Looks like good old Amazon had a great announcement. Nice call. Nice entry signal.

Today/Tomorrow will be riddled with earnings announcements. Yesterday was a nice awakening to everyone reminding traders how tough things can be during earnings season. Especially if you decide to hold a trade over earnings. I have worked this horse over so many times, but you have to realize that anything can happen over earnings. Plan for anything. Yes, the stock can gap hard against you, what are you going to do about it? It could do nothing and wipe out your implied volatility. It could move in your direction, but you still lose money on the loss of time premium. Are you sure you've got it under control?

The secret ingredient is always proper position sizing.

Moving on, you'll see that the banking sector has rebounded a little today, the yen has pulled back, and real estate stocks have been given a courtesy bid by the market. It feels a little fake, especially with Amazon pumping the NASDAQ full of market cap. I'm sure you'll take any gain as opposed to yesterday, but keep your finger near the trigger. This recent activity doesn't feel right. The Option Addict VIX is starting to get aroused.

Recommendation: Buy Low, Sell High

Long: Position Sizing

Short: Earnings season

And... look at JOYG / BUCY a nice KABOOM Down! OUCH!


Nice clip for this morning.


It was random. but one of my fav 5's.

I like you Betty.


I do think we have to be the ball, you are not being the ball Danny.....

GRMN is making a huge run and PFCB is headed the other way. Thank god I follow my rules on a few trades now and again!

thanks to whomever pointed out GRMN and ADSK yesterday, got in at the end of the day yesterday.

Benton, I am cashing in most of my positions also, cash seems like a better idea right now while I learn ways to trade with the vix so high.

gave the middle finger to TSL today and dumped it, shouldve probably done it when jeff and eric trash talked it on the cast a few days ago.

long island ny

It's quiet...

Best day in options last week, worst day in options this week. Sigh, but good times. Still learning a lot feeling more confident than before about being able to right the ship and correcting the course. I've learned a lot from reading this site and from you guys. The conference call last week was great fun. I hope we can do that more often. Jeff you've been great. I've learned so much from reading the posts by Brett and the other regular posters also.

I've managed to push my account higher and higher each time. I was at my highest gains ever before yesterday. Now I am at a loss again. Time to play catch up a bit. Gotta learn that whole don't lose your gains thing.

I was up over 50% on 7 options, and 170% on AAPL oops (overall account was up about 12-13%). After yesterday, overall account is down about 20%. My position sizing and diversification was ok (actually not - I had no bearish plays but I was spread out evenly between industries etc.), but I had no hard stops, my mental stops were drawn on my charts and I was in court yet again i.e. couldn't get to my account during the big 2 hour slide.

So here we go again, as usual trying to make up ground for losing gains I shouldn't have lost, because I wasn't smart about my gains.

I shall continue to grow and learn. I'll get there, my technical analysis and stock picking has done pretty well, but my market forecasting is poor at best. And risk management... LoL.

The story of my trading is that I am pretty good at picking entries, and making money, and even getting out of trades with gains. I then get blindsided by bad news, earnings, or a big tumble on an overpriced stock that eats a big chunk of my earnings or hands me a loss.

These are my weaknesses, well at least the glaring ones... I could bore you to death with the whole list.

James H.

Energy is played out. Especially Alternative energy. I wouldn't have expected much, especially when TSL & FSLR had almost doubled over the course of two months. No thanks.


If those are your biggest weaknesses, you are doing great!


Nice breakdown today


$112 looks like a nice support area..


Flagging, support at $30

i just wanted to share to say that some time ago i think i heard you say the contrarian indicator over earnings is worth looking at. so many people were down on AMZN thinking they couldnt pull it off and 15% of the float was short. I held my long feeling any surprise would rocket the stock and it paid off. i thank you for your continued hard work and contributions and apologize for my lack of posts here on your blog...i plan to change that

BIDU at a nice entry


I am glad you were a part of it. Even though it isn't always evident, I calculate my posts, and I am glad you found a diamond here.



You put into words exactly what I am experiencing. What is lost in the market will also be gained...I know I am getting closer, but yesterday hurt.


at support

On the lighter side, FCX is still being good to me. I bought some when the little sell off happened earlier today. It dropped $5 for like 20 min, then it rallied back. I bought some during the drop, now its only down $0.77. Good times. Earnings tonight. If that goes well, $100.00 goes down quickly. If not, I'll be venting tomorrow. I usually don't hold over earnings - bad luck in the past, but with the Phelps-Dodge acquisition, and copper doing well past month or two, should be a good quarter hopefully.

James H.


I've been keeping an eye on BIDU myself but... I am a little concerned over the news of their current lawsuit problems. I would like a piece of BIDU though.


My account is as low as it's ever been, but I realized something about myself. I haven't been taking my losses, I've been hanging on and hoping, which is not smart trading. I am almost all in cash except for a few trades (with stops) and waiting for a more opportune time and better trading attitude. Thanks for all your help.


James H. I can relate exactlty but alas, I have additional challenges to over come as well. One is not being here to manage the down days. Just like 2/27 I was gone. DECK hit my 2xATR stop today which normally means I sold at the low again. To me this is the most difficult part of trading as I have great winners and then in one day or two they turn into losers.
Well I have only four trades going at present and account is down again but not much.

Sorry to hear that. I feel for you. Yes, yesterday was a bit disheartening for me, but I sighed a minute and went back to the charts feeling more confident than the last time I took a beating. I know that I know more than I did a month or two ago when it happened last.

The only part that sucks is that I was a little overconfident, I was doing so well. I'm sure you've felt the same. But we pick ourselves up and move on. Luckily, we have Jeff (especially Jeff), Brett, Raimo, and all the other guys to give us ideas and support to keep on trucking. I'm very thankful for this blog and the information I get from everyone here.

I'm just as thankful for the stories and hardships I hear from people like myself who are learning, good at some things, maybe not so good at some things. I like to hear how they beat some of their problems and how they got started. All around, this is just a good place to be. So... thanks again Jeff.

