Viewing Category : trading corner

Post thumbnail of November options expiration
20 November 2009
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November options expiration

Things are pretty slow after a weak open on this expiration Friday. One trade that can work well here is to buy at the money straddles starting at around 11:00 AM, and hold them until 2 PM, or until they hit your profit target (don’t get too greedy on a …

Post thumbnail of Dealing with a manic depressive market
30 October 2009
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Dealing with a manic depressive market

Today’s 249 point decline in the Dow, coming on the heels of yesterday’s 200 point rally, should leave many folks scratching their heads. What’s a trader to do? The short answer is: Pack up your marbles and go home. This is not a rational market, and the cross currents make …

Post thumbnail of A safe (ish) way to short a highflying stock
26 October 2009
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A safe (ish) way to short a highflying stock

A few weeks ago, with Amazon trading below $90, I wrote an article about why I thought Amazon was a terrible short candidate  (see here http://seekingalpha.com/article/162186-why-shorting-amazon-is-a-bad-idea). Over valuation can look like a compelling reason to bet against a stock — after all, sanity has to return sometime, right? But as Keynes …

Post thumbnail of “All the Fed’s horses and all the Fed’s men….”
23 September 2009
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“All the Fed’s horses and all the Fed’s men….”

The love letter that the Fed wrote to wall street at the open market meeting got a quick rise out of the bulls, but they could not hold the gains into the close, and we ended up with an 70+ point down day. Not huge by any stretch, but this …

Post thumbnail of Gone fishin’
21 September 2009
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Gone fishin’

In the current market I am finding exciting buys to be a bit thin on the ground, and consequently I am doing a lot of watching and waiting. One thing you can always do in any market however, is go fishing for long term spreads at compelling prices. If you …

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