stock options
We have written about NetFlix (NFLX) quite a few times over the past year, and have shared our somewhat bullish outlook. This stock has had an epic fall from grace that all other growth stories will be compared to going forward. The question to ask is if the growth story is over or are we in Chapter 3 of a novel? Time will tell as this NetFlix story is filled… Read More
I have written countless times about the intervention in this market. How a retail trader can become brainwashed by the headline news, only to be blindsided by the 2-3%+ market squeeze ignited from some more can kicking by the powers that be.
One only need to look back to November 2011, to see the last time a floor was put into equities via the World Central Banks. This… Read More
How does that saying go? When it smells like shit, looks like shit, tastes like shit, and came out of an a^^hole… it probably is shit… right? Well yeah. So lets apply those adjectives to the world economy: little to no growth in developed economies, huge debt issues in europe, a slowing china economy, a U.S. fiscal cliff, along with political unrest and change in some of the emerging countries.… Read More
Did the title to this blog post get your attention? I hope it did. Fear is a powerful emotion that can cause irrational decisions by typically normal folks.
Fear is a distressing negative sensation induced by a perceived threat. It is a basic survival mechanism occurring in response to a specific stimulus, such as pain or the threat of danger.
The market in May… Read More
Hopefully as the ‘sheep’ retail traders/investors were changing the channel from CNBC during the last two weeks market ramp, they came upon a classic Seinfeld episode entitled “the Bizzaro Jerry”, where everything was the polar opposite… Up was down, right was left, and wrong was right. We wrote many times over the past week about the impending short-term bull market. How folks would be forced into equities, and… Read More
By 5pm Sunday when the Forex markets open, we should be able to assess the damage Greece has unleashed upon the financial world. World economic Armageddon is coming… Haven’t you read the papers or watched the news? The Greek vote is being compared to the most dire financial events in history. A win by the leftist party Syriza will ignite panic in equity markets on Monday. Who… Read More
FactSet Research Systems Inc. (FDS) reported some nice earnings this morning, but their Q4 outlook raised some concerns. The stock plummeted at the open to $93.53, an $11+ drop. We think sellers are over exaggerating the outlook and the stock will bounce. We spoke about it in our chat room pre-market, and looked for $100 calls as the strike with the highest reward and lowest risk. Time will… Read More
Who can forget the start of 2012 when Netflix (NFLX) went on a 6 day rampage. It was an option traders wet dream as the stock ran from $69 to $99.65 in 6 trading sessions. The Catalyst? Well thats a mystery. Was it the news that folks watched over 2 billion hours of Netflix videos over a 3 month span in the fourth quarter of 2011? Or maybe it was… Read More
CME Group (CME) is a stock that has been very kind to us over the years. At the start of 2012, we were able to position ourselves with some calls into earnings and banked some serious coin. Take a look at the charts below for the call. And this was what we were saying before the stock took off: “CME GOING TO GET LEGS” ; CME GROUP
Origin Agritech (SEED) is one of those China stocks that will run 200-300% in a day, like it has in the past. Today it is getting some nice ask volume, so we are positioning ourselves with some June 16th $2 calls at .05. Options provide a great opportunity to take little risk and have possible large returns. We think Origin Agritech (SEED) may provide that sometime soon.