Good luck Amy, we'll get there. Each time for me, it seems to get a little easier to get it back when I lose a chuck of dough. I just wish I didn't have to get it back. Hopefully soon, if I have to get anything back, it will just be profits and not any original capital. At least now, some of it was profits. That is a good change. Good luck... keep hacking at it.

James H.

Raimo and Liz,

I agree that BIDU looks very tempting. This has been a great stock but I am much too chicken to hold over earnings which is reported tonight. This one has the potential to make an explosive move in either direction. The analyst report today is good, although their market share increased only a small amount.

I have to agree about BIDU. It is a gamble, which I am not going to do anymore, if I can help it. When a stock reports in the evening, there is no way to react if the news is bad, you just have to wait til the next day and get what you get. No stops help either because the big boys buy and sell after hours. So just a reminder.


OMI breakout

JK and Brett,

I can not believe how much I am up today. After my rant last night you would think would have jumped!

"Some people, pros even, won't play No-Limit. They can't handle the swings. But there are others, like Doyle Brunson, who consider No-Limit the only pure game left."

I think the Option game is pretty pure if I do say so my damn self.


I NEVER get into a trade just before earnings....one of my rules

What does everyone think about JEC? It just had a great earnings report and it touched near support this morning and bounced off it.

Yikes, what a horrible time to have been away from a computer for two days!!! You know... the thing I find incredible is that the lessons from 2/27 stuck!! Yes Jeff, you have a student who may be thick as bricks some times, but 2/27 was a lesson I won't forget. I had just sold 2 puts so I only had 3 on the go yesterday and they cusioned the blow nicely. Every call that I had was down... but most of them were way up in their patterns and were due for a pullback anyway. It was expected and I ended the day yesterday still above my pre-2/27 account balance (not that I looked... I paid my daughter to look.)

GRMN which I agonized over holding/selling last week has been my star performer. Brett, Rambo, Bob... thank you all for your input. It cemented what I already knew and it's up a pant-load today and sending my account (which I wouldn't know the value of, if my youngest wasn't so concientious in her paid duties) back up today.

I wish I had time to catch up on the last three days stuff here, but we're going out to look at a 30 acre horse farm with an arena, and riding stables and ponds and paddocks and fish, and grasshoppers, and mice and stuff. So tonight I will try to catch up.

Have a good day and it's nice to see liz and grant back.


Breaking the H & S neckline today??


Brett reminded me it is a takeover target..so be cautious

Hey Michelle, we should talk sometime.


You still think X is for sale?

Wahoooooo!!! Way to go, buddy. Nice to hear someone way up. James, I just had a moment to go through your post and you and Michelle are going through what we've all gone through. The questions sound so familiar it brings a tear to my eye (and my ear) because I have pondered the same thing many times. The trick, my friend, is to not be afraid to let your winners run. Right now I have 5 that have made around 100%, and 2 that are over 300%, one loser, and the rest are around 50%... that's out of 11 positions right now. Don't take 50% gains and run. You need those 100 and 400% gains to make up for the losers that inevitably come along.

Sorry, I've got to head off to see the real estate guy... I'll gab later.


everything is for sale. Even OA things.

But I trade the chart..I like the X's H & S

James...thanks for the support! I too was a little overconfident; and yesterday, I broke a few rules and I am paying for that also.

I know I am getting better at this. I have no doubt about that. This blog is amazing!!!


Dang Michelle, seems like you and I take a big hit at the same time even on some days when others don't. I'm sure most took a hit yesterday with the market down so much, but you and I need to exchange notes because every day I've taken a beating since I've been reading this blog, it seems you've been hit too. Maybe we can see if we are doing some of the same things.

I definitely have the hold and hope problem. Especially on stocks/options that have been big gainers for me. DECK - one of my biggest winners, also ATI, both now two of my biggest losers. Somehow, I managed to turn DECK and MLM into losers after good runs. Although I did get into both way late into their runs, still those were great stocks, unless you messed with them way too long, like I did. (I know DECK is still probably debateable).

I do much better at swing trading, and price pattern set ups. When I hold positions for very long, I get lazy, and inevitably, bad things happen. Short term trades, with definite targets are much better for my mentality.

Anyway, I wish you the best, sorry you are having a bad run. I know you were having some bad luck the last time I had a bad run. My email is jdhodgeatty@yahoo.com if you wanna shoot me an email and compare notes.

James H.

I mention CE a few weeks ago nice trend. It got hit with some bad news last week, but it is making a comeback. I think it worth a look.

KRC breaking down per jeff's watchlist



I thought your discussion on overtrading on last night's Marketcast was excellent (i.e, overtrading is when you sit down at your computer and don't see any trades, yet still keep looking for something to enter). Nice discussion on this topic. I've taken it to heart.



BTW, I have a 60 Acre farm for you with riding stables, mice, geese, snakes, and the like. Of course you will have to move to Idaho. But what a deal you would get.

I would even keep the geese off the property for you.


Can we live on a small little tiny plot on your 30 acres? Maybe just an acre or two? If Grant sees this, he'll be wanting to move back to Canada tomorrow.



I am from Southern California and only celebrities and national parks have 60 acres of anything!

The one eye sore out there left for me is HIG.

Sean M.-

I'm from southern California as well. I think you'd be lucky if you got a postage stamp size lot.


I think (if you are doing what I WAS,) I can tell you the self-realization I came to last night. I am not paying attention to my charts when they say "get out." After a stock breaks support, even if it has lost more money than you are comfortable with, it is better to sell, sell, sell than to hope it will come back. Take the loss and re-evaluate it later for a different trade. Even if a stock gaps down, like GOOG after hours, when it has broken support, take what capital you have and get out. I was also getting into trades way above support because they were really moving, and it is hard to manage risk that way. So if the market turns or the stock turns, you lose big. Also, until I get better, I will stick to stock plays. Option plays, you had better be right, or you will lose your butt. So, James, I hope some of this helps you. I knew all this stuff, but didn't want to deal with it. Why do we have to learn the hard way? The good news is I learned before I wiped out all our 401(k).

