing more than a passing glance at last week’s losses it would be easy to conclude the worst about the market’s foreseeable future. Not only did the S&P 500 log its worst week in a month, the NASDAQ Composite closed below a key technical support level. And yet, it’s still too soon to presume the worst. There’s a good...
For a second day in a row stocks lost a good deal of ground. And, in so doing, the market’s timbre took a turn for the worse. Both the S&P 500 and the NASDAQ Composite are now beneath an important short-term moving average line thanks to hints that the Federal Reserve may not be done with its rate hikes. There...
For a second day in a row stocks lost a good deal of ground. And, in so doing, the market’s timbre took a turn for the worse. Both the S&P 500 and the NASDAQ Composite are now beneath an important short-term moving average line thanks to hints that the Federal Reserve may not be done with its rate hikes. There...
Were it just one day, we might dismiss is. To see the stock market remain trapped between a narrow band of support and resistance for two days in a row though? That’s worth pointing out. Take a look. On Tuesday (and for the second consecutive trading day), the NASDAQ Composite briefly moved above its 50-day moving average line (purple) but...
Were it just one day, we might dismiss is. To see the stock market remain trapped between a narrow band of support and resistance for two days in a row though? That’s worth pointing out. Take a look. On Tuesday (and for the second consecutive trading day), the NASDAQ Composite briefly moved above its 50-day moving average line (purple) but...
Last week we started what’s going to be a lengthy-but-learnable lesson about option spreads. We didn’t mention this at the time, but the bearish trade we placed on General Electric (GE) was a bear put spread, or more accurately, as bear put debit spread. We were bearish on GE so we bought puts on the stock. We wanted to hedge...
