One of the most volatile stocks last week was LNCR. On Wednesday the Financial Times reported that it was in talks to be taken over for over $40 per share. The stock immediately spiked on heavy volume from 26 to 29. The market clearly believed the story. So it was on the top of my list for trading the rest … Read More
New AAPL weekly ‘fly and SPXPM update
This post is another in a series tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of Optionsbuzz.com. The hypothetical butterfly on the SPXPM is progressing nicely. You’ll recall that this was instituted as a “longer-term” trade compared to the weekly broken wing butterflies that I had been tracking on AAPL and SPX. So for now … Read More
Longer-Term Broken Wing on SPXPM
This post is another in a series tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of Optionsbuzz.com. Over the past several weeks I’ve been selecting and tracking hypothetical broken wing butterfly trades, in real time, using the weekly options. I was using AAPL, SPX and most recently SPXPM, and all six trades produced simulated profits … Read More
“Et Tu, Bruno?”: Lessons for Traders from JP Morgan’s Recent Loss
London’s “Whale” got harpooned. After being in the press for taking outsized positions in the credit derivatives market, it finally ended for Bruno Iksil, aka the Whale—and badly. JP Morgan’s recent multi-billion dollar trading loss caused a huge amount of angst in the financial press over its prop trading activities and risk controls. As traders, we should pay attention – … Read More
Facebook Live
It is time to use the most overhyped IPO of the decade to share a few tips on First Day trading for an IPO. In addition to the tips below I will be broadcasting LIVE starting 5 minutes before FB begins trading and will probably continue to broadcast for another 5 minutes once trading begins. Everything written below is based … Read More
Play Like A Pro
It’s time for Episode 5 of When The Bell Rings. In this episode, I’ll give you some food for thought when it comes to your trading. We’ll talk about some distinct differences among traders regarding their approaches, and it should either give you some added motivation, or a boost in confidence. I hope you get a lot out of this … Read More
What Do You Do When You Hit Your Loss Limit?
Over the past 10 days, there have been two occasions where I hit my daily loss limit. Sounds like a tough stretch, but on a net basis it’s actually been positive thanks to some other good days. Mind you, I’m generally a disciplined trader, and in a dozen years of full-time trading I have broken my discipline countless times but … Read More
Follow Up to the AAPL Credit Spread
This post is another in a series that we will be publishing over the next month , tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of Optionsbuzz.com. Last week I introduced the idea of using a broken wing butterfly for AAPL, entered into for a 50-cent, as an alternative strategy to a regular put credit … Read More