Is Apple (AAPL) Oversold?

By Lawrence G. McMillan

This is an article about Apple, but in a more general sense it is an article about whether the “modified Bollinger Band” system can be applied to stock charts.

Weekly Stock Market Commentary 8/14/15

By Lawrence G. McMillan

It seems that no matter what happens -- technically, fundamentally, or volatility-wise -- $SPX remains trapped in its now-six-month-long trading range. Hence the $SPX chart is neutral.

Join Larry McMillan at The All-Stars of Options Trading at the NYSE

Larry McMillan is proud to announce that he will be featured in the TradersExpo's All-stars of Options Trading event in September at The New York Stock Exchange. Larry's will be giving one of his intensive option seminars on "Hedge Option Strategies That Actually Make Money." Other contributers to this 3 day event include Daniel Gramza, Todd Gordon, Russell Rhoads, Bill Ryan, and Sarah Potter. If you register by August 25th, you can take advantage of the Early Bird pricing of $495 (regularly $595). Find more information by visiting the link below:

Weekly Stock Market Commentary 8/7/15

By Lawrence G. McMillan

The stock market continues to hover in its trading range. Despite some promising buy signals from sentiment extremes in put-call ratios and $VIX, there was no follow-through by the Standard & Poors 500 Index ($SPX). We have often said -- and still maintain -- that price is the most important indicator. Regardless, as long as $SPX remains in the broad 2040-2135 trading range, the chart is neutral.

Further Thoughts on “Earnings” Straddles

By Lawrence G. McMillan

We have been operating an event-driven straddle buying strategy in advance of earnings for several months now, with mostly favorable results.  However, this week something happened that we haven’t seen before: the straddles increased greatly in value before the earnings were announced.

Weekly Stock Market Commentary 7/31/15

By Lawrence G. McMillan

The chart of $SPX is the least bullish of the indicators. SPX remains in the 2040-2135