What is a call option? A single call stock option gives the buyer the right but not the obligation (except at expiration) to purchase 100 shares of the underlying stock for a set price (the strike price). Some options can’t be settled with the purchase of the underlying like an index (you can’t buy an index!), in which case the … Read More
Looking For An Oversold Bounce– $YRCW
YRCW reported disappointing earnings on Wednesday and gapped lower. It moved very well off of the previous S/R levels 22 & 25 (see chart below). On Friday it traded below 22 as selling began to pick up again and it closed at 18 which corresponds with its pivot low from May & June. The large surge in volume as it … Read More
What is a Growth Stock?
This week I wrote a post Study Trading not Markets ($TSLA) where I shared the power of studying trading patterns over stock fundamentals. After all I play the game of trading pro not economics professor or Uber-Confident Financial Media Entertainment Complex Guest. My job is to make excellent risk/reward decisions with my firm’s money to which for some trades longer term … Read More
Study Trading Not Markets ($TSLA)
Some traders/investors make the mistake of studying markets instead of trading. This can negatively affect your trading performance. More specifically, this certainly was the case with the recent down move in battleground stock TSLA, the growth stock. For those of us who have traded professionally for 15plus years it is hard to watch and read the nonsense about TSLA’s valuation. … Read More
What’s Working for You?
For those of you who don’t know, trading during the summer months can be tough on your patience and P&L. A sizable portion of market participants and those with the ability to move markets all go on vacation and enjoy themselves while the rest of us stare at a computer screen that looks like it is frozen in time. I … Read More
Andrew Keene visits SMB
Andrew Keene stopped by our trading office in NYC last week to talk with those in the SMB College Training Program. He was visiting before sitting as a guest on Bloomberg TV. Andrew has been a presenter with Seth Freudberg for the SMB Options Tribe in the past (see the video below). One of our trainees put together his thoughts … Read More
Do Not Fear the Bots
Computer trading has become the largest part of our market’s volume threatening the profitability of many discretionary traders. Many traders/investors fear the bots. We shouldn’t. We should embrace their underlying technology and use it to help us find more of our favorite trading patterns. And even turn quant. Adding support to my thesis above was a recent blog post at … Read More
John Locke Weekly Market and Position Update for August 5, 2013
Be sure to visit our trading blog! www.lockeinyoursuccess.com