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 Volatility Index… 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… Read More

Today, I want to cover a popular market ETF that is a strong buy based on a momentum indicator that most traders ignore and a… Read More

Europe is in the news again, although it seems like the continent’s financial turmoil is always in the news. European Central Bank (ECB) President Mario Draghi was quoted in The Wall Street Journal as saying, “It… Read More

Summer is just about over, and that means the lull in the markets we’ve seen over the past several weeks also is about to cease. Once traders return to work after the Labor Day holiday, there’s sure to be more action, more… Read More

Former Federal Reserve Chairman Alan Greenspan may be most remembered for the phrase “irrational exuberance.” In December 2006, he asked if stock prices were too high, saying, “But how do we know when irrational exuberance… Read More

The banking sector has remained out of the news as overall market volatility dropped, falling to five-year lows in late-mid-August. 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 Facebook 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 paid not to own it… Read More