Options Trading

By Rebecca Ungarino, CNBC Facebook's pain isn't over yet, according to one top technician who just noted a troubling development in the charts. Facebook shares continued a slide Tuesday in the wake of a security breach that the company revealed on Friday and said compromised around 50 million users' data. It was trading down 1.8 percent at around $159 a share late Tuesday morning. The skid has brought the stock's 2018 losses to 9.5 percent. The stock has been badly underperforming the broader market for quite some time, and the bottom isn't in yet, according to Craig Johnson, chief market technician at Piper Jaffray. "We've broken the up-trend support line that's been intact since 2013, and from my perspective, it looks like the shares are destined to come back and test that $150 level. I'd just note, that's the absolute performance. On a relative basis, Facebook shares have been underperforming… more

On Tuesday, the BigTrends Grand Slam Options advisory locked in a 58% gain on a call trade entered on Monday of last week. Namely, we bought into some Visa (V) September (monthly – 09/21) 148 calls (V 180921C148), paying an average of 99 cents, or $99 per contract. We sold the whole shebang on Tuesday of this week at $1.57,... more

By Rebecca Ungarino, CNBC After Amazon cracked through the $2,000-per-share milestone for the first time, TradingAnalysis.com's Todd Gordon is betting on an even bigger rally in coming weeks. "Amazon is in breakout mode here. I like the stock, it looks strong. I'll show you on the chart from a technical point of view that there is still room to run... more

Welcome to part-three of this primer on credit spreads, which looks at one of the recent winners from our Index Options Timer to service to not just illustrate how these kinds of trades work, but why they work and when you may want to use them over straight-up buying of calls and puts. And, congratulations! If you’ve not been overwhelmed... more

In part one of this two-parter look at the Index Option Timer’s recent winner on a put-credit spread on the S&P 500 ETF (SPY) – a neutral-to-bullish trade – we dissected what it was about the chart that prompted us to make what seemed like an unlikely trade. That is, we actually went semi-bullish on the market (using the SPY... more

On Monday of this week, the BigTrends Index Options Timer services closed out a big score on a short-term credit spread trade we made on the broad market… using the S&P 500 Index ETF (SPY) as our proxy. Namely, we sold — pocketed a 'credit' upfront — by selling the SPY August week 4 (08/24) 279 puts (SPY 180824P279) last... more

By Annie Pei, CNBC TradingAnalysis.com founder Todd Gordon says the financials are finally catching up to the market rally, and a breakdown in bonds may just bring about an even bigger rise for the big banks. "The overall market seems to have stabilized, the S&P is pressing the 2018 highs, and it looks like the financials are finally playing a... more