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OptionsANIMAL Blog

jeffm's picture

Boing!

Well, once again the market seems to have bounced off of support around the 1040 level on the SPX (1020 being the next level of support). We had bad economic data and WORSE economic data - but hey - it wasn't as bad as predicted! So, what is the market really reacting to?

I suggest to you that the market is caught in a range. That range seems to be 1020 - 1130 on the SPX. We don't drop below it, and we can't get above it... yet. At this point in time, the market just isn't sure WHERE we should be going.
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colinf's picture

OptionsAnimal Weekly 8/28/2010

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emilubailes's picture

Trader, Know Thyself!

Linda Raschke said, “Trading is ten percent learning about the market and ninety percent learning about you.” 
 
As we begin in our journey to become a master trader we may not give much consideration to our own psychology.  Yet, understanding ourselves is a critical step in becoming a successful trader.  There are several basic questions to be answered before you can structure your trading strategy. 
 
What’s my time horizon?
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EricH's picture

When does it make sense to exercise an option early?

When does it make sense to exercise an option early?

The answer is that it generally does not make sense - unless the option is:
a) Deep in the money and/or
b) Very close to expiration.

It is a worthwhile effort to "do the math" on exercising an option early.

Let's say that I bought RIMM stock at $75.00 (back in April when a short put was assigned.) As a smart Options Animal trader, I bought a protective put. (...and I have been trading those puts over the past few months.)
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colinf's picture

OptionsAnimal Weekly 8/21/2010

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jeffm's picture

The Summit Has Started!

Greetings from the W (which stands for WOW!) in Chicago!

Even before the Summit began, we had a full day. Yesterday we went to Think or Swim for an excellent tour - and discussion from some of their active floor traders. Interesting.... Then we went to a Chicago Cubs game (they lost... again), but we had a REALLY great time rubbing shoulders with students, coaches, support staff and even Dr. J Najarian.
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emilubailes's picture

TRADING WITHIN AN ENTITY

There are some definite advantages to trading within an entity, utilizing mark-to-market accounting. 

  • Wash Sales Rule does not apply
  • Capital Losses not limited to $3000 per year
  • Maximizes deductions
  • Shares your income with another taxable entity

 
There are corporations that specifically focus on establishing trading entities for individuals as well as do-it-yourself resources. 
 
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colinf's picture

OptionsAnimal Weekly 8/14/2010

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kennethbailey's picture

Developing a trading plan (con't)

In previous posts I’ve explored how to develop a trading plan.  I hope it has been helpful and you’ve gotten pretty far with it.
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jeffm's picture

The Summit is approaching! The Summit is approaching!

Can you believe that its only 10 days until the Chicago Summit begins?! We are going to have a really great time.

Cubs game, TOS tour, CBOE, and the most important part of all - the coaches presentations (all new...)
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