I would love to chat. My e-mail is michellemat2@yahoo.com. If you could give me a number to reach you at, I will definitely call. I think that I have learned to read charts, but I am not disciplined enough. If you've been where I am, it would sure be nice to hear. Thanks for all your help.

(Down, but not out, Michelle)

No kidding Liz,

I think it is funny here how if anyone lives on 1/3 of an acre or more, they seem to work it into most conversations.


Okay, now Grant is going to want to move to Idaho.

First I've got to keep my account moving higher.

At least AVB is moving down and making me some money...

Youngest eating a sponge. Gotta go.


Thanks C&C,

I have done that successfully with bounces ok. My main problem is stops. Like you, I have to be away from my computer a good bit (I'm in Court several days a week). I battle with myself as to whether to leave mechanical stop losses (which stop me out when I don't want to be stopped out) vs. mental stops which don't stop me out in emergencies when I am at court.

With stocks it would be pretty easy to not get killed with stop losses during court sessions, but with options, you can lose a great deal of money pretty darn quick as we all know well.

I set a stop loss on DECK (just for emergency) while I went to court couple weeks ago during its bipolar phase. When I came back it had dropped almost $4 to hit my stop, cost me $3,000, and then proceed to retrace right back to where it had been before I went to court. That was a groovy fun day.

After that, I quit using hard stops again. Fast forward to yesterday and the $10k hit to my account. I wished I had had hard stops in place again. I've been in this vicious battle with myself as to whether to use them or not. I've gone back and forth with which way do I get burnt worse.

Anyway, to not stray totally from what you are advising me to do, I get you completely. Let the winners run. I get that. And... I try to, I really do. My winners get over 100% all the time, usually fairly fast. I had 3 of them friday. I have 0 of them today. That's usually the way it goes. I'm just kind of thinking that once I get to some mental level like 100% or even 70% or so. I'm going to take some contracts off the table so I don't hate myself when days like yesterday take my 100%ers down to 20%ers or negative numbers.

But I'm with you, I just have some major bad luck with holding over time. Inevitably, news, earnings, or some freak downgrade gets me every time.

James H.


You actually consider today's activity on AMZN as a good entry? Do you make the gap new support and exit on any break below then?

It's great to have you back.
Did you guys have a good vacation?


Bottom Feeder,
I don't see where Jeff has posted that AMZN is a good entry. I wouldn't think it would be. He was talking about entering last week while it was at support.


Whoa, Bottom Feeder,
Sorry about that. I just read my last post. Didn't mean for it to sound so matter of fact and harsh. Unless I missed something, I think I remembered Jeff saying that when something like that gaps up, it is hard to get in because of managing risk.


He mentions it right under the AMZN chart.

Yeah, I see that now. Not sure what that means. I think he was talking about entering last week. That's when I entered. But, hey, I could be wrong. It won't be the first time (laughter.)


I'm still at the workshop and I have a question about "fixing bad trades". Mike is teaching Adv. Tech but is spending quite a bit of time discussing advanced option methods of fixing bad trades. I just want to know your take on this, ie, turning a bad call trade into a spread, etc. I know he hotline tries to talk you out of it and I was wondering what you think.


Bottom Feeder, What's up with your baby's hand? Is he being obscene?

Michelle, Sorry to hear you had a bad day yesterday. I was just lucky I didn't have as many trades. I feel for you. I feel like Benton. I want to take the summer off from trading. There seems to be a reason they say 'Sell in May and go away.'

James, What about trailing stops at 3% below support. Just an idea.


anybody stay short SKX?..congrats if so

Since I don’t have time to read many posts before the evening, I don’t know if it has been mentioned or not, but, one of Brett’s oldies but goodies is holding tight… HTZ. Earnings are tomorrow morning and the reaction wasn’t kind last time.

Doji Girl,

I think it is a terrible idea. I have many reasons why, but mostly due to the fact of holding on to a losing trade, to risk making it worse.

We should open this up for discussion soon.

I made the comment about it being a good entry, but the question is...

do you take me seriously?

is that a good entry to you?



ESRX....earnings today today @ 4pm
COL....earnings 2morrow @ 7:30 am

i am holding.....FLIR did nadda with earnings.....CRDN kicked my a$$.....i want an AMZN of my own...

Jeff, I don't treat big gap ups as a good entry on the day they gap. That usually means I missed the opportunity and I look elsewhere.


Oh, and Michelle, you made me cry.

It was a good entry for a day trade, Jeff. Does that count? :)


Doji Girl,

Trying to repair a trade via a conversion to a spread isa dicey proposition, I have done it a few times. Exits are tough.

The stock could turn around and head back towards your short position and end up costing you even more than taking the original loss.

I still do spreads, but way, way out of the money and I adjust them at the first sign of weakness.

Luck to all of us,


I'm with you. I held on to CAT, got a BIG beating. Held T, great report, nothing happened. Going to hold on to AAPL and ESRX today. I may be crying tomorrow, but I'm going for it! I waiting for MY gift!


I normally don't hold stocks through earning either - but I'm going to hold AAPL and FCX through today. AAPL has already dropped the only bad news we should hear, unless hearing it again makes it go down further? And copper has been going up so hopefully FCX earnings news can't be too bad (crosses fingers). But then again my earnings record is just utter crap. Position sizes ftw!

Good luck all.

James H.


I know, a 25% gap is not a buy signal. I was being an a$$ clown.

At least I threw it out before the gap. I had about a dozen e-mails today from happy campers.

I have a question? Why do company's report after hours. So small investors can't do anything about it, exspecially option buyers.sellers Hummmm... Why do companies come out with pre earning forecasts? Maybe to buy back their stock @ a cheaper price? Hummmmm... Can you Trust Corporate America or any Corporation for that fact? I think I'm going to start trading the Indices and Futures or maybe the Forex where you may have a better Shake!!!

Didn't mean to make anybody cry. Hopefully trying to keep others from making my mistakes and encourage some along the way.



An a$$ clown?

Boy I missed this blog!


