Strategy, Approach and Statistics

We moved to a new home.

We launched paid real time alerts. Please visit us at http://www.MyWealthyOptions.com

For questions, write to us at info@mywealthyoptions.com


You may want to investigate other newsletters like Booking Alpha, Benzinga Cash Generator, Benzinga Options and Volatility, Glinser Services, The Option Wiz for the real time alerts and auto trading experience. Commission plays a bigger role in improving the profitability of spread trades. It may be a good idea to open an account with low cost brokerage firm like Options House (100 free trades) to give extra punch to your gains.



Thursday, January 19, 2012

Sand Bagging or Upside Momentum

Option expiration week is high risk - reward equation. Market is continue to rise, and the gains are about best in a decade for the similar period. We will know next week if it is sand bagging or real momentum.

As expected, eBay did well in today's market.

We opened a position around 10:30AM today and soon after it traded 5% lower. Per my experience, the best time to open calendar call is either between 11:30 to 12:00 EST or 30 minutes before the market close. It was a good reminder to read my rule-book, anyway; spread closed at breakeven today, and we are on track for 10% gain within a week.

Overall, market is hitting the resistance, and a pullback is not ruled out. I am actively looking forward to opening VIX (Volatility) and GLD (Gold) positions. Gold is showing weakness; I'd be in for any 2% drop. Volatility is under 20, and I want to take a contrarian call on VIX.



No comments:

Post a Comment