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Stan’s Option Challenge: Question #9 (Free Daily Volume Alerts Month)

We all know that trading options is exciting, highly competitive, and can be very profitable. The key to long term and consistent profits in option trading is options education. The McMillan Mentoring Program, which is run by former Market Maker, white badge AMEX Floor Official, professional trader, and longtime MENSA member Stan Freifeld, can take your trading to the next level.

Stock Market Tops: A Historical Perspective

By Lawrence G. McMillan

I want to spend just a moment pointing out how these market tops can unfold.  One good example was in 2007.  The market had just made new all-time highs in July and everything seemed wonderful.  Volatility had been low (except for one hiccup back in February, 2007), but no one seemed worried.  Then, $SPX broke down sharply with a 30-point down day (yesterday was a 40-point down day for $SPX), and that unleashed the bears.

Weekly Stock Market Commentary 8/1/14

By Lawrence G. McMillan

The genie is now out of the bottle, and it's going to be very hard to put him back in again. $SPX has broken major support at 1950, and that changes things: the chart of $SPX is no longer bullish; it is now bearish.

Equity-only put-call charts continue to remain on sell signals. These put-call ratios will remain bearish until they roll over and begin to trend downwards.  It doesn't appear that will happen anytime soon.

Market Internals are Deteriorating

By Lawrence G. McMillan

Wednesday was a volatile day, with prices swinging back and forth several times during the day.  However, by the time that the dust settled, $SPX was virtually unchanged.  This is typical of the way that the market has been behaving recently.  In fact, if one takes a “neutral” look at the $SPX chart, it is possible to see a trading range, between roughly 1950 and 1980, over the past month.

The Option Strategist Newsletter Volume 23, No. 14 Preview

By Lawrence G. McMillan

We are going to have a slight schedule alteration for August. Since there are five Thursdays in July, and since our office is going to be closed at the end of August for three days, we are going to publish this newsletter on the first and third Thursdays in August. This allows us to keep the two-week spacing between issues without skipping an issue. Regular publication dates will resume in September. The weekly Hotline updates will continue to be issued as usual.

Is Breadth Giving A Warning Signal?

By Lawrence G. McMillan

We follow four main indicators, and they usually guide us in the correct direction of the markets. As noted elsewhere in this issue, price is the most important indicator of all (in this case, the price of the Standard & Poors 500 Index [$SPX]). However, the others – equity-only put-call ratios, market breadth, and volatility indices – are important, too. Usually, we want confirmation from price before acting on opposing signals from the other areas.

Weekly Stock Market Commentary 7/25/14

By Lawrence G. McMillan

$SPX has now traded at a new all-time intraday high for the last three days, and it closed at a new all-time high the last two. Those new highs have been confirmed by some of the other indicators, but some are still on sell signals. $SPX has support at 1950, and that has proven to be very strong.

Equity-only put-call ratios remain on sell signals. They have been steadily rising for nearly two weeks.

Larry McMillan Discusses the Current Market in his Benzinga Interview

Larry McMillan was recently interviewed on the Benzinga PreMarket Prep show where he discussed why insurance using options is important, the recent $VIX spike peak buy signal, the state of our indicators, common option trading mistakes and much more. Watch the interview below.

Q&A with McMillan: The Diagonal Collar

By Lawrence G. McMillan

The following customer question was featured in the most recent edition of The Option Strategist Newsletter

Weekly Stock Market Commentary 7/18/14

By Lawrence G. McMillan

Well, the market finally found something it couldn't shake off -- at least not right away -- on the geopolitical front. Normally, this wouldn't be a big deal, but an overbought, somewhat nervous market can react to this type of news dramatically, and it did. So what is the real overall effect?

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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