I wouldn't hold AAPL over earnings. It tends to be moved by news. Look at the price action in the last month and a half. I sold my options and my stock. If it moves up, great, I'll get back in. But if you've been burned lately by earnings, I wouldn't hold it. Keep your capital. If you do hold, I hope it does well for you.

FYI - prophet charts are lagging in price yet again......



Was out and about this afternoon so I couldn't answer you back right away. We were on vacation and it wasn't that great. Long sordid tale. As I said yesterday to Bob, we won't be going back and are happy to be home. We came back early and spent the rest of our vacation here going to the beach and the Orange County Fair, hanging out at the pool. So, I've been playing catch up this last week. Piles and piles of laundry and option addict blogs.

Man, I just looked over at my watch list and boy, what a difference a few hours makes...




Anyone got any good call ideas that are relatively safe? I'm looking at several but they seem 'too late' or earnings annc next day or two?

Ideas? BIDU looks as good as anything I see...


For a good R/R on a call, look at NVDA.



If I am not going to hold over earnings, I will exit a day before they begin as both have the potential to move the stock.


You had mentioned earlier about possibly doing a post on how market makers manipulate stock prices. I would be really interested in reading that. Or if that is something you want to save for later could you point me in the direction of a good source i could use to learn about it?



Did you see my post pointing to Cramer's video on market manipulation?


Just put it on the radar - Scoot .. thanks ....

SLB and COP ... not bad either!



I do recall you mentioning it but cannot find it now. I watched teh one that Jeff had posted along time ago on Cramer and how the big brokerages and money managers "feed the general public" news about a stock to either run the price up or down depending on which side of the transaction they want to be on.

I guess though my question was about the market makers them selves. I wanted to learn more about how the price of a stock is set and how that can me manipulated. Can you help me out here?



The only issues I have found with market makers is on the AMEX. If you search the web you'll find plenty of dirt, especially on their former CEO, Sodano.

Other than that, I'd spend the time elsewhere. Even if a market maker sticks it to you, there's not much you can do after the fact.

As long as your using orders that protect you and operate in your best interest... I wouldn't waste any efforts focusing on it. I'm sure there are better things to spend time on.

You can live on the whole thing. I am not out there much. Boy we could start an OA commune on it.

Market Makers don't manipulate price, they match orders. The market determines price.

Sean M,
"I am from Southern California and only celebrities and national parks have 60 acres of anything!"

You know, if you asked the right people in Idaho, some might consider me a bit of a celebrity and a national park.


Oh Michelle,

Of course I read what you wrote at 4:12 p.m., right after the bell and think, hmm.... maybe she's right.

My earlier thought was that it is still down $5-6 from couple days ago and maybe that is enough to appease the market monster. Ah, how quickly we forget. But then again, don't we all know how tricky old Steve Jobs is? I was kind of thinking. If he made old AT&T release the bad subscription info., doesn't that mean it will make his iphone sales info look sharper tonight when he releases it along with all the other sales news of macs, ipods etc. Get the bad out of the way to make the so-so look better? But then again, you're right. I could have just talked myself into another reaming. Caution has never been my strong suit. Is that what makes us gravitate to directional options?

James H.



Thanks Jeff,

I will focus elsewhere. I t is good to know what is important to know and what doesn't really matter.

Are you doing master talk tonight?



For the Cramer video, google "cramer market manipulation".

There are a couple of things I would add to what Jeff said. Always use a limit order - market orders are an invitation to fill your order at a price other than the best on the market.

If you are going to use a stop limit order, make sure your broker and/or platform keeps the order and does not send it to the market until it needs to be executed. This prevents it from being seen by people like Cramer who can manipulate the stock price down just so they can take your stock. (He admits to doing this in that video)

The only other advice I have is watch the bid when you are trying to sell. If you send a sell limit order at the inside bid price (as seen on level II quotes)and it doesn't get filled, you can try calling your broker and asking them why it didn't fill. I have had success on 2 of 3 occasions where my broker was able to go back and see where it should have filled but didn't and then they were able to get me a better price. And this was after I did get filled at a lower price.


Did you guys see BIDU after hours? WOW!


BIDU up $40.00 after Hrs.

Good for you BIDU holders. It's nice to see those kinds of things happen.

Oh, Benton, Since I'm almost all in cash, I too, am looking for good entry points. Here is my list of stocks to watch:
Earnings tomorrow, so watch closely -

Other stocks: CVD, BEN, DHR and AAPL if it moves down to a support level. BEN has earnings, so beware. That is why I'm looking at it. I think the movement tomorrow will give an indication of how it will react.


P.S. Debbie, hope you had BIDU and got your gift.

Unfortunately I was not. I'm sure it's there somewhere....waiting and watching and then when I least expect it...out of no where....POP!

Our time will come. I just have to keep learning and playing smart.



Thanks for those .... I've made notes ... I jumped into COP, SLB and SEIC (put) at close ....

I seriously considered BIDU toward close - option prices were high .. and I didn't want to risk that much in this volatile market ... It could have gone $40 down too .. Hope some of you were in it and got the 'gift'. Yea! Congrats!

Hello all,

On a OA Gear note, my shirt came with black marks on it. I e-mailed the company yesterday for return instructions, they e-mailed me back within 2 hours and said they would be sending me a replacement and not to waste postage sending back the original. That was yesterday at 1pm. I received my shirt in the mail today at 2pm. Now that's service! You picked a great company to work with, Jeff. I wonder if they're publicly traded...;-}


P.S. Stopped out of DRYS, FRO, NKE,
Good riddance to them all!

AAPL earnings call going pretty well so far. Bid at $145.50 atm and rising. (crosses fingers)

James H.

Assuming AAPL does open at 149-150ish tomorrow, which is assuming alot. Would you all sell immediately (take the 200% or so) and see what the market does before getting back in, or see it as continued good momentum for the stock and hold on?

James H.

For me, I think I am going to see what happens in the morning and then take my profits. I have bought options in this stock 4 times since the first part of the year and have done well with it. This is the move I was waiting for.

Michelle I think this might be it.



