Options Trading

By Annie Pei, CNBC The chart of the financials has reached a very precarious level, according to TradingAnalysis.com founder Todd Gordon. Not only is the financials-tracking ETF (XLF) down about 1.5 percent year to date, but Gordon says its underperformance relative to tech stocks makes it among the most vulnerable in the event of a market pullback. Here's why: The XLF has fallen back down to the $26.50 level about four times this year. Gordon believes any weakness in the XLK could trickle down to financials, and push the XLF tumbling below that level. Furthermore, big bank names like J.P. Morgan, Wells Fargo and Bank of America have also fallen and are struggling to make a comeback. As a result, Gordon wants to buy the July 6 weekly 27.5-strike put and sell the July 6 weekly 26.5-strike put for a total of 34 cents, or $34 per options spread. The… more

By Annie Pei, CNBC The bond market is about to breathe a sigh of relief, TradingAnalysis.com founder Todd Gordon told CNBC's "Trading Nation" on Thursday. Looking at a chart of the ETF that tracks longer-term Treasurys, Gordon said the bond market is oversold as yields remain overbought. He expects a relief rally around the corner. Here's why: Gordon observes that... more

Want to know the secret to making a killing trading options? It's not quite what you think. Ok, maybe to some degree it's exactly what you think – making the right call on a stock or index at the right time. But, if you think there's an end-all, be-all turn-key approach that translates in big-time success, there isn't. The so-called... more

By Annie Pei, CNBC The S&P 500 is creeping closer to a key critical level that could mark a make-or-break moment for the rally, says TradingAnalysis.com founder Todd Gordon. Last week, Gordon predicted that based on the classic Elliott Wave theory, which posits that market trends move in a succession of waves that can be used to foresee the next... more

Want to make some good money using put options to be bullish on stocks? That wasn't a misprint. There's a way to use bearish instruments to make a bullish trade. We know, because the BigTrends Credit Spread Trader Service just booked an almost-100% gain on such a trade. A closer look is merited, if only because of the underlying chart... more

On Thursday, some not-entirely-surprising news surfaced. Hedge fund manager, once a star among the gain-seeking, risk-averse crowd, is on the defensive in a big way. His fund, Pershing Square, is seeing more and more cash-outs, as investors disappointed in his results simply want to take what's left of their money and do something else with it. The specifics: Once a... more

It's been said before but it bears repeating to traders now… often times it's the subtle things that can keep you out of trouble, and keep you in a trade you might otherwise want to bail out of. And as is usually the case, we make the point and leave you with plenty to think about by using a real-life... more