Trade Entry Techniques


Jeff: phenomenal video. Thanks for making entries, exits, risk, reward, and common sense clear to us all. There's a place in heaven just for you.

Long: NOV
Short: Pessimism


Haven't watched the video yet (will do so now) but wanted to say to Jeff, I WANT MY SHIRT IN BLACK, PLEASE.

Oh...B(&P), I had to go out this morning, just got back so you beat me to it re WYNN. At this point I'll give it a couple more hours unless it makes a new daily high.

Now to watch the video....

Jeff, MOST excellent video (as usual). Thank you for the Slo Sto which I know I've heard you mention before but it just clicked with me now. And thank you for putting REG on my radar as well!

Regards to the wise and beautiful Amber and have a great weekend!

I'm just hoping no one tells Jeff how 'educationally rich' we are all becoming because he'll take the time to 'break it down' in terms we can all understand ... He'll start charging for this stuff most all of us would pay for.

Another sensational video that once again relates to my day to day trading. Can't thank you enough for the time, your experience and the way you are presenting it ... not to mention the continued marketing strategy as you model the newest line of OA fashions ... :))

Great week guys .. I'm on a short vacation and still checking in.

We're a lucky bunch around here!

Jeff again thanks for a great video.
You make it look simple.

Thank you ...again. great video. Each one gets better.

Thank you! Your video makes it look simple.I have been lurking for a while. Your information and communitee are awesome.

Thanks to everyone who posts for the positive input. It has made a huge difference learning I am not the only one that is struggling with my emotions and the basics that seem so simple when explained by Jeff.

Thank you all. You are making a difference.


Bought an ATI put. Looking real close at SBUX. Does look like a good entry point, although it has been going sideways. I might wait until Monday and let it start heading down first. Looks like a nice play.

Great video. Thanks for all the help.

Anybody able to watch yesterday's Market Cast? I don't even show there was one.


I don't see cup and handle on ICE.
What chart are you looking at for JOYG? Five-year? One-year?


Yo... you da man. Another great video and a couple more stocks to watch. I need a bigger hard drive to keep my watch list on. Got back in to DO today 'cause it just keeps on keeping on. OSG has done nothing but go up since I sold it on my "swinging" experiment... an idea gone horribly wrong. DRYS is doing well too, and could actually be an entry point in a while.

I like REG a lot!! perfect entry point on a stock with good downside potential. I think I'll git me some before I take my youngest one up to the barn to go riding.

That'll be it for me this week. An awesome week on the blog. Benton I agree with you. I said to Jeff in an email that I've learned more in six months on this blog than I could learn in two years solid at Investools. Have a good weekend, all. We'll see you all next week.



2-year on JOYG should work.

You don't see a cup and handle on ICE? Check out a 9-month chart and draw a horizontal line from top to top. Speaking of a cup with ICE, another Margarita is on its way...

Those of you in aware, don't panic, it's started to drop, more than it had been.

I have diag and horizontal support at ~$160, so we have a ways to go. I suspect it will pull back above this current level (~$162) before the end of the day, especially since it seems to be an extremely volatile day for it.

Michelle, I think you hurt its feelings with all of that talk of not moving very much!!! >:-O

Brett, drink another for me, oh and make it a double...enjoy your vacation...lucky dog!!!

Can't see the video at work, will have to wait till later...looking forward to it!

I was able to watch marketcast last night around 10.00pm (PST). I did not try it this morning though.


Dude, I really learn more from watching your videos than anything else i do.

I also appreciate you loading the videos directly so that we can save them locally. It makes playback much better. (I can actually watch them during lunch at work now).

Thanks man.

Fellow addicts

I have to update you all on the
T-shirts. Im trying to get all the shirts made up, the same as the one Jeffs wearing. (incl black, tanks, pink) I have to make sure the quality is good and then well add a link to get them. Shouldnt' be much longer......Hopefully by monday.....

Have a good weekend all and happy trading:)


Hey Jeff,

With your new Header...does that mean that you're all 'cracked-up'?!!!


jeff, I cant thank you enough for keeping this blog going. The video's are awesome! Looking forward to meeting you in Chicago!

One more nugget for today. check out OMRI. Nice channel and strong resistance holding. I think there's a good 10% move at least in this one.

