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The Option Strategist Newsletter Volume 23, No. 06 Preview

By Lawrence G. McMillan

This issue was published one day early, on Wednesday, March 26th. This is because of the AAPTA Conference in Austin (see page 10), to which I will be traveling on Thursday, March 27th (the usual publishing day).

Weekly Stock Market Commentary 3/27/14

By Lawrence G. McMillan

The Standard & Poors 500 Index ($SPX) has been bouncing around within a trading range for nearly a month now. There is resistance at 1880+ (the all-time highs) and there is support at 1840 (most recently tested a couple of weeks ago). There is validity to the theory that it is being wound up like a coiled spring, and could therefore explode with some force once the range's limits are broken.

Conflicting Signals: $VIX Spike Peak & Modified Bollinger Band

By Lawrence G. McMillan

Two weeks ago, as the market turned downward, a strong sell signal was generated by the “modified Bollinger Band” system.  Last week, when there was a strong reflex rally, we received a $VIX “spike peak” buy signal.  That system, too, is a powerful system usually.  So which one is right?  This article will explore the answer to that question.

The Construct of $VIX Futures

By Lawrence G. McMillan

We continue to get questions regarding why the $VIX futures are priced as they are, and how one should interpret that information.  This is a subject that we have discussed many times in the past, but it is probably worthwhile to review it again.

There are two significant pieces of data that one should always be aware of, when evaluating $VIX futures: 1) the relationship of the futures to $VIX itself,

Weekly Stock Market Commentary 3/21/14

By Lawrence G. McMillan

The market action in the last 10 days has been a complete whipsaw. Now, the chart of the Standard & Poors 500 Index ($SPX) shows the index to be in a trading range -- bounded by resistance at 1880+ (the all-time highs) and support at 1840 (last Friday's lows).

Equity-only put-call ratios remain on sell signals, even though the market has bounced back this week.

The Option Strategist Newsletter Volume 23, No. 05 Preview

By Lawrence G. McMillan

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

Coinciding Signals - $VIX Spike Peak & Modified Bollinger Band

By Lawrence G. McMillan

When one is using technical systems for trading, it seems logical to expect that when two or more systems are giving similar signals, the result should be better than when a lone system is generating a signal. But does an analysis of the results confirm that fact? In this article, we’re going to look at a couple of our own systems and determine when they had coinciding signals.

Introduction to Option Workbench 3.0 (Video)

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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.

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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