Options Trading Blog
Options Trading Tips and Strategies
S&P Emini Pivot points for 2.8.2013
The EU is Back in the News 2.7.2013
President of the European Central Bank, ECB, Mario Draghi, today warned about continued risks to the European situation. Tax hikes and upward pricing pressures on oil are just the beginning, because the data, according to Draghi, may be signaling economic weakness in early 2013. Considering the SPX is near all time highs, a pullback may be warranted if the European situation escalates…not to mention if CDS start to be mentioned in the headlines too.
Moreover, Draghi also warned that Euro area risks continue to be skewed to the downside. Basically, should there be an adverse shock to their economic situation, it would probably result in negative growth and ever feared deflation. Traders will definitely keep their eye on the EUR/USD to monitor the Euro situation.
The technical picture for the EUR/USD seems to be rather bearish. EUR/USD is roughly 1% away from its 50-day moving average. This level should provide a short-term support, for there is also slight trend line support there, but it will probably be short lived as momentum and fear gain traction.
Italian 5yr CDS are up 0.37% today.
Spanish 5yr CDS are up 0.16% today.
S&P Emini Pivot points for 2.7.2013
Apple & Google Pivot Points for 2.7.2013
John Voorheis
John Voorheis is the Strategic Operations Manager at KeeneOnTheMarket.com, where he oversees all partnerships and day to day operations. Prior to joining KOTM, John was the Director of Business Development for NYC-based BA Insight. He has over 5 years experience with technology firms, where he prepared and presented technical requirement analysis to Fortune 200 companies.
John is a proud alumnus of the University of North Carolina at Chapel Hill, holding degrees in Economics and Political Science. He can be contacted at John@KeeneOnTheMarket.com.
Company Overview
In 2011, Andrew took his knowledge and success to help others trade. He launched the LIVE trading room to assist traders with his “New Wave” of Trading using his two unique trading plans. These include going through a step-by-step process to evaluate unusual options activity and how to structure Earnings trades.
James Ramelli
James Ramelli is a trader and option educator at KeeneOnTheMarket.com, where actively trades futures, equity options, currency pairs and commodities. As one of the moderators of the Live Trading Room, Ramelli educates members on strategies, trade setups, and risk management while trading his own capital.
Ramelli regularly appears on Bloomberg TV, BNN, and CBOE TV, in addition to writing a weekly column for Futures Magazine and being featured in CME Group’s OpenMarkets as a guest contributor. Ramelli holds a B.S. in Finance with a concentration in Derivatives and Financial Engineering from the University of Illinois at Urbana-Champaign.
Andrew Keene
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Andrew Keene was an independent equity options trader on the Chicago Board Options Exchange for 11 years. During this time, he was a market maker in over 125 stocks including Apple, General Electric, Goldman Sachs, and Yahoo. From 2006-2009, Andrew was the biggest, independent on-the-floor Apple trader in the world. Currently, Andrew is actively trading futures, equity options, currency pairs and commodities. Andrew has become one of the CBOE’s most recognized faces in the media and financial community, making regular appearances on Bloomberg TV, BNN, CNBC, Fox Business, Sky Australia, and CBOETV. He is also a regular contributor for Bloomberg Radio, DailyForex.com, Trader Planet, Minyanville.com, and Jim Cramer’s TheStreet.com. Keene’s first book, Keene On The Market: Trade to Win Using Unusual Options Activity, Volatility and Earnings, published by John Wiley & Sons, is available now. Andrew received a B.S. in Finance with a concentration in Accountancy from the University of Illinois. He can be contacted at Andrew@KeeneOnTheMarket.com. |
Does Green Mountain Show Greener Pastures Ahead? 2.6.2013
The earnings whisper is currently listed at $0.71 with the street consensus only at $0.65, so many people are not convinced and hopping on the GMCR bandwagon. Think about this fact however, the only major threat to the GMCR produced Keurig coffee maker is the Strabucks Verismo, which has had soft sales at best. Since the debut of the Starbucks machine only 150,000 units have been sold, compared to that of 2.15 million average quarterly units sold of the Keurig. Currently 25 percent of the companies stock has been sold short, but with good earnings a short squeeze could be in effect as bears try and cover their positions before getting hung out to dry.
The stock has also rallied six of the last eight times from earnings and more importantly, three out of four in 2012. The one trend that I have noticed on earnings, is that it either rallies hard to the upside or sells off hard and with that in mind, I can execute a trade that I believe will be profitable. I believe the stock is weighted more to the bullish side, however I always want to define and have proper risk versus reward.