If you’re worried, scared, uncertain, unhappy, on tilt — or all of the above, depending on the hour — it’s ok to do nothing. Cash is a position. Cash is comfort. Cash is control. Cash is Safety. It can be very tempting to go in and try to sell all the premium you can here […]
So far in the early stages of this market correction (dare I say Bear Market? Too Soon?), I’ve been aggressively deploying Bear Call Spreads to attack bearish trading opportunities. Bear Call Spreads are a version of a vertical spread that consist of a short call at or slightly out-of-the-money and a long call further out-of-the-money. […]
Happy Thanksgiving! During our family’s feast this year I’ll be reflecting on my gratitude to each and every one of our subscribers, and to my team here at All Star Charts. I could not ask for a more engaged audience and a more top-notch group of analysts to work with. This year marks the maiden […]
Until stock markets sound the “all clear” signal and we can get back to our regularly scheduled bull market, we have to operate with a different set of rules in order to protect our capital — both money and mind. Corrective or Bear Markets require a different set of tools. And it’s not just knowing […]
Sticking with a theme we’ve been discussing with All Star Options subscribers for the past month or so, we expect to continue keeping things simple around here until the market tells us it’s time to change. One way we’ve been keeping things simple is to be buyers of straight long call options. It’s still a bull […]
Stocks are still near all-time highs, volatilities are once again compressed, earnings season is behind us, and some bullish runs in individual names are looking extended. Coming out of Labor Day Weekend, the game plan should be to keep it simple until things change. I’m often asked how I choose which strategy to express our […]
In options trading, risk management starts with defined risk and ends with position sizing. “Stop Losses” — if used at all — center around price action of the underlying and give zero weight to the value of the option(s) itself. As an options trader, nothing makes me cringe more than hearing about traders “protecting” their […]
This spring I joined my good friend JC Parets at All Star Charts to help him provide added value to his trading ideas for his research clients. Together, we launched All Star Options which aims to offer actionable plans utilizing options to take advantage of trade ideas suggested by the All Star Charts team of […]
Options are a leveraged instrument, and if you’re not careful, it’s easy to find yourself exposed to more risk than what you’re comfortable with. A subscriber to All Star Options pinged me this week with some questions and I thought our discussion might be fruitful to everyone… Subscriber: The idea of keeping a good risk […]
I was confused too. But no, $DQ is not America’s favorite destination for shakes, malts, and blizzards. But it is sexy in it’s own way — it’s an energy company named Daqo New Energy in one of the hottest sectors we think will be leading stocks higher this year — Solar Energy. According to wikipedia, […]