Out of the Office

Hello there addicts! It's another week, so make sure you have a clear mind and a positive attitude, and let's set our sights to make some money this week. I have some interesting things planned as far as activities and educational posts are concerned, so I can guarantee it will be another good week.

The problem is, I have something I need to take care of today and I might not make it into the office at all today. I won't be able to post until later on this evening, so hopefully you can make a good dialogue without me for a while. The watchilist will still post tomorrow as usual, and feel free to share your ideas until then.

I'll see you all later this evening. Go Warriors.


I Believe!!!


Create a Profile

This is not the prolific post of the day...yet.

I really, really, really want to talk about the topic of trade salvaging. Ever since that was brought up, I would love to offer my .02. In the meantime, I had a few comments a while back about being able to see pics of everyone on the blog. For example, when I leave a comment, it displays my picture next to my reply. If you would like to do this, here is how:

1. Create a blogger account.
Click on "create an account"
Go through the registration process

2. When you have created, or if you already have, access/edit your profile, and add an image. While you are there you can also add more info about yourself (interests, favorite music, books, movies, etc.).

This way there are no surprises at our Addict gathering in Chicago later this year.

If you have questions, just holler.


Good Afternoon Addicts!

Did anyone take VSEA from the watchlist earlier this week? Unreal!
I decided to trade at home this afternoon, and will probably head into work around noon. I'd like to get a good post in before the weekend, so if you have a request, lay it down.

Recommendation: I should probably take a shower

Long: MLM, anyone else participating?

Short: Watching AVB near it's neckline


HWCC- Finally

Recommendation: "The Dude Abides" (In reference to the "name that movie" guessing game that is being played)

Long: HWCC

Short: CME

Case Study?

So after a big push to 13,000, the market wants to catch it's breath. Not a big deal, right?

This provides a good opportunity to give some of your puts a chance to shine! After all, this is why they are in your account. If you don't have some, find some.

I also noticed the request for a trader interview. Plenty of people wanting to hear what someone who is doing this for a living has gone through, and it makes sense. This was the whole reason I started this blog. While it is one thing to hear all of the professional traders teach strategies at Investools, there are not too many open forums where you can read/ask questions/interact with one on a daily basis. I have traveled the same road that all of you have traveled. But what I did not have was so many tools and such a community available at my fingertips.

I will make a few comments about Brett though. Out of any student I have met in the 4 years I have worked for this company, I have never seen anyone with the drive that he possesses. In fact, our first interaction was an e-mail I received from him after attending one of my trading rooms. He mentioned that he took to my trading style, and that it was easy to relate to. Then the e-mails started to pour in. In fact, I even remember asking him early on if he could tone it down. However, Mr. Persistence only kept them coming. I respect that. If you want to be successful, you'll do what ever it takes. Once I realized this was going on, I decided I would do whatever I could to help. That's when I started to try and beef up this site a little bit. This way it could all be done publicly.

I have watched Brett fall, get up, fall, get up, fall and get up. Through his persistence and time spent he is only weeks away from making this a full time job. After 10,000 emails and a long journey to find a trading approach, he has optimized his own trading style and is properly equipped to do this for a living. Only thing he needs to do from here on out is trade his plan and stay disciplined.

Ask him and he will tell...this is not impossible. I wrote an article a while back explaining that not every person winds up being a successful trader. There is a huge turnover rate. Again, these are the people that don't follow the basic themes I discuss here everyday. I know each one of you has the same potential that Brett does. Now you all have to want it as bad as he did.

In closing: Brett, I have told you plenty of times...but I will tell you again. Great job! I am proud of you. I also appreciate how you have taken this experience and turned it around like I have done. Once you achieve your goals, you turn around and help others achieve theirs. Brett is one of the biggest contributors on this blog. In fact, he gets more press than I do. Keep an eye on what this guy has to say. He has my endorsement.

BTW- I noticed a suggestion a couple weeks ago to start sharing pictures of each other. I have one from Bretts profile he said I could share. Enjoy!
Recommendation: Give Brett a hug.

More on these two sections in a minute!



I like this breakout on ISIL. This one qualified as trade/investment of the week. Take a look at the 1 year and 5 year. Nice call Brett.

