Weekend Portfolio Analysis (December 5, 2015)

Market Conditions Volatility returned to the stock market briefly this past week as the VIX rallied to 19.35 on Thursday. Economic data was released all through the week, but the main drivers of the market activity were… you guessed it… economic stimulus and interest rates. Thursday morning, Mario Draghi announced that the ECB would expand…

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Weekly Credit Spread Strategy

I am frequently emailed by readers with questions regarding specific trades, my trading methodology, etc. In the past couple of weeks, I have received several emails regarding the weekly credit spread strategy that I have employed. It became apparent to me that the level of interest (and confusion) about how I trade this strategy warrants…

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Two Trades for April 13, 2015

Today I entered two new trades, a credit put spread in SPX and an earnings trades in Johnson & Johnson (JNJ). In the Weekend Portfolio Analysis I indicated that I would be looking at several earnings trades this week. JNJ reports earnings before the bell tomorrow morning and offered favorable risk/reward potential. Just sold a…

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SPX Trading Blunders

The short-lived increase in volatility this past Wednesday offered great opportunities for the disciplined and mechanical trader. On the other hand, it also presented great challenges to those of us that were holding short put options set to expire on Friday.  The past couple of days put my trading skills to the test. I failed…

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Catching a Falling Knife (or NDX)

Today I did something stupid… I tried to catch a falling knife. I’ve got a bulletin for all of you – it hurts! No, I didn’t really try catching a falling knife. This is simply an analogy for what I did do today, which was equally unimpressive. Allow me to walk you through my thought…

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