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Explaining Gold Options

Gold options allow investors to buy or sell gold bullion at a future date (date of delivery) at a set price. The quantity of gold, date of delivery, and price are all preset. As the name implies, trading gold with options is merely an option, not a requirement, so investors are not obliged to either [...]

The Fed Taper Explained by SPX Options

With the last major news item for 2013 less than 48 hours away, I thought I would share some insights as to what the S&P 500 Cash Index (SPX) options were pricing into the Federal Reserve’s monetary policy announcement due out Wednesday. After the news is released and the week ends, it will be time [...]

The Right Steps for Options Trading

Many experts will try to explain the right way to trade options by laying out a certain number of steps.  For example, you may see ‘Trading Options in 7 Steps’ or ’13 Easy Steps for Trading Options.’  This overly simplistic approach can often send the novice option trading investor down the wrong path and not [...]

OTS Performance Has Given You a Happy Thanksgiving – If Not, Join Today Free

So far 2013 has been an incredible year for option traders and members of our option strategies and trade alerts. Over the recent months our options trading has changed dramatically to accommodate the more active trader and for those with larger trading accounts so you can expand your option trading even more. We know that [...]

Fundamentals Rendered Irrelevant by Fed Actions: Probability Based Option Trading

The fundamental backdrop behind the ramp higher in equity prices in 2013 is far from inspiring. However, fundamentals do not matter when the Federal Reserve is flooding U.S. financial markets with an ocean of freshly printed fiat dollars. As we approach the holiday season, retail stores are usually in a position of strength. However, this [...]

Option Probabilities Spell Possible Trouble for Treasury’s

The incredible rally in equities in 2013 has begun to stir concern among many that the stock market is now in a bubble. We have entered the euphoric stage of this bull market and equity prices cannot and will not go lower according to some talking heads in the financial punditry. While chatter is starting [...]

Who Knows More: The S&P 500 Options or Financial Pundits?

By now the major media outlets have made sure to inform the public that the U.S. government is shut down, or partially shut down depending on your political perspective. Most financial pundits are looking to the recent past for clues about what to expect in the future. While the situation appears to be similar to [...]

Oil Prices, Syria, and the Probability of a Price Shock

Oil prices have been in the spotlight as the Syrian chemical weapons crisis became front and center in the media. As the political process has unfolded, price volatility in oil futures in both directions has been extreme. Oil prices have traded in a wide range the past two weeks between $104 – $112 dollars per [...]

Is 1,600 the Next SP500 Support Level?

Investors and traders alike are heading into the long weekend with a variety of potential risks facing them. The media has made us aware of the situation that is going on in Syria and that the United States may be planning a military strike. Since the current Syrian situation arose, we have seen some strong [...]

Option Trading Strategies and Current Market Setups Video

Good morning members! This morning we have received the GDP number and the unemployment data. Unemployment came right in line with expectations. However, GDP beat expectations handily. The U.S. marketplace reaction was fairly muted and virtually nothing happened in the equity futures pre-market. Ultimately I think there is a lot of inventory overhead and the [...]

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