Recommendation: Looking at this as an somewhat short term play. June 30's? Very cheap!

Part II

Yesterdays Video

I had to use the YouTube version. Sorry about the horrible quality.

Dow: 14,000 (Stay Tuned)

Wednesday Golf is back in action. I was able to squeeze in 9 holes before coming into work today. Sweet.

At least it was nice to roll into work and see most of the trades moving well. I gotta catch up on the comments, but looks like everyone else is doing well also. Nice work!

I am getting on the phone with Revver...can't believe my videos are still waiting to be approved.


Long: OSG! Wow!

Short: CME



My videos have been sitting in the que for hours. If you would rather view them via YouTube, click here.

PCAR Can't Go Any Higher, Huh?


I won't say anything else.

I have been productive this morning. I have two videos recorded and being rendered at my hosting service. With any luck, they will get posted within the hour.

Recommendation: Should I hold a trade over earnings? For risk of losing the entire position, times like these make it easy to take risks.

Long: PCAR :)

Short: XHB


Patience is a Virtue

Here is another classic example of how patience pays off. Sometimes as traders we get too distracted or super focused on the day to day activity, rather than looking at the bigger picture. PCAR was a case study from about 3 weeks ago that didn't start off as a huge mover, but was absolutely money in the context of the "trend trade" as it was intended.

Some might have exited this trade for lack of time available until expiration. This is another example of why I don't ever want traders buying options with one month or less expiry. What a shot in the foot to settle for such a horrible option. You can have the stock pegged, the market trend in your favor, etc but this option just sheds time value faster than it gains intrinsic. Please don't waste your time with these, unless you are a day trader...then again that trader wouldn't have traded this stock.

Take a look at that chart once more and zoom away from the daily candlesticks, and watch the wave-like movements as the stock trends higher. In context of this trend, every movement was normal and expected. The option selection process can generate emotion that effects your patience in this trade, so make sure you pick the right option for your strategy. If you have a trending stock, get some time, and a hobby to take your mind off of the day-to-day movements. If you have a swing trade, you can select a more aggressive option and fall back on a time stop.

Anyhow, after a little patience...congrats on the new 52-week high.

Recommendation: Choose your options wisely.

Long: PCAR

Short: Patience

Just Another Manic Monday

The market of stocks is off tothe races this morning. I see a lot of interesting trades being mentioned and several good looking stocks that are setting up. POT keeps killing it and MLM is rallying strong as well. I am still finding my prey for this week while trying to balance a few deadlines. I'll have another list for us as usual by tomorrow morning.

I am also going to squeeze in another post on trading psychology. It's been too long since I have touched on that topic. I love to identify psychological behaviors that impact trading. I find that topic to be fascinating.

Anyhow, I will catch up with you a little later...happy trading.


DOW 13,000...

Could that be possible? We are nearing that number with some serious momentum. Plus I am finally starting to see the majority participating in this rally. Before I was not as convinced with the "Bull's Bad Breadth."

So what are we seeing that could be setting up for next week. No entries for me today, except for long calls on the DIA to pick up a few points. I am curious for what will set up on Monday.

Did you see MLM?

Recommendation: Leave a comment.

Long: MLM

Short: RHI (cha-ching)


Case Study

Golden State of Mind

Warriors baby! First time since 94! Even though they have to get through Dallas, my sources say Warriors in 6. Check their record vs. Dallas this year. I believe!
Yeah, so what this is off the topic of trading. It's good to mix things up now and again. Plus I would like to see a little playoff dialogue along the way.

Recommendation: Who's YOUR team?

Long: THE Golden State Warriors (I am a Bay Area product in case you didn't know)

Short: Dallas Mavericks

Quiet Storm

It was pretty interesting to see Water Transportation make such a wild move yesterday. We were out in front of this group by 15-20% at least. If you are not quite sure what I am talking about, I did an industry group spotlight on this group a month ago. Stocks like TK, GMR, OSG, NM, DSSX, OMM, FRO, etc. Despite a little retracement today, I still stick by my original thesis that these stocks make decent investments. Keep a few on your radar.