Thank you for leaving that comment. I was hesitant to do this t-shirt thing, and I don't want to have anyone unsatisfied with anything. Please let me know if you have an issue, or you are not happy with what you've got. I know retail is not my specialty, but I will make sure you get taken care of. I obligated myself (mainly my partner) to make sure this wasn;t a bad idea. I just thought it would be cool to spread the brand around a little.

And by the way, thanks everyone for your support. I can't wait to see the shirts all over in Chicago.


Yes, this is it. It is up $11. Looks like you got a gift. Good for you.

Depends if you have an option or stock. Why don't you just see what happens in the morning, pull up your stop and see if it moves any more. Sometimes they move even more after the market opens and you get more. Congrats!!!

See, sometimes good things happen.


Have you considered shirts with your blog address on it? Maybe
"Make Money With Kohler at ...."
or maybe even put your blog address in little print on the Option Addicts shirts?

I can't wear a shirt with "addict" on it because I have family members that have overcome drug addiction and alcoholism and -- well, let's just say it might make them feel bad. But I'd love to advertise the blog and the ideas that are shared here.

Thanks for the encouragement today. I hope you had some BIDU and AAPL too. We are here to trade and, yes, make money.



Great point. I should try to create a logo or something as opposed to walking around labeled an "Addict."

Anyone got any ideas?

Probably won't get much response this evening. Master's Talk and dinner time. It is slow here about now. Might be a fun way to start out the blog tomorrow. Chris will proably have the best idea. He is the really creative one.

Gotta go finish dinner.


Oops. probably.

Instead of Addict how about

"Compulsory Option Barterer"


Oh I kill myself sometimes


Thanks for sharing all your recent ups and downs - it can't be easy to lay it all out, but your honesty is very helpful to those of us still taking baby steps.
I admire your continued good wishes for everyone else.
You are a class act.


I think Michelle has a good point. How about just a tasteful OA, maybe with more flair, in the left pocket area of the shirt. I know Raimo is sensitive about the " only average" thing but he will reap his revenge on the Phantom Poet and feel better soon.

Hey Jeff,

I like shirts with big, bold statements in plain lettering that are attention grabbing and then you have to look closer to see what the short is for.

Maybe something like:

"I make lots of money trading options"


"Should I hold over earnings?"


"Clean cups! Clean cups!"

Ok, just kidding on the last one but you get the idea.

Maybe put your URL on the front across the chest kind of small and then the big bold statement on the back? all text. graphics not necessary in this case I don't think.

Just an idea. Maybe others can contribute some possible statements.

I like Option Addict. I think it's an attention grabber as it is.

Though, I do understand those that don't want to offend family and/or friends by wearing the shirt. Maybe you could make a 'couple' simple alternative shirts and/or products with just the OA (mentioned by Sean M.) and a URL. After all, it is your store. ;-)


I also like clean cups! clean cups! I think that works well.


How about on the back of shorts or sweat pants:

" If you can read this you can kiss my ask"

Ok, funny, but to a small audience!

Does anyone else have ProphetCharts up right now? As if it weren’t bad enough that it took the last hour of trading off…leaving me high-and-dry for the late-day rally, but now it’s walking through each order that came in during that hour; tick by tick.

It’s providing a wonderful opportunity for me to relive all the foolish exists I made early this morning and cringe over the opportunities I missed before the close. It’s like the market’s laughing at me…taunting me…mocking my decisions yet again. The personification of what the market tries to do to me day-in and day-out.



Just me then… ‘kay


P.S. I wonder if BIDU will surge 40+ points the second time around. Can’t wait to find out…


My prophet charts aren't doing anything. Maybe it will a few seconds from now.

Wish I was in BIDU! I just didn't want to hold too many positions over earnings.


I looked at 'The Market Report' to see after hours quotes -- BIDU is up $34.82 after hours.


Just got back from Orlando and found my OA shirt waiting for me. Photo to come over the weekend when I have some time.

Dave, my prophet charts were just doing the shimmy thing also. Seems to have settled down now but it was crazy for a while.

Congrats to the BIDU, AMZN and AAPL holders. One of these days I'll have the guts to HOE in these volatile stocks. I'm planning on doing it for NTGR tomorrow. I took profits on half my position already and letting the other half ride. It won't be nearly as dramatic as BIDU, AMZN et al, but I will be delighted with 5 points.

Is anybody still in AIV? It hit my target today and I took profits leaving just one contract still out there.

Not much left in my portfolio now which is probably a good thing.

You guys are hilarious. What a nice way to end the day -- with laughter.

Rented "The Inn of the Sixth Happiness" with Ingrid Bergman. Excellent movie. Sometimes the old movies are overacted and too dramatic. Good movie. Thanks.

Sorry your vacation didn't go well.
Sounds like you guys made the most of it anyway. Glad to have you back.


Excellent Mastertalk! I really enjoy the entry and exit activities you do. Thanks for calling on me!

Hey Amy. It was good to hear from you.

And was the Sarah asking about HOC the Sarah we know here as well?

Mastertalk didn't record again! Too bad, I thought that was a great session.

Unbelieveable, huh?

Sean M. that was funny, your audience apparently isn't soo small.

Liz, nice to have you back - although I wasn't here while you were gone either hahaha!

Hello again everyone!



Glad to have you back.


Glad you liked the movie.


Seriously... I'm getting more than frustrated with masters talk. IT already extended my masters talk for another few months after my expiration date (because of recording problems) but it won't help if I can't ever listen to it. Oh, well. Such is life. Next time... hopefully.


3 Day Live Workshop...

Grant and I are going to the 3 day live workshop August 6th through the 8th. I wanted to know if by chance any option addicts were going to be around. If so... that would be cool to meet some of you face to face.



Thank you for my audience of one.

i vote for:

"should i hold over earnings"
it is just classic (the one question that can make jeff roll his eyes to the back of his head!! and people keep on asking)


"WWJD" (what would jeff do)

ps. i hate clowns.....nothing is freakier than old men in face paint around small children....yikes!!!

jeff....love the exit topic...these "games" have really helped w/entries and exits

I’m sick over the Mastertalk issues. I have listened to one since May and it was Jeff’s technically shortened one a month or so ago.

