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REPLAY: Round Table with Greg Harmon
Greg Harmon, from Dragon Fly Capital, spoke about “Using Technical Analysis to Design Winning Options Trades.” Greg showed different setups and how he uses technical analysis to confirm his opinion of a stock in a trend and to create his price targets.
After the price targets are established, Greg looks at the options chain to see how he is going to play the trade. Greg manually reviews 1,000 stock charts every week in his search for the ten best trading opportunities for his premium subscribers.
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Tom's Trading Update for September 17, 2014
FOMC meeting announcement today. The U.S. equity markets hardly reacted but the U.S. dollar got stronger, so the EURUSD sold off about 90 pips. The 6E futures options trade is still down, but we are still at a very low delta so the trade is still in good shape! I closed the RUT weekly trade for +$850 in profit in two days. The SPX trades are all doing well as SPX stays around 2000.
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How Professionals Traded the Alibaba IPO
Jim Riggio and former Goldman Partner Ian Scott have been buying Yahoo calls for the last two months for the Alibaba IPO. See why they did that and how their results have been.
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Tom's Trading Update for September 15, 2014
I updated my trades in SPX, RUT and 6E futures options. The RUT call credit spread was +$850 in one day! I'm trying to close it on Tuesday. SPX is drifting lower but we are negative delta so that's ok. 6E is going sideways which will help us; however, volatility keeps increasing to the option prices haven't started to decrease much. It's similar to an earnings event with the vote in Scotland on Thursday.
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Tom's Trading Update for September 12, 2014
I updated my trades in SPX, RUT and 6E futures options. I had to adjust the near term SPX trade to flatten the T+0 line a bit but the trade is still in great position. The RUT is a weekly trade…a call credit spread and the 6E futures options (on the EURUSD) is recovering nicely with lots of time until expiration.
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REPLAY: Round Table with Len Yates
Len Yates, founder and CEO of OptionVue International, was our guest last night on the Round Table. Len showed us the latest volatility modeling he's implemented into OptionVue software that more accurately simulates the volatility changes that occur in a stock before and after their earnings announcements.
Len then showed us the new earnings tools in OptionVue. These are an addon but look to be quite powerful for finding great earnings play opportunities.
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Tom's Trading Update for September 11, 2014
The EURUSD is starting to consolidate, which will help our put credit spread position. The short delta is -7.9 so we're in pretty good shape.
SPX continues to stay near 2000 which is helping all of the butterfly positions. Over all slight negative delta with good positive theta.
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Tom's Trading Update for September 10, 2014
I closed the SPX butterfly expiring this week for a $70 credit ($5 in commissions), so the net was +$1287 in profit. The 6E futures options position is now at a -10 delta with two new contracts added today. Cash at expiration is +$700 but we have nearly two months to go but lots of room. Time to let Theta do its magic.
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Tom's Trading Update for September 9, 2014
The EURUSD had a strong reversal today, gaining back close to 100 pips from the low of the day. The 6E futures options position was morphed into a put credit spread at a lower delta (from -23.5 delta to -9.5 delta). I increased the size 50% to have a net credit at expiration. The position is down about $1450 but Vega is over -500 so a small drop in volatility will have a massive effect.
All of the SPX butterflies are profitable now. The SEP 19th expiration is getting close to the sweet spot. I locked in some profit and closed 1/2 of the trade today, which also reduces the margin requied.
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The Round Table with Len Yates on Thursday Sep 11th
OptionVue Systems International Founder Len Yates joins us on Thursday's Round Table to discuss “OptionVue 7: Features and Models for Earnings.” Len has unique insight into the inner workings of Option Analyais software. He has been coding the OptionVue platform for over 20-years.