The video finally rendered last night during Mastertalk, so I hope a few traders found use out of it. I want to do these more often to analyze a particular stock. For example, last single trade we analyzed was X. Nice call by the way. Next time I do this I will produce it in video format.

I have a project deadline today. Creating some content for the Nasdaq website. Could be interesting! I'll be back after lunch!

Go make some money!!!


Out of Sight...Out of Mind


Time to start a new threat I suppose. As usual, my Wednesdays are a later start than normal. I'm getting my thoughts together and I am walking in to go throw a video together. Not sure it will be needed as I published the watchlist yesterday, but might be convenient for others.

Any suggestions on a Mastertalk topic tonight?

Recommendation: Below is the Marketcast watchlist...





Hopefully this list will suffice until I can get a video going. My recording studio is being manhandled by the tech task force right now, so recording a video right now is out of the picture. Yesterday caused such a stink, that I might be standing in the unemployment line by the end of the day.


Price Patterns

HME- Inverted H&S
EDU- Symmetrical Triangle
CME- Symmetrical Triangle
DIS- Ascending Triangle
EBAY- Ascending Triangle
ITW- Ascending Triangle
SMSI- Flag
GVA- Ascending Triangle
CNQR- Ascending Triangle (can I just type AT?)
CSH- Symmetrical Triangle
PSSI- AT (much easier)
LOW- Descending Triangle
RHI- Bear Flag
CX- Flag
AET- Symmetrical Triangle
CPT- Symmetrical Triangle
THQI- Flag

Support Bounces


Resistance Bounces


(Not a lot, go figure)

Watching for Breakouts


Recommendation: It's a good thing I care and look out for you guys. Here is the list, do with it as you please...but do me a favor....MAKE SOME MONEY!!!!

Long: www.optionaddict.blogspot.com

Short: I wish I could type it.... www...........

Tuesday Morning


I have only been here for two hours and I am going to throw up. In fact I got several phone calls last night at 9:30 pm asking me where the hell the marketcast was.

I told them "don't start."

I have to iron out a bunch of issues...and then I will have a video for you. Gimme a couple hours and it'll be here.

Recommendation: Open a nice dialogue here in the meantime.

Long: SHLD?

Short: The Marketcast


No Marketcast Today

If there happens to be any fans of the Marketcast reading this blog, due to technical difficulties we were unable to record today. I thought I would post this to pass the word along.

I have a watchlist ready to roll. Once I present a few patterns tomorrow morning, I will produce a few videos on the blog for your viewing pleasure.

Sorry for my lack of posts today....it was a bad day.

Blue skies are on the horizon though. Have faith option addicts!


Sure is nice to kick off the week to triple point gains. I hope eveyone is raking it in.

A lot of great trades are wandering around out there. I am going to spend the next couple hours finding them and putting a few watchilists together. I also have a ton of e-mails to catch up on.

I'll be lurking in the distance, but will be back shortly.

(I just wanted to get a new thread started for the conversations today)


Great Weekends Ahead...

I hope everyone has a fantastic weekend ahead of them. As always relax, reflect, and rejuvenate your self for a great week next week.

I was finally able to update Tuesdays video. If you go back to that post you should see it available. It was Revver's fault, not mine. Also if you ever want to watch them via YouTube, search for OptionAddict. You'll find a group page there.

Last but not least, I have archived the Marketcast. Go to www.jeffkohler.net/marketcast.

If anyone has any experience with creating a podcast/rss feed, let me know and it'll be on itunes soon thereafter.

See you Monday.

The Earnings Trade

Every three months this topic comes up again, so let's talk about it as a group and hopefully uncover a few ideas about how to trade around, through, above, under, an earnings announcement.

On all my presentations I have always taken the route to tell a trader to stay away or get out of the trade prior to an earnings announcement. For the newer trader it is not worth the risk in my opinion and normally they are not positioned properly to take a 100% loss on an option (and that can easily be the case if you picked the wrong stock).

The only hesitations I have in issuing a blanket statement here is that an earnings report can offer great movements on a stock and can interrupt an intermediate time frame for a trade.

If you want to trade over an earnings announcement...here is the way I do it.