It is a damn good thing that IT led me/us to this blog. That is where our best value lies!

MT didn't record right again? Sigh, I've had to miss several of Jeff's lately, work bites. WebEx bites.

James H.

James H.-

I feel your pain.


Have you guys had trouble lately with Market Cast? It goes real slow and cuts out. Is there a way to download it so it won't do that?
I tried pausing it to let it download or whatever it does, but then it won't start back up. I haven't been able to listen at all this week. I feel out of the loop. Anybody know the trade of the week so I can analze it?


Strap yourselves in, folks. The sky is falling. Since I can't be around for another entire day I have actually placed hard stops on my few remaining bullish positions. Times like these I wish I had more bearish plays. At least I bought some COF puts yesterday.

Good luck everyone!

James, Liz,

I am right there with you guys too. I really look forward to the Mastertalk and it is so frustrating when you go to watch after tucking everyone in for the night only to find that once again WEBEX has again dropped the ball.

Jeff, I am trying my best to be there live because of Webex's issues it is just that that is the busiest time with the children. Sorry that I missed it.



They didn't mentioned a play of the week last night.


Unless things change, that's it for me. My husband won't allow me to trade anymore. He was sure happy when I was doing well. But once I had a few losers, he is -- well, good luck to you all. I hope you have a spouse that is more supportive.


NO doubt it is going to be a bumpy start (plunge). However, in looking at the S&P 500 futures, we actually had a low of 1503 yesterday and and the futures are currently pointing to 1508. There is no doubt going to be program and panic selling at the open but I will not be a part of it. I will not panic. I will wait at least 15 minutes after the open before making decisions.

Good luck everyone!



Sorry to hear that you are in that position. This period in time where the stock market is behaving this way has got to be the most difficult for traders like us. It is not just you that is struggling. I would expect that most of us are. I encourage you to at least papertrade and don't pass up this opportunity to learn how to handle this kind of volatile market. Build the skills and maybe you can come back (if you have to stop for now) and trade another day.

There is an ancient Chines saying that goes something like this "Smooth seas a good sailor does not make". Just think if you can take skills learned now and you can apply them when the market smooth back out!

I wish you the best in any event.


Oops - that should have been ancient Chinese saying!



It definately makes things easier when you both have the "fever". Maybe if you buy smaller portions or even stick to trading stocks not options for awile to build your account back up. I have several different accounts and I watched 12,000 disappear from my account over the last several days. It does hurt...but I know I can get it back and I'm sure you can too. Keep your chin up and good luck!


Everyone see the futures? Hold onto your seats! Here is my current portfolio. Exited out of almost all my option positions yesterday. Not out of emotion but more out of wanting to sit on the sidelines while the market figures out where it's going.

Stock plays



That's it. I'm really into a wait and see mode at this point.


I agree with Scoot ... PAPERTRADE during this backoff time .... play it like money and continue to learn and get better ... Create a great portfolio in paper - use your skills ... stay with us and then go back to small buck/position sizes and gradually build back up. You are good at this .. attentive and learning like the rest of us ... Just go back to paper - move slowly and you'll come back to the next level later. I wish you the best ..

To us all ... patience! Opening is sucking win ... we shouldn't get swept up in it .... at least I am not ...


Don't give up! These are such difficult market conditions. I feel like we're in the Perfect Storm of market conditions right now. It's crazy stuff. Papertrade, re-read Investools materials, read some of Jeff's book picks, keep blogging...but don't give up.


Thanks, Kim and all,
I did pick myself back up. My husband made the decision for me. It's not my choice. It's his account, so it's his money. I'll try to lurk and keep up with you guys.



If you have not read Reminiscences of a Stock Operator, then I highly encourage you to do so soon. One of the lessons that I constantly pull from that book is how Larry had to battle to become a truly great trader. He went broke several times but he would not give up. At one point, he was even a million dollars in debt because of his trading (and this is the early 1900s) but he kept on trying to learn and figure out what he was doing wrong. He did figure it out. Also, he is not the only successful trader to blow up an account. He became successful because he would not give up and I hope you don't either.



I have read so many of your posts and learned a lot from them and your progress. Please don't quit. I have and idea to throw out there for you. I know it is difficult if you don't have the support or your closest people. But what if you take a paper trade account and make a rule that once you are able to double it you will approach the subject again with your husband. At that point you could show him your results and perhaps start again. The problem with paper trading is that there are no real emotioal consequences to losing or winning so it is not as useful. One way to overcome this and make it more real and thereby help you to become a better trader is to give it a consequence. If you make it a rule that you cannot trade real until you have doubled your paper trade account the trades there will become real to you and you will learn to trade even during the externally placed hiatus.

I know how hard it would be to not trade and learn. I love the commitment I have sensed in your posts and feel your pain. This may provide you an option to continue your learning and growth.



I'm sorry that your spouse isn't as supportive as you'd like him to be. I'm very lucky in that regard. No matter how I'm doing, my husband is supportive. I think it helps that he understands the process more. Do what you can to keep learning. Maybe ask for a small account you can build up on your own where you'd be taking only 1 contract at a time (you'd probably feel less stressed). After you've made a significant percentage upward, you could try again with "his" money. And when you have this small account, don't put pressure on yourself. You'll doom yourself to failure right off the bat. And just do what you've learned here. I know you can do it.


I don't see any other alternative unless I put my three kids in daycare and get a job and have my own money to trade. He was lucky that when he was learning to trade, he didn't have a fearful spouse to deal with. If you have a spouse that supports, count your lucky stars.



from earlier post... I have the same problem regarding Masterstalk and juggling children. I'm sure it would be just like using the phone. They're quiet until you're on it.


Is anyone else in GOOGLE? Do you see support at 502.50?


I concur with the others. Stay with us, paper trade and continue to learn. This has been my worse week since I started trading last Oct. I have lost all profits and $1,140 of my principal. If I had not practiced good money management, I would have lost much more. One weakness seems to be when to exit. I am getting better at exiting a losing trade but I stay in too long when I am making a profit and watch my unrealized gains shrink.