I can't believe you are really doing this (t-shirts). That is SO awesome! I sure hope Jeff realizes how lucky he is to have you for a partner!


What the heck ????
just checking RATE on my "lunch break" and it is @ $49-ish.......i swear i was not intoxicated (still) when i looked last night and saw it was up to $63.....i am puzzled????? well maybe it was a hint of what is to come?? one could only "hope"

well i will be catching up on the blog this weekend.....have had wonderfull company from KY this i am way behind on the blog, BUT it looks like Jeff has done some great things w/the watch lists....can't wait to sit down and review it all!!!

Have a GREAT weekend

PS.... i caught my 15 yr old little cousin SMOKING !!! i am going to ring his much trouble can a 30 yr old girl get into for hog tying a 15 yr old boy (in florida)??? any lawyers on the blog?? (LOL)

If CME holds, it will be making higher highs.


CROX bouncing up off the most recent dip. Watch out for earnings in a month.

Amber, any plaid "Option Addict" shorts planned? (joking)

It would be pretty funny if a couple hundred people showed up in Chicago in plaid shorts and option addict T shirts. :)

Joel R.

Hope the market holds steady. I am out to run errands. You guys have a great weekend.



I am showing up for my presentation in plaid shorts and an OA shirt.

Awesome idea.

and a bowling ball

GSIC looking YUM (brands)

Thank you, Jeff.

Have a great weekend.


Thanks for the video Jeff. You truly have a gift.
Amber: Black, XL 100% Cotton

You two have a wonderful weekend

Thank you Jeff, GREAT VIDEO !


Shoutout to DavidS and his low risk entry on CVX the other day. Nice trade....and you said nobody was listening.



Falling volume on the way up..gonna crash and burn next week..

I have another one ORB. Brett a cup and handle?


Back against the wall ready to fall...good entry point right here...right at the exit if the trade goes against you...

BXP also a low risk entry, ready to roll back over..

I hope some of you are still in CTRP...yet another banner day..

I'm definitely taking the towels the next time I stay at the WYNN. Arghh!

Copper is on fire today. Go FCX and PCU.

Jeff, awesome call (pun intended) on RDC. Bounced off $39 just like you predicted.

Joel R.

WYNN owes me more than towels, which I just threw in on this one.
Not buying anything more today. Will get a fresh start and a full week on Monday.


I am taking my profits on this and is ready to pull back and earnings coming up...this was a great trade...


Love the link to the family site and love watching Jeff getting smacked around. that's one way to shake off a bad day in the market. thanks for sharing.


I'm with you. It sounded funnier in my head.

On a 60 day/60 hour chart it actually looks like an inverted H & S reversal pattern.

Joel R.

I am glad you held on to CME kiddo..

OK. So based on a recent Marketcast, I picked up an MLM Aug 170 Call when it was trading slightly less than 162. Today, after climbing a spell and falling a spell, it's now trading slightly less than 162 yet the call is now worth .95 LESS than what I paid. Theta is sitting around -9.0 accounting for about .45 of this loss. Volatility has actually increased in the last five days which (in theory) should have increased premiums. So where did the rest of the premium go?! This really sucks. All you smart options traders feel free to enlighten me, because I'm obviously missing something!


ps. What an ugly day. One of the worst I've had. All my positions (both short and long) are going the WRONG way! Ugh. I need a weekend. :(


Your statement on BSC:

"Falling volume on the way up..gonna crash and burn next week.."

Would you consider that your official press release on the matter?!!! >:-/\

Are you willing to put some of your Yuenlings against my Franziskaners?! Couldn't resist!!!

Way to call 'em buddy!


Increasing AVG implied volatility will not always impact your specific option. Especially if there is no change in supply/demand. If you are trying to tackle the math behind this one trade, don't use average implied volatility, use the actual IV for the option you are trading.

Although spending all this time figuring out "why" wont change the outcome. I'd turn off the computer and go fishing instead.

Have a great weekend,


Thanks, Bob Raimo, for encouraging me to hang onto CME. It was a bumpy ride, but what was a 1400 loss turned into a nice profit.



Jeff has said over and over, you get what you pay for. An August $170 call is a pretty aggressive option. Looking at the premium today, the stock would have to move at least $15.00 for you to have a profit by expiration. Take a look at the delta on that option, it has about a 30% chance of expiring in the money.

