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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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tradewithZEN
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zentrader.ca
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  • How To Track Option Prices

    By Christopher Ebert

    Question for the Option Scientist: What are you using to track option prices?

    Answer: Obtaining the price, or premium, of an option can be both difficult and expensive. That may be surprising to some, as there are so many financial sites that provide free viewing of option chains. But, most option chains only provide current premiums for options that have not yet expired. Since my weekly analysis requires historical premiums for options that have already expired, typical option chain data is not helpful.

    As an example, here in April 2014, it is nearly impossible to find free information regarding the premium of an option with a January 2014 expiration, let alone the premium on a specific historical date, such as December 12, 2013. There are services that compile such information, but the fees can be prohibitive.

    Instead, I use several mathematical formulas that I originally developed as a means of evaluating the fairness of option premiums. These formulas generate hypothetical option premiums which are almost always at or very near the actual premiums.

    Since the formulas provide hypothetical data, I use them not only for determining historical premiums for options that have since expired, but also for determining the premiums at which options would have traded if they existed.

    For example, the April 4 weekly expiration likely had not been introduced for trading way back in December (weekly expirations are typically not introduced more than a month or two before expiration day). Even so, the formulas can determine what the premiums would have been.

    The preceding is a post by Christopher Ebert, co-author of the popular option trading book "Show Me Your Options!" He uses his engineering background to mix and match options as a means of preserving portfolio wealth while outpacing inflation. Questions about constructing a specific option trade, or option trading in general, may be entered in the comment section below, or emailed to OptionScientist@zentrader.ca

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  • Path Of Least Resistance Is Higher For Dollar

    By Poly

    This is an excerpt from this week's premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. Now offering monthly & quarterly subscriptions with 30 day refund. Promo code ZEN saves 10%.

    The action out of the dollar is not exactly blazing. But what I can say, with little doubt, is that it has none of the characteristics of a final Daily Cycle. If the prior Investor Cycle were still in decline, I can assure you that the dollar would have failed and well on its way below 79 by now. So although we're yet to see an upside burst or continuation, the dollar should be fairly well supported on the downside here.

    We still have a bullish chart working and we know from past Cycles that the dollar can "chop around" for a Cycle or two. And tomorrow is going to be a very telling day as the ECB announces it latest decision on interest rates, potentially opening the door for a change in policy. With the Eurozone inflation rate falling rapidly, while the Euro appreciates too quickly, the ECB might be forced to be a little more dovish in their commentary. As the path of least resistance for the Euro is lower, we could be in for a rather sharp move in the dollar tomorrow. Of course, markets can go either way.

    (click to enlarge)

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    Apr 03 3:08 AM | Link | Comment!
  • Index Charts Acting Bullish

    By Jeff Pierce

    Tags: SPY
    Apr 02 5:28 PM | Link | Comment!
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