I, too, am disappointed that the recorded Master Talk failed. I always listen to the recordings as I take notes and need to pause it often (I'm a slow writer). IV has already credited me with an extra month of MT's for previous failings but I quess I will call them again.


It is difficult for me to honestly relate as I am single with no kids. While this is beneficial to my trading career, it leaves something missing from life at this point. But who knows what the future holds, right?

I like to keep this thing I heard from a comedian in mind:

When life hands you lemons, find a friend whose life has handed them vodka and then have a party!



I wish I could remember quotes and sayings. You've come up with some great ones this am.


Things I have learned today

1) not every day that opens down 100 points on the Dow turns out to be a 2/27. Frankly, I saw the futures down 1.5% and was prepared for that, as we haven't seen that type of gap since 2/27. Not saying that it won't turn into that later, but already today is very different from 2/27.

2) I have learned for maybe the 4th or 5th time now that daytrading doesn't work for me. AAaaaaggh. I'm such an idiot trying to make back a few pennies by throwing some day trades out there and I always get burned. Luckily, I learned my lesson (again) with only a tiny loss, but still, my account would actually be sitting on a bit of a gain today, but instead it's hovering with a tiny loss.

3) I love CROX.

4) Everyone was right about DNA and I was wrong.

FYI...I just called IV to complain about last night's failed MT recording. I was given an extra month (for the 2nd time). However, I expressed to Maxie that I would rather have heard Jeff's teaching last night. Extra months are only helpful if the recordings work.

EEM is down considerably this morning. GLD and SLV are down as well. The VIX is way up. The FXY is also up.

And the good news is... those in BIDU & AAPL are also up.

AVB is down. I was so excited when I saw it was down $6 but then it moved back up. It's still down over $2 (at least at the moment).

POT is up but it never seems to move very much during earnings which is a shame because they've had the best quarter ever.



I have my strongest support line at $490 ish...

COL and ESRX bite the big one !!

APOL is still on fire !!!

Thankful for my puts today!!


Thank you. Unfortunately, you now have heard about half of the ones I can remember. Every now and then, I hear something that speaks to me and it sticks. I am just thankful that it usually not from that little voice in my head!



I said the same thing to InvT when they extended my MT. I would rather have heard the recording. Oh, well.


Sometimes it takes a lot more than once before we learn our lesson. I'm well aware of that lesson myself.



I was wondering where you were.

490ish seems like an awfully long drop... though it is a good or I should say strong support line. I also have one right about where it is now.



for GOOG, I see spt at about $505 to $500. Next area would be about $490. (I do not own GOOG).


Thanks to all who commented on support for GOOG. I bought 1 contract a few days ago and am beginning to regret it.

I am down to 6 positions (from 19).

Thanks to Jeff, my 3 puts are doing great...BSC, TSO, and HLYS.

I'm trying to find a few more puts at a good entry point.

LMT a good entry point? Earnings were a few days ago, up on a down day, at support..


FYI - trading curbs on the NYSE have been triggered.


I'm not telling everyone to get unnecessarily bullish, but before you panic and do something stupid...

The $VIX is now high (bearish), but backing down from Feb 27 levels.

The SPY, DIA, QQQ are all confirming intraday inverse head and shoulders reversals.

The SPY, DIA, QQQQ and IWM are all bouncing at support.

That may have been a capitulation bottom during a market correction. We could certainly rally from here.

Brett ... you still out there? You've been absent during this downturn ... and I just wanted you to know you were missed .... A burrito may be in order today! Actually .. EAT 5!

Chris is missing as well ... Maybe he is building a teepee on that new land he was looking at ....

Wow .. you were posting when I was writing ... welcome back ... Thanks for your post Brett!

It is a pretty bad market day when even AAPL, CROX, & GRMN couldn't keep my account positive today. I picked up some BIDU right above what should be support at 212, and DRYS (down) around what should be support today $54.90-$55(although when I did, and the market fell another hundred points, the support it was sitting on appeared to vanish with the wind). The market drug POT negative after good earnings, ugly, just plain ugly.

Its a pretty sucky day and it could be the beginning of some pretty nasty times if the market doesn't bounce back today or in the next day or two above support.

I hope you all are doing better.

James H.

What goes down, must come up..

I agree Brett. We are at a point where we could be at support in the market and there is a lot of time before market close. I am actually neutral at this time and I will have to see the breadth after the close today and see what happens tomorrow. Until then, I am looking at each trade and continuing to trade them per the rules I set before I entered them.


God love ya Brett,

I was just sitting here thinking, I wish Brett would pipe up and say something encouraging. I was watching the indexes earlier when the market was down around 140ish and watching it right around bounce area for the S&P & DOW and I was like here we go bounce time.

Then ... squat.

So, I hope you are right. We could sure use a boost right now.

James H.

Speaking of potential entry points, does anybody have thoughts on PCU? I didn't time my last entry on this one right and ended up getting out for a small loss on 6/27, right before it took off.


Hey Brett/Raimo,

Since you guys are around (and any other guys/gals), what do you all think about PCP at the moment. It seems like it keeps trying to break higher, yet it has nasty bearish engulfing candles.

To further complicate things it had good earnings but with the ugly market days even the earnings day wound up looking ugly because of the cap market day, I believe at least.

What say you oh wise soothsayers?

James H.

I like PCP a lot more at $125


Earnings means little, right? It is what the markets INTERPRETATION of earnins are that counts. Look at the bearish candles on 7/20 and 7/24...add to that that PCP is oversold and away from any support...not a good time to buy, especially with this market pullback, right?

Buy at support or a breakout..at least those are some of my rules..

Hope this helps, now let me go find Brett and start the rally....


I see 6/27 as an entry point. I would think the stock is going to drop back down to resistance (about 100) before going back up. Please tell me your thoughts.




Insert colorful language HERE, MT did not record again!!! We have not asked IT for more months as I am not sure how that would help. Our account has been crushed again and everyday we are getting stopped out of something. I am with family and cousins I have not see for many years so have not been on the blog or watching my trades which are now down to only four. Oh and to top it off I forgot to exit my last GSF call (more colorful language). BSC stopped out so I did not get that run either. Like James H. I took DECK from a winner to a loser and so it goes.