I read up on the company, I buy OTM options, and I position my self properly.

Knowing I could loose the entire premium, I trade small. Last earnings season I was about 60% with this strategy (If I recall properly). You'll notice with most of the stocks that have the best moves, these are not always the best looking charts. They are not the uptrending stocks, bouncing off support, forming a price pattern, etc. Technical analysis will need to come in second to the fundamental story. I hate talking fundamentals but Quarterly earnings growth, analyst expectations, and revenue growth will be a few basic things to start with. Message boards occasionally will have good information, but a lot of it is random people trying to influence the opinion of another. I always try to mention that if you are easily swayed in your opinion...do not go this route.

Other vehicles to use for earnings reports are straddles/strangles obviously. It's been a few months since I last wrote about this but here are things I look for...

Volatile stocks
Repetitive earnings gaps
Low IV (read: buy your options EARLY!)

I like getting into these three weeks in advance, minimum. I always trade strangles, never straddles since I hate owning ATM options.

If you get a good run in the stock pre-earnings, you could always exit the trade early with one side of the trade profiting from directional movement, and the other not suffering such a huge loss thanks to rising IV. Again, the key is getting in early.

I wanted to add more detail, but I am short the time today. I will try to come back and answer questions in the comments, so leave them if you have them.

Recommendation: Trade em' small if you are gonna trade em'

Long: Full Throttle

Short: White Mochas

Friday the 13th

Any superstitious traders out there? I thought we would have ended off on a worse note, but the trend continues. I thought I would at least start this new thread today before getting to some other posts I had lined up. Feel free to organize comments here. Sorry I am off to a late start.

Long: Great continuation on POT, if you are not long...why?

Short: Still looking....


Profile: Stephen

Here is a copy of his trading rules. Please offer any feedback that you can or any suggestions that come into your mind. Participation in this activity will help more people here than just Stephen.

Hello Everyone,I just want to say thanks in advance to anyone who takes the time to read through this. I know your time is valuable so I honestly appreciate it.

For those interested, I will go ahead and spell out my situation exactly. I turned 27 in March and I have been studying the program for nearly one and a half years. Since I started, I have lost a total of $19,000. At the close of 4/11/07 the remaining balance that I have to trade with is $4215. For a lot of people studying this program, $19,000 might be how much they spend in commissions every year, but to me, it is everything I have ever saved. As much as I want to blame someone else, I know there is nobody else but myself to blame for losing this money. A lot of the loss came early and I was far too inexperienced to have been playing around with it in the first place - and thus made some pretty awful mistakes.

Originally, I had dreams of making a nice living with the program and being able to help my father retire a couple of years early with my trading skills, but that seems to be the furthest thing from my mind at this point. My family is not aware of how much money I have lost as I have just chosen to not talk about it at all with them. In fact, they still think I am doing really well with itand are even trying to get me to help them open an account for them so I can invest some of their savings.

Anyways, that is the background of this case study - I hope you do not have visions of me crying into my keyboard as I type this:) Usually when I get angry I close my computer and go running. I had to make a new notch in my belt last night and my neighbor thinks I am training for the Boston Marathon:)

On to my rules...

These following 2 sets of rules are for Support Bounces and Flag Breakouts. The flag breakout rules can easily be applied to any sort of breakout, but I specifically mention flags to be more detailed.

If you have any questions, please do not hesitate to post them or email them to me. I will answer all questions honestly and as quickly as possible. I have to drive my girlfriend to work in the morning, so I might be away for the open.


Thank you again,


Trading System for directional options (calls andputs) Support or Resistance Bounces:

-Timeframe: Short term Bullish / Bearish Continuation

-Document Earnings date (min. 10 days away & plan to exit trade prior)

1. Identify stock is approaching a clearly identified support or resistance

2. Use 30, 50, 200 MA to identify trend and S or R areas

3. Use candle patterns to confirm support/resistance areas and exit points

4. Use Fibonacci lines to confirm S & R areas

5. Use Bollinger bands, MACD(8,17,9) & STO(14,5) for market sentiment but do not use them for entries. (i.e. bullish if 2-line MACD above zero)

6. Buy on confirmed S or R bounce -OR- place a limit order to purchase option when stock is at least .10 above yesterdays candle on bullish or .10 below yesterdays candle on bearish trade

7. Place stop at .25 below the identified S or R (low of yesterday on bullish trade and the high of yesterday on bearish trade)

-On a daily basis (last 15 minutes of day)

1. I will move my stop to break even once the stock has shown a profit of $1

2. I will lock in profits of 50% as my stock moves beyond $2 in profit

3. I will lock in profits of 90% once my stock has reached 75% of my target price. At this point, a trailing stop of 10% below the current option price will be used.

