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"Ready-to-Move" ETFs and Their Key Individual Stocks (Updating on Mondays and Wednesdays before the Market Opens)
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Five common mistakes you can avoid with a help of the in-depth "Technical and Industry Analysis" Reports: 1. Betting on a weakening stock in the industry. 2. Ignoring some evidences that the market is telling you. 3. Fighting an industry trend. 4. Ignoring all other potential picks in the industry. 5. Improper chart interpretation.
How to identify tops and bottoms in any market and find an option strategy that better fits in terms of risk and return.
Q. Are "Bullish Call Spreads" Less Risky Than "Buy Stocks"? A. Yes. The ‘bullish spread’ strategies have a clear advantage over the ‘buy stock ’strategy in terms of profit potential. A call bull spread is always a debit transaction, since a call with a lower striking price must always trade for more than a call with a higher price, if both have the same expiration date. Let's consider the following example...
We have analyzed all 33,691 bullish signals generated by the stochastic oscillator indicator for all US optionable stocks in 1999 and found that MACD has much higher prediction power than Stochastic Oscillator. It predicts price surge within the next five days after an occurrence with 68% probability compared to 61% probability for Stochastic Oscillator.
1. Subscribe to the SectorTrends Newsletter. 2. Log into your brokerage account and open the auto-trading page. 3. Select "OptionSmart" as an investor publisher. 4. Select "SectorTrends Spreads" and/or "SectorTrends Calls/Puts" as a service. 5. Allocate min $1,000 per trade. SectorTrends auto-traded since 2004!
Strategy in brief: Call option and put option are bought with the same usually at-the-money strike. When to use this strategy: you strongly believe that the stock moves far enough in either direction in the short run. Comments: • Buy higher/lower strike options if the position can encounter different probabilities of bullish/bearish movements of the stock. • Buy at-the-money options if those probabilities are almost equal.
Very Short-Term Signal (60-min chart)
BEAR
Short-Term Signal (daily chart)
Buy