How To Trade Agriculture And Fertilizer Stocks Through January [View article]
First I recommend reading up on what is a "bull put spread": http://bit.ly/UgWFuc
Bull Put Spreads are like selling insurance but with a limited loss. In this trade we are bullish the stock. Thus the further the stock goes down the higher premium a seller will receive for taking on the risk that the stock will remain up. If the stock is going up the seller will receive less premium as the market has decided the risk of the stock going down has declined.
Let's talk about the CF Jan'18 190/185 bull put spread. In this trade you risk $405 to make $95. This trade requires $500 margin, but you will get to keep the premium you sold (0.95 = $95) no matter what happens. However, if CF stock declines and say for some reason it gaps down to $130 and the stock never goes up again. Assuming it was the expiration date in January, you would realize a full loss of $500 but still keep the $95 premium you sold, so you would incur a max loss of $405 (before commission).
In this trade you want CF to stay above $190 for the entire duration until the close of Jan'18. If CF remains above $190 you will get to keep this $95 premium without any loss. If CF goes down the price of the this bull put spread will increase, we have a stop loss of 2.10 to get us out in case the stock declines too far
How To Trade Bank Of America And JP Morgan Through October [View article]
there are a ton of other alternatives out there. We just wanted to take a look at two stocks which may interest readers. FXY (Japanese Yen ETF) has great data during the August to October option expiration date period as well as AAPL, AXP, & SPY (excluding 2008)
How To Trade Bank Of America And JP Morgan Through October [View article]
Yeah there should have been more clarity in the writing. What was meant was, we cannot necessarily trust JPM at this time because it "just" broke out of a strong downtrend. We need a little more time to watch the price action
The Real Guide On How To Play Apple Into And Out Of Earnings [View article]
The article above is simply a user guide to past returns on AAPL after it closes for earnings. No strategy is predictive, but if your any believer of fundamental/technical analysis then either historical returns/earnings may be useful.
The returns above are simply show that AAPL has never fallen more than -6% the day after earnings (from close to close) for the past 14 quarters. A strategy betting that AAPL would not close more than =6% from its 7/24 closing price would have been one that is suggested to be "safe" with the historical returns presented.
In the end however, as we all know, AAPL could close anywhere on any date ($300, $350, $400, $500, $700). I just find historical returns coupled with good fundamental analysis to be useful, others may not find it useful and that's fine we all have our different styles.
The Real Guide On How To Play Apple Into And Out Of Earnings [View article]
Did everyone notice how AAPL has remained above a -6% decline from the close on Tuesday, so far the data is still holding/repeating itself on the 1 day performance. If AAPL closes at or above $564.86 on Friday then the data presented by will have been useful on the 1 week as well. Also if AAPL holds at or above $564.86 on August 7th (Tuesday) the data will have been useful again.
The Reasons These 3 Companies Are Attractive [View article]
Hope it works too, but CAT looks under the gun at the moment, the conference call was a bit depressing in language. I however remain optimistic at least in the long run CAT is trading at a nice value right now.
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How To Trade Agriculture And Fertilizer Stocks Through January [View article]
Bull Put Spreads are like selling insurance but with a limited loss. In this trade we are bullish the stock. Thus the further the stock goes down the higher premium a seller will receive for taking on the risk that the stock will remain up. If the stock is going up the seller will receive less premium as the market has decided the risk of the stock going down has declined.
Let's talk about the CF Jan'18 190/185 bull put spread. In this trade you risk $405 to make $95. This trade requires $500 margin, but you will get to keep the premium you sold (0.95 = $95) no matter what happens. However, if CF stock declines and say for some reason it gaps down to $130 and the stock never goes up again. Assuming it was the expiration date in January, you would realize a full loss of $500 but still keep the $95 premium you sold, so you would incur a max loss of $405 (before commission).
In this trade you want CF to stay above $190 for the entire duration until the close of Jan'18. If CF remains above $190 you will get to keep this $95 premium without any loss. If CF goes down the price of the this bull put spread will increase, we have a stop loss of 2.10 to get us out in case the stock declines too far
Why PEG Ratio Analysis Is A Silly Tool [View article]
How To Trade Bank Of America And JP Morgan Through October [View article]
How To Trade Bank Of America And JP Morgan Through October [View article]
How To Trade Bank Of America And JP Morgan Through October [View article]
The Real Guide On How To Play Apple Into And Out Of Earnings [View article]
The Real Guide On How To Play Apple Into And Out Of Earnings [View article]
The returns above are simply show that AAPL has never fallen more than -6% the day after earnings (from close to close) for the past 14 quarters. A strategy betting that AAPL would not close more than =6% from its 7/24 closing price would have been one that is suggested to be "safe" with the historical returns presented.
In the end however, as we all know, AAPL could close anywhere on any date ($300, $350, $400, $500, $700). I just find historical returns coupled with good fundamental analysis to be useful, others may not find it useful and that's fine we all have our different styles.
The Real Guide On How To Play Apple Into And Out Of Earnings [View article]
Option Spread Portfolio - Trading Google Into June And July [View article]
Option Spread Portfolio - Trading Google Into June And July [View article]
The Reasons These 3 Companies Are Attractive [View article]
2 Top Value Stocks Based On PEG Ratio [View article]