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, […]
I received this email from a reader this weekend: Reading that post of your friend, my question is: I am a small trader — really small. I have tried Options rooms before but to no success. They either have you buying so many options of companies you’re bound to win some I guess. I really […]
Please allow me to introduce myself. My name is Sean McLaughlin and I’ve been involved in financial markets as a Trader, Exchange Member, blogger, in building social communities, in podcasting, in training, and in sales for 20 years. Some of you may already know me or have engaged with me on Twitter, Medium, or StockTwits […]
I’m going to disappoint the options eggheads with my opinions here, because I’m going on gut feel. I haven’t done any exhaustive research. I haven’t done any volatility skew analysis or 3D modeling. I haven’t reviewed seasonality patterns, or dug deep into open interest imbalances. No, I haven’t done any of that. Simply trusting my […]
[There is an update to this story at the bottom of the post, skip ahead if you’re already read the first part] I caught up with a trading friend of mine in Denver this afternoon to chat about what we’re seeing in the markets these days. After the usual swapping of the usual stories of […]