4. I will set a stop at .25 below the low of the day on any bearish candle formation.

5. I will exit the trade early if I see a confirmation on any bearish candle.

6. I will exit the trade early if I see price weakness and a turn down in the MACD or Stochastics (I will not use MACD/STO alone for exits)

7. I will exit any trade that is moving sideways for 7 consecutive trading days.

Trading System for directional options (calls andputs) Bull/Bear Flags

-Timeframe: Short term Bullish / Bearish Continuation

-Document Earnings date (min. 10 days away & plan to exit trade prior)

1. Identify Bull/Bear Flag and support or resistance

2. Draw flag pole & and flag channel to identify S & R

3. Use 30, 50, 200 MA to identify trend and S or R areas

4. Use candle patterns to confirm support resistance areas and exit points

5. Use Fibonacci lines to confirm S & R areas

6. Use Bollinger bands, MACD(8,17,9) & STO(14,5) for market sentiment but do not use them for entries. (i.e. bullish if 2-line MACD above zero)

7. Buy on confirmed flag trend line break -OR- in anticipation of breakout, place a buy stop order to purchase option when stock is at least .25 above the upper (bull) or lower (bear) trend line of the flag

8. Place 1st stop at 1% below the upper trend line of the flag. (If not in front of PC, set a 1st triggers to set this stop)

-On a daily basis (last 15 minutes of day)

1. I will move my stop to break even once the stock has shown a profit of $1

2. I will lock in profits of 50% as my stock moves beyond $2 in profit

3. I will lock in profits of 90% once my stock has reached 75% of my target price. At this point, a trailing stop of 10% below the current option price will be used.

4. I will set a stop at .25 below the low of the day on any bearish candle formation.

5. I will exit the trade early if I see a confirmation on any bearish candle.

6. I will exit the trade early if I see price weakness and a turn down in the MACD or Stochastics (I will not use MACD/STO alone for exits)

7. I will exit any trade that is moving sideways for 7 consecutive trading days.


Some Charts...

I took four charts that were suggested to be analyzed for our activity today. What do you see?

CF- Looks like it barely holding on... thoughts?
How about IIG? SWEET!

Finally, GLBL. Nice!

PSA...allllllllmmmmmooooossssssttttttt there!


Short: CF & PSA (soon)

Challenge Accepted


You are on. In case most of you didn't know....I am open to house calls. If you ever need to talk sometime, let me know. I am also trying to find a way to set up periodic conference calls where we can get together and meet every-so often.

For those that missed it, Stephan left a comment in the post below that he wants to become the next case study. Where he will provide his trading rules, and we'll search for holes or offer up suggestions. Similar to what we did with Mike.

Stephan, get in touch with me and let's talk about where you are struggling. Type up your rules/approach, and let's feed it to the wolves. Thanks for your application to become the next case study.

No Fighting

I am getting a kick out of some of the comments thrown back and forth. Nice work everyone.

I wanted to start the day off with a chart to analyze but I see nothing interesting to discuss. Does anyone have a stock that they want to have analyzed by all the addicts today?

Send me your symbols and I'll provide the chart.


Marketcast Archives

I've been experimenting with the blog today since the market has left me with nothing else to do. In the right hand column below my archives, I have added a media library with all the Marketcast episodes. I even created our new logo. However, none of them will play yet. Sweet!

Kind of reminds me about this video I spent an hour creating today only to have it not upload (Revver refuses to return my calls). I am putting in all these useless hours creating all this crap that doesn't work.
I'll continue to work these issues out. Option Addict to the rescue!



