Posts by Jeff McAllister
Trading In A Sideways Market
For the past three months, the major market indices have tended to trade within a relatively tight range. This has made it difficult for traders to find stocks that are presenting any significant directionality. Take a look at the chart of the S&P 500 below: Notice that a significant level of resistance seems to have…
Read MoreUnderstanding Options: Exercise & Assignment
As an educator in the field of options trading, I’m often asked “what causes a short call or a short put to be assigned?” Before I can answer that question I need to briefly explain what an option is, some of the terminology used, and who the participants in the exercise and assignment process are.…
Read MoreWhat’s in your portfolio?
One of the benefits of being a coach for OptionsANIMAL is that I get to see the paper trading portfolios of our students. To say that I have seen some interesting trades and some interesting portfolios would be an understatement. Most of the time the portfolios and the trades are good. However, one area that…
Read MoreWhat’s in your portfolio?
One of the benefits of being a coach for OptionsANIMAL is that I get to see the paper trading portfolios of our students. To say that I have seen some interesting trades and some interesting portfolios would be an understatement. Most of the time the portfolios and the trades are good. However, one area that…
Read MoreExploration – Search, Scan, Twitter, News
What exactly is it that causes a stock’s price to rise or fall? Economists will tell you that it’s the market forces attempting to find the equilibrium point between supply and demand. So the next logical question then would be; what causes supply and demand to become unbalanced? The answer to that question is news.…
Read MoreDebit Spreads and Credit Spreads – What Are They and What’s the Difference?
In the world of equity options, there are two broad categories of spread trades; the debit spread and the credit spread. What are they and how are they different? In this article I will define each and touch on why a trader might use one over the other. Before I can define a debit or…
Read MoreStocks 101
So, what is a stock anyway? Buying a stock signifies buying a piece of the company it’s issued from. It’s an ownership position. Owning stock in a company means a piece of every desk, computer and most importantly a portion of the company’s profits belongs to you. Stock in a particular company can be bought…
Read MoreThe OptionsANIMAL method and risk management.
Risk management is a critical component of successful investing. Without proper risk management, investing becomes little more than a haphazard activity which is unlikely to produce consistently positive results. Proper risk management involves a commitment to disciplined trading. In this article I’m going to discuss two broad areas of risk management. The first area of…
Read MoreThe OptionsANIMAL method and risk management.
Risk management is a critical component of successful investing. Without proper risk management, investing becomes little more than a haphazard activity which is unlikely to produce consistently positive results. Proper risk management involves a commitment to disciplined trading. In this article I’m going to discuss two broad areas of risk management. The first area of…
Read MoreIn a world of breaking news, and uncertainty. The strategies you need to know.
Fiscal cliffs, debt ceiling debates, euro zone worries, and a slowing economy have investors wondering what they should do now… Buy and hold? Trade the fast burners? Buy gold coins and bullion? Go to cash? Just what exactly should an investor do in such uncertain times? When the day to day price action in the…
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