Why Are the Put-Call Ratios Split?

By Lawrence G. McMillan

...Equity-only put-call ratios continue to remain split, with the standard on a sell, and the weighted on a buy.  We plan to delve into why this is happening – in an article in this week’s Option Strategist newsletter – but the short answer is that traders are buying out-of-the-money, low-priced puts for protection.

Weekly Stock Market Commentary 5/16/14

By Lawrence G. McMillan

It is hard to imagine a market any more perverse than this one. Once again, there has been a failure to break out on the upside, despite some favorable (although not unanimous) technical conditions. Now $SPX has pulled back into the previous trading range, whose limits of 1810-1900 are more secure than ever.

Upside Breakout All But Confirmed ($SPX)

By Lawrence G. McMillan

Tuesday saw very little follow-through to Monday’s strong day, and that was disappointing.  Although $SPX and other major averages made marginal new all-time highs, it certainly didn’t look or feel like a good day. $SPX has technically broken out, and it has support all the way down to 1880, or even slightly below.

Weekly Stock Market Commentary 5/9/14

By Lawrence G. McMillan

The stock market continues to frustrate all but the most short-term traders.  Anyone looking for a trend to develop has not been able to find one in weeks.   Wednesday's low at 1860 is support, as is the previous week's low at 1850.  Below there, the April lows at 1810 are a major support level.  Resistance, however, exists all throughout the 1880-1900 area.

Stan’s Option Challenge: Question #6

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.

Weekly Stock Market Commentary 5/2/14

By Lawrence G. McMillan

The stock market is stalled at the high end of its trading range (1810-1900). There is near-term support at last Monday's low of 1850.

Equity-only put-call ratios remain split.  The weighted ratio continues to decline from a recent high, and that means it's on a buy signal, while the standard ratio remains on a sell signal.

Neutralizing Greeks with Stan Freifeld- Option Education Video

Learn to put on the option position you really want with this one hour+ educational option video. Join Stan Freifeld, Director of Corporate Services and head option mentor at McMillan Analysis Corp., as he discusses his progress on a concept that he refers to as Neutralizing Greeks. Before entering a trade, traders will (or at least should) use the Greeks to determine where the significant risks are lurking.

Using Options to Generate Income and Protect Stocks Interview by Stan Freifeld

Stan Freifeld

MAC Mentoring head director and instructor Stan Freifeld was recently interviewed on Ken Robert's Bulls and Bears Report. Stan discusses some basic option strategies you can use to generate income and protect your stocks. Listen to the interview below.

The Option Strategist Newsletter Volume 23, No. 08 Preview

By Lawrence G. McMillan

There is only going to be one issue published in May – on the 4th Thursday, May 22nd.  We are planning for that to be a “double issue.”  The reason for this change in the publication schedule is an extensive travel schedule from April 30th through May 15th, which will not allow time for publication of a formal issue.  The weekly Hotline updates will continue throughout this time, without interruption.  

Volatility Index Crossovers ($VXV $VXST $VIX)

By Lawrence G. McMillan

Recently, it came to light that some traders follow the 90-day $VIX (Symbol: $VXV) because when the “regular” $VIX exceeds the 90-day $VIX, worthy market signals are generated.  Recently (Volume 23, No. 4), we discussed what happens when the Short-Term Volatility Index ($VXST) crosses above $VIX.  There are some similarities in these two cases.

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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