Anytime you see a new video and a message pops up in the middle saying "Sorry but we were unable to load the data you requested, please try back some other time" this means I have posted what will soon be the video I recorded, but the content has not fully uploaded or been approved by the host. When you are able to see this message, so is everyone else. Check back in a few and normally that will give it enough time to become available.

Very Nice

Well, it a modestly boring day today. I have been sitting here waiting for over an hour to post my video. Revver actually has people watch my video in order to approve it. So I figure the poor person dozed off and never actually made it to the end to grant my approval. Oh well.

Remember this stock I have been tracking for over two weeks...
Anyone still tracking this? What else is everyone up to? Any "Nice" set-ups?

Recommendation: Look both ways before crossing.

Long: Perhaps NICE, maybe SHLD?

Short: USNA


Chi-Town Schedule

Get this....I am actually on the schedule this year for our Investor conference. For those that remember my issue with the Orlando schedule, I got dibs this year :)

Here is a list of the classes, and this year we will organize a better method of getting the group together. Anyone that is in the Chicago area should get on the phone with me and we'll set something up.

More on this to follow...

Day 2 Schedule: August 20, 2007
10:45 am - 12:00 am
Getting Started with Options
Jeff Kohler

3:00 pm - 4:15 pm
Understanding Option Volatility
Jeff Kohler

That's right, a 2fer!!!

We'll also record the Marketcast live again this year. I'm offended that it wasn't there on the schedule. PS- Here is a link to the schedule if you need a copy...


Tonya's Backtesting Results

For those that were looking for Tonya's system results I am going to publish them here. Sorry I am getting off to a late start, but I had to go shopping this morning for some new marketcast equiptment.

$SPX Trading System Backtest Results

initial entry signal confirmed enrty date $ movement
12-29-04 put 01-03-05 $34
01-18-05 put 01-19-05 $32
01-24-05 call 01-25-05 $29
02-15-05 put 02-22-05 $28
03-07-05 put 03-08-05 $56
03-16-05 call 03-17-05 loser
03-22-05 call 03-30-05 $20
04-07-05 put 04-08-05 $51
04-15-05 call 04-18-05 $24
04-28-05 call 04-29-05 $35
05-10-05 put 05-10-05 $32
05-13-05 call 05-16-05 $51
06-02-05 put 06-03-05 loser
06-08-05 call 06-09-05 $28
06-24-05 call 06-28-05 $38
07-20-05 put 07-21-05 loser
08-03-05 put ,08-04-05 $22
08-05-05 call 08-09-05 $19
08-06-05 call never confirmed xxx
08-26-05 call 08-29-05 $38
09-12-05 put 09-13-05 $15
09-16-05 put 09-19-05 $32
09-21-05 call 09-22-05 $24
09-30-05 put 10-03-05 or 10-04-05 $51-$65
10-12-05 call 10-14-05 $23
10-27-05 call 10-28-05 $45
11-11-05 put 11-15-05 loser
11-18-05 put never confirmed xxx
11-29-05 call never confirmed xxx
12-02-05 put 12-05-05 $14
12-19-05 call 12-21-05 $12
12-30-05 call 01-03-06 $48
01-20-06 call 01-24-06 $24
02-07-06 call 02-08-06 $39
03-06-06 call 03-10-06 $39
04-03-06 call never confirmed xxx
04-05-06 put 04-06-06 $31
04-10-06 call 04-18-06 $32
04-19-06 put 04-21-06 $22
05-04-06 put 05-10-06 $35 or $80
05-12-06 call never confirmed xxx
05-18-06 call 05-24-06 $19
06-02-06 put 06-05-06 $65
06-13-06 call 06-14-06 $35
07-13-06 call 07-18-06 $26
07-19-06 put 07-20-06 $21
07-21-06 call 07-24-06 $33
08-09-06 call 08-14-06 $34
09-07-06 call 09-08-06 $30
09-12-06 put never confirmed xxx
09-21-06 call 09-25-06 $28
09-26-06 put never confirmed xxx
10-02-06 call 10-03-06 $26 or $38
10-23-06 put 10-27-06 $27
11-03-06 call 11-06-06 $24
11-09-06 call 11-13-06 $43
11-27-06 call 11-28-06 $30
12-04-06 put 12-06-06 $9/loser
12-22-06 call 12-26-06 $16
12-27-16 put 12-28-06 $21
01-05-07 call 01-08-07 $25
01-11-07 put never confirmed xxx
01-24-07 put 01-25-07 $22
01-29-07 call 01-30-07 $27
02-12-07 call 02-13-07 $23
02-14-07 put 02-23-07 $82
03-05-07 call 03-06-07 $34


