Natural gas and oil driller Chesapeake Energy (NYSE: CHK) is setting up for a move higher. The stock has formed a base at $14, and a series of higher lows on a climb to the year-long technical pivot at $20 sets up a potential breakout run. The wedge pattern seen… Read More
Analyst Articles
With a strong macro equity uptrend under way and a very low-volatility environment, this is the perfect time to make long option purchases. One stock that is setting up an attractive call option play… Read More
Third-quarter earnings season is almost finished, but one economic bellwether, FedEx (NYSE: FDX), has yet to report. The stock has traded in a $10 range for the past six months, but an… Read More
The power of options is evident in a stock substitution trade in Morgan Stanley (NYSE: MS). The stock is up about $2.25 since my recommendation on Aug. 29, an impressive 15% gain in just over a week’s time. The payoff on the deep… Read More
As you can see below, the CurrencyShares Euro Trust (NYSE: FXE) fell from $134 in March to $120 in August. A recovery to the halfway point of that decline at $127 would likely send desperate short sellers running for cover. A larger objective targets a move above $130. Read More
The recent bounce in volatility, a cost component in an option‘s price, has made premium-selling strategies more attractive. After a new five-year low in the CBOE… Read More
Pfizer’s (NYSE: PFE) 2004 peak approached $40 before a multi-year decline. But shares have been on a strong recovery from 2009 lows below $12 a share to nearly double that price today. The combination of the powerful trend and low volatility make… Read More
The banking sector has remained out of the news as overall market volatility dropped, falling to five-year lows last week. The decrease in fear is not only very bullish, but also makes a stock… Read More
The banking sector has remained out of the news as overall market volatility dropped, falling to five-year lows last week. The decrease in fear is not only very bullish, but also makes a stock… Read More
On July 30, I recommended a cash-secured put strategy in Facebook (NASDAQ: FB) in which traders sold FB Aug 22 Puts for $1. This setup was meant to allow traders to buy Facebook at a 10% discount from where it was trading at the time, or get… Read More
Options provide us with many strategies to take advantage of changes in stock prices with more precision than simply buying or selling shares. One basic strategy known as a straddle involves buying both a call… Read More