Options Trade of the Week

  Trade: 8/10/2010 WHR $86.07 Buy 2 August 85/90 call spread limit price $ 1.65 target 3.00/ by August 17th stop 1.10/or a stock close below 83 Reasoning: WHR- looks like it found some support in the 85 level the past few weeks. A move above the 87.31 level should see the $90 level quickly (same day or with a … Read More

The Bottoming Process

There is a lot of money to be made in a stock that has been beaten down.  Generally, after a stock has been destroyed for some fundamental reason it will have some type of longer term bounce where traders can gather information from its price action over the course of several weeks.  In the case of RIG it bottomed back … Read More

SMB Trade of the Week- Bearish Momentum Trade (VPRT)

Each week we share with you a trading pattern that we use consistently on our desk. Like most successful traders (all?) we have measured the win rate for this trade. In short we are giving you an intraday trading pattern that works. In this SMB Trade of the Week we will share a Bearish Momentum Trade that we made in … Read More

A ? 4 the Trading Community- Specialize or Well-Rounded

Dr. Steenbarger helped SMB recognize one of the improvements we could make at our firm awhile ago. The partners and Senior Traders must be responsible for a great deal of teaching and mentoring. But if traders are not leveraging the talent of all firm members then that firm is not offering the best learning environment. Traders learn from other traders … Read More

One Good Trade Hits the Shelves

In One Good Trade: Inside the Highly Competitive World of Proprietary Trading, author Mike Bellafiore shares the principles and techniques that have enabled him to navigate the most challenging of markets over the past twelve years