Early Weekend

I "worked" from home this morning. I decided it would be a light volume day, so I took the opportunity to teach Jordan how to trade. It appears he is still a little emotional in his analysis due to the crying, throwing up, and random squeals he would belt out. Based on this I think he meets the traditional mold to become an Option Addict.

If you want an idea how the market will open next week, pay attention to the employment numbers coming out tomorrow and as always, double check how the Yen is trading and index futures are performing prior to Monday. This will give you an idea how to start out your positions first thing in the morning.

I came in to the office to record the Marketcast and then I have some weekend to attend to. Which means I still am behind on a couple posts I promised (Futures Part II, Trading Earnings Season, and Establishing a Trading Plan). I promise I will make progress on these next week.

I also hope to walk through a couple "case studies" together. My intention is to do these at least twice a week.

In closing, go have a great weekend! We'll all be here for you when you get back.






Nice communication running through the blog today! As usual I am just stumbling into work this afternoon since they make me work Wednesday nights. I will try to get a few trade ideas and throw them into a quick video.

Cross your fingers...

Recommendation: If I am not back in 20 minutes, wait longer :)

Long: TSL...Day 2: So far so good.

Short: My empty promises.


You Must Have Been Joking!

Are you amazed at all the trade set-ups this week? My hands are full and I keep seeing tons more through e-mail, comments, sales calls, etc. I think I remember a comment I made on Friday warning you that this would be "The Week of the _____(insert your name).

Recommendation: Keep the ideas flowing...I still have another video to produce (hope it's not too late).

Recommendation: Get in this rally while the getting is good.

Long: Hopefully JBX by the close. While I was in So. Utah I frequented their establishment. (this is why the stock is up...they realized a crapload of revenue). When I retire I will build one in my basement.

Short: RATE and still smiling :(


Sorry if anyone took me seriously.

Patiently Upgrading


I was reading some of the chat flying around in the comments this morning about setting up IM chats. There are a lot of upgrades that will be taking place within the next few months, chat included. Please be patient, you won't regret it.

While I am not going to keep you from chatting outside the blog, I will ban your membership.

Recommendation: Fear the reaper

Long: All my shorts (covering)

P.S.- Video is rendering as we speak. It will be up shortly.

P.S.S- Don't mind the new addition on the blog. Pretend you didn't even see it ;)



As traditional Monday's go, I am working my way through the watchlist this week to line up fabulous stocks for everyone to analyze. It is taking longer than expetced since I keep finding reasons to get up and walk away.

I was reading in the comments today a comment about trading Iron Condor's. I pulled this comment from ToS about the strategy and how it has performed over the last 8 months...

Month 8 experimental results in posted by: Tom Preston on Mar 16, 2007, 11:14 am

The SPX settlement 1396.12 was a mile away from the profitable zone of the March 1420/1425/1495/1500 experimental iron condor. The max loss of $2,000 was achieved, which makes that the second max loss for the iron condors in eight months. The iron condor experimental account earned 14.05 in interest, and ended the expiration with a net liq of $8,727. The experimental long SPY position added $45.03 from a .57 quarterly dividend, leaving that positions net liq at $11,142, solidly ahead of the iron condors. The iron condors will need a string of 5 winners to catch up. That's possible, but so is the possibility of the big market moves that kill the strategy. We'll see what month 9 holds.

Net liq SPX iron condors $8,727

Net liq SPY shares $11,142

This discussion is for educational purposes only and is not intended as a trade recommendation.

Recommendation: Thank goodness I don't trade Iron Condors (Hint).

Long: HWCC since I am the most disciplined trader on earth to hold on to a 4% retracement. Ouch.

Short: Iron Condors


About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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