Michelle, Pam and I have had several conversations of quitting and doing something else with our money. Money in my mind is not nearly as important as learning and support. I think that is probably more painful to hear than the losses and I am sure you feel more pain from it. We are with you in spirit for support, I hope you know.

The market, my trades and IT are really ticking me off. Oh and my slow wireless and laptop too. But my time with my relatives was great and really amazing to talk about things from our childhood that I viewed one way that now as adults and hearing their side find that I was wrong and as a result relationships are now much stronger.

Long: Stronger relationships
Short: IT, WebEX and stops

Ann--I agree that 6/27 would have been a good entry point. I probably should have re-evaluated at that time and got back in. Since I missed that one, I was looking for another given the strong trend. I was thinking that the little consolidation period from 7/13 - 7/20, along with the small pullback over the last few days, might be a good place to enter, thinking the trend may continue on upward after this market correction.... I appreciate the feedback as I continue to work on my entries and exits....


Would one consider this a BIG down day on HIGH volume?

At least BSC is over 200% now, along with HLYS +100%, and TOL +100%. Too bad I exited some other puts this week because of earnings…

FLS is holding relatively steady and NVTL sucks. Oh, DECK sucks too!

I like the looks of SII if it holds. Post earnings and holding…

WOW....lets see if i can say this with out saying too much...

First off.....Jeff, it is way easier to say "I would stay in the trade" than it is to actually do it...(in reference to the PCP trade in maaster talk last night). COL and ESRX have both gapped down and broke my trend line. I gave them both a chance to recoup some $$ and about 45 minutes ago i decided to sell. I feel good about the decision, esp now that i rechecked and their price has fallen more. Yes, this could rebound by the end of the day (but today is my day off and i have errands to run, alot of them, so i did not feel comtfortable leaving those positions open)....if the market as a whole was stronger i would feel better about leaving them open, but i see too much weakness.

I want everyone to know (namely Michelle) that this is a learning experience.....you have got to hang in there. My acct bal has dropped.....i think it may even be safe to say that "everybody" has seen some sort of correction in their acct bal in the last few days (jeff, brett, raimo...care to chime in?).....BUT thanks to jeff and everyone on this blog, i have learned to play "defense".....for instance, at the highest point my acct was up just over 30% for the month, as of this moment it is up just under 12%......i have watched a handfull of really good trades turn to losers (b/c of earnings), i have watched AAPl sore (i sold mine a few weeks ago) AMZN has sored....i did not enter a trade b/c i did not see my buy signal.....i think my point is as long as you have rules and follow them, you will be okay......i have gotten out of some trades that the old me would have held on to, hoping for a rebound.....and looking at them today, man am i glad i followed my rules and exited with a small loss....cause now they are down, down ,down (AMG, BUCY, FTO, and FTEK to name a few)......
During the 2/27 correction.....i was unable to follow my rules....i held on to losing trades "hoping" they would come back and all it did was make for a larger loss....i am embarressed to say, i lost about 50% of my acct during feb.....then i was so shaken up that i refrained from trading for about a month.....that is about the time i started reading the blog religiously and following jeff in master talk....it was also around the time i learned to hit the mute button on CNBC (seriously)....heck right now i am watching wonder pets on noggin!!!

i feel like i am rambling, but i do not want you to give up....we all have obstacles.....not to get too personal, but i grew up in upstate new york, in a trailer where my pillow and blanket literally froze to my bedroom wall....i knew at a very young age that i was going to get out of there....i moved out when i was 16, i moved to florida when i was 19.....i married a guy who was a psycho!! he was physically and mentally abusive...i later found out he was on drugs and possibly dealing...i left with only the cloths on my back....he hunted me down, stalked me and my friends, and was going to kill me.....he came to my work with a trunk full of guns and ammo !! this went on for a whole year, he was arrested numerous times, but somehow he kept getting out??? it has been over 2 yrs (maybe longer, i try not to remember) since i have heard a peep from him.....i am remarried to a better than wonderful guy, we have the sweetest baby, i got my house back, and have boughten investment property....so my point is, i have gotten this far against all odds and i keep my chin up, i expect and demand great things and eventually they come....i do not feel bad about all the "crap" in my past, i figure it was neccessary to get me where i am now...if life was handed to me on a silver platter, i would not be as strong and independant as i am now.....i know "God" would not have given me this sweet baby and wonderful husband, if he was not going to let me enjoy them....so i endure the long hours of my day job and all this studying with a smile b/c i know the day will soon come when i will be able to have a life of luxury...rod and i will both be able to stay home and collect money from the market while enjoying ourselves.....

i know this has turned into one of those long posts, it has taken almost 2 hrs to write b/n diaper changes, feeding xavier lunch, and letting the dog out!!!
i hope this helps somebody....keep your chin up and expect/demand the best...we were all led to investools, jeff, and this blog for a reason

alright...i gotta go, xavier has a dog toy in his mouth !!! yuck!!!

Sorry, I should have specified. I definitely wouldn't buy PCP here. I own it already. I have for some time now. I was just trying to decide whether to sell and take my last remaining profits or whether it was going to hold its own and keep going up some.

I didn't realize Jeff mentioned it on MT last night grr. Rackin' Frackin' recordings. Anyone else remember Snagglepuss? Wasn't that the Hanna Barbara cartoon dog's? name that went around saying rackin frackin under his breath with that silly laugh?

James H.


I am sorry about your predicament. Hopefully, after some consideration and realizing that it is just a bad market period, your husband will reconsider. I wish you luck. Print him out the blog. Show him us all fussing about this week, that we all had a tough period. It will turn around for us and he will not want to miss out if he holds you out of the game. We are just all (well on this end anyway and many others) getting a kick in the pants right now.

You are a Winner! You'll be fine, I just know it.

Good luck,

James H.

Here comes the BOOM!

Anyone else hold some over earnings? That will jumpstart a good day!

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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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