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Sunday, January 29, 2012

Weekend Thougths (01-29-2012)

Overall a narrow trading range for the past week. With the usual strength from 3:30pm to 4pm to recover the losses of the day. Except for Friday when it closed weaker than normal.

Wednesday, January 25, 2012

Another SPY Credit Put Spread

Demo-trading:
SELL 13 SPY February 137 Call (@0.32)
BUY 13 SPY February 139 Call (@0.13)

Analysis of currency pairs in groups

This is one of the very few things that consistently worked when I was trading Forex during 2010. The Analysis of currencies in groups also known as Parallel and Inverse analysis of currency pairs is the technique that analyses a currency's strength or weakness based on the behavior of the pairs where that specific currency is involved.

Didn't get it? No problem, let's go with examples.

Tuesday, January 24, 2012

February SPY Bear Call Spread - Trade Closed

Demo-Trading:

BUY TO CLOSE 13 February SPY 135 CALL @0.50
SELL TO CLOSE 13 February SPY 137 CALL @0.20
Debit: 0.30

Monday, January 23, 2012

February RUT Bear Put Spread - Trade Closed

Demo-Trading:

BUY TO CLOSE 5 February 830 PUT @44.50
SELL TO CLOSE 5 February 835 PUT @49.30
Credit Received: 4.80

Saturday, January 21, 2012

Weekend Thoughts (01-21-2012)

Well, well, well, the markets just don't want to go down. This is so similar to late 2010 - early 2011 when no matter what you threw at it, it would shake it all off, and would keep moving up. The funny thing is, the more it moves up, the more people are convinced and turn bull. Former bears recognize being wrong, change their mood and jump on the bullish bandwagon, when in fact the higher the chances of a top being close. Once the number of bulls becomes extreme, the markets pull back. But before analyzing current conditions, I want to give myself a pat on the shoulder for the successful January expiration cycle...

Friday, January 20, 2012

February RUT Bear Put Spread

Demo-trading:
SELL 5 RUT February 830 Put (@50.60)
BUY 5 RUT February 835 Put (@54.80)

Wednesday, January 18, 2012

How to adjust a Double Calendar Spread

This is something I was looking for on Google and was not that easy to find. So, I'll give it a shot myself with the little I know. If you landed on this page via a Search engine then you probably know what a Double Calendar is. If you don't, then read this.

What often happens with this kind of positions is that the market never stays in the same place and may threaten to reach one of your breakeven points. Let's analyze for example a hypothetical position on XYZ.

Sunday, January 15, 2012

Weekend Thoughts (01-15-2012)

What a boring week! Thank God I'm not a day trader (yet). Lack of volume, lack of conviction to either side and in the end the S&P500 only advanced 0.88% overall. I took advantage of some upside moves that increased Calls premiums early in the week and opened an Out of the Money Call Credit Spread on SPY, essentially placing my bet that SPY won't hit 135 by next month which is roughly similar to saying SPX wont hit 1350.

Tuesday, January 10, 2012

Amazing Crossover System. Expert Advisor

This Forex System was initially introduced by ForexPhanton who discussed in one of babypips' forums, and later on, it was selected by the community of babypips.com as the System of the month for the month of October 2011.

February SPY Bear Call Spread

Demo-trading:
SELL 13 SPY February 135 Call (@0.67)
BUY 13 SPY February 137 Call (@0.32)

Saturday, January 7, 2012

Weekend Thoughts (01-07-2012)

It was a terrible week for me as I couldn't get my drug so frequently to satisfy my addiction (the stock market). Turns out I had to go to London, Ontario for work and I spent the week in meetings and sitting at a desk with no privacy at all!! And it really sucks when you can't take a peek at the markets from time to time. Every 15 minutes I was pretending someone was texting me or something so I turned on the phone and looked at how the major indexes were doing without anybody noticing. Man it really sucks to be trapped in the 9 to 5pm working stiff! Other than that London was great, the crew over there was awesome (never seen people drinking more than those guys. These Canadians are insane) and the projects we are working on are pretty interesting too, so it was not that bad after all. I love this awesome nation!

Now, the markets...

Tuesday, January 3, 2012

BookingAlpha & OptionAlpha. A breath of fresh air.

Update June 1, 2013: The original article was written in January 2012. 18 months later I don't recommend BookingAlpha's service anymore. I still praise them for their transparency but some risk mismanagement has led them to very poor results almost from the very moment this review was initially written.

Today I want to talk about two newsletters that offer alerts and education to trade options in the US markets: BookingAlpha and OptionAlpha. I have been a subscriber of both newsletters for a while now, keeping them both in order to get their insights and learn from them as much as possible.

Sunday, January 1, 2012

Weekend Thoughts (01-01-2012)

Well, well, well....the year is finally over... thank God!! I'm sick of the carols everywhere and the cheesy year end commercials. Now down to business! As usual, here is a chart of the S&P500.