Blogs

Introduction to Option Workbench 3.0 (Video)

We are proud to announce the release of Option Workbench 3.0. This upgrade to Option Workbench puts even more power in your hands with these new features:

  • FREE delayed market quotes for equities, ETFs and options with the ability to upgrade to real-time for a modest price
  • Execute trades with select brokers or in your Option Workbench Virtual Account
  • Manage your option strategies the way option traders think
  • Monitor your positions' P&L, risk and expected value in real time.

Weekly Stock Market Commentary 3/14/14

By Lawrence G. McMillan

This stock market has been able to ward off even a modest correction since the fall of 2012. However, we are now seeing a chart breakdown accompanied by sell signals from some of our most trusted indicators. If the bears can't make some hay with this environment, I would be surprised.

Equity-only put-call ratios have rolled over to sell signals.

Short-Term Sell Signals Have Been Registered

By Lawrence G. McMillan

And so it begins.  Sell signals have been registered, and it is possible that more will follow. $SPX closed off nearly 10 points yesterday, as attempts to rally all afternoon eventually failed, and the index closed near its lows.  S&P futures have traded another 5 points lower overnight.  This activated the “modified Bollinger Band” sell signal.

Exiting a Put For Parity Near Expiration

By Lawrence G. McMillan

Often at expiration, an option trader will have in-the-money options that need to be either exited or rolled. Market makers know this and purposely widen the spreads in the market so that the bid for the option is below parity. On expiration day, the option has a value of at least parity so the astute trader must always make sure he exits the position at parity or higher. For a put, parity is the strike price minus the underlying price.

Announcing Option Workbench 3.0

By Craig Hilsenrath

We are proud to announce the release of Option Workbench 3.0! This upgrade to Option Workbench puts even more power in your hands with these new features:

Weekly Stock Market Commentary 3/7/14

By Lawrence G. McMillan

This week's action makes the $SPX chart bullish (how could it be anything else when trading at new all-time highs?).

There is no technical resistance for a chart at new all-time highs. There is support at 1850 (which had been resistance), then at 1825- 1835 below that.  It is our opinion that a close below 1825 would be quite negative.

Equity-only put-call charts continue to be bullish.

Spring 2014 Technical Analysis Conferences

By Lawrence G. McMillan

This is the time of year when many organizations have their annual conferences, many of which are open to the general public. The quality of the presentations at these conferences is far higher than at general trade shows, for the audience is primarily professionals, and so the speakers are of the highest quality.  

McMillan's Tools to Gauge the Stock Market (Video)

In this MoneyShow.com interview, Lawrence G. McMillan talks about "how he measures the market's overbought and oversold status." Larry discusses breadth oscillators and modified Bollinger Bands, and details calculations and provides signal pramaters. Watch the video at Moneyshow by clicking the image below.

Stan’s Option Challenge: Question #4 (Free Month of The Option Strategist)

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 Option Strategist Newsletter Volume 23, No. 04 Preview

By Lawrence G. McMillan

There will be a very slight alteration of our publishing schedule in March.  The first issue in March will be published on the normal day, the 2nd Thursday, which is March 13th.  But the second issue in March will be published one day early, on Wednesday, March 26th.  This is because of the AAPTA Conference in Austin (see page 5), to which I will be traveling on Thursday, March 27th (the usual publishing day).

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.
Visit the Disclosure & Policies page for full website disclosures.