Taking a trade on a support bounce, going one to two strikes in the money and giving yourself at least 3 months of time is a much safer play. Investools teaches looking for options with a delta of .7 or higher. I personally went with the October $145. I could only afford one contract. But that option is still profitable, even after the pullback from the last 3 days.

Personally, I only trade out of the money options on breakouts where the stock is likely to make a big percentage move.

Joel R.


Good words. Thanks. I'm aware that the Aug 170 was agressive, but that's where my trendlines that I analyzed put it (though I might have to redraw them now). Your comments about ITM/OTM options is well received. I'm still learning the nuances between them. I'm gonna have to write that down. Thanks again!

I love this blog!!


__________________Lessson #1 for today______________

GRMN, OSG, and CTRP are three examples of why swing tradng doesn't work as well as trend trading. All three of these would have been sold way, way, way too early by swingers. I am a reformed swinger. I tried it and it sucked.

The good news is that I still have GRMN.

Matt, I feel for you but the market's a fickle lover. Today I could do nothing wrong. I had my best day in months in options... not so good in the 401k. It's just a matter of timing, and if you're playing the trend, some of your stocks will always be retesting support.

Good weekend to all... and to all a good night.


Along the same lines (theme.)

God bless us everyone.


Amen, sister.

Hey Amber,
Thanks for sticking your head in to say "Hi" from time to time. Makes us realize that Jeff's not just got an imaginary wife and kids. Some people will do that, you know.

We anticipate the OA stuff with bated breath. I suppose you'll be wanting US dollars for it. Oh well, another few months and the canuck buck will be on par.

Thanks, Amber for lending us your guy for this time. He is doing more good than Superman, Batman, Yoda, and Bambi all rolled together.

Which would be a bit of a mess... but you get the drift.


I agree on the trend trading. I am also a swing trader in the process of reform. It's tough because sooner or later, you get burned by a great trending stock that you jump in, ride it up to a huge profit, let it retrace and ... oops, it keeps on going and breaks its trend. Those can really scar because you watch so much virtual profit disappear and even end up taking a loss on what was a huge winner.

For me, WCG did that early on and so I slipped into swing mode and am just now trying to give trending a try. It has a lot to do with being able to see the big picture instead of watching each individual trade. It's tough for me, but I think in the long run, it leads to more profits. But what do I know?

Speaking of trends, I exited PAY today because to me, it looks like it broke it's downward trendline. I know, volume is light but I had this one under pretty close watch due to its recent higher low and the recent good news. I got in at the last high so I took only a very tiny loss on this. I would consider jumping back in if it breaks 35 again. We'll see.

Thanks for the kind words, Jeff. I'm happy to give back to the community any way that I can. Since I'm no expert trader I figure web help is probably the better way for me to contribute. Thanks to you, Jeff, and to everyone for giving so much here.

Thanks for the vid!
I want my t-shirt in army/camouflage colors :-) Just kidding, but seriously if you had one I would buy one
John O'Shea

Joel R. Love the plaid shorts idea. Its so funny because Jeff has now added at least 3 more pairs to the collection!

Sarah That is actually a mild case of Jaxon giving him the buisness! Ill have to post a better video of the way it goes down with these two maniacs.

Doji Girl, You sure know how to make a girls day!! Your to sweet Have a good drums session.

C&C no no we are not im sure at times Jeff wishes his nagging wife was. Ha Ha just kidding! (right Jeff???)Im glad that you guys enjoy Jeff all his knowledge. He truly gets so much satisfaction from doing the blog. It is really rewarding for him to see you all succeed.
He has such a genuine heart.

anyway enough mushy stuff.....I just have to get this out there, I am the absoulte worst speller and I dont have the time for spell check. And Its ironic that that is Jeffs #1 pet peeve.. but if you find spelling error after spelling error, just know it probably wont be the last!

ok so were off to the enjoy the weekend!

Oops the above comment was from me, AmberK. sorry,

And Also Tim..the changes look awsome! nice job!~


you all are so colorful, i have enjoyed reading all of your comments. Thank you to everyone, especially Jeff and Amber, because you care.

newcomers, s&f

I was going over my watch list getting ready for Monday. Looks like BEN is an ascending triangle. I did a swing trade on it last time it broke out. TSO looks like it is at support. Although, I need to do a quick study on oil and gas and see how they are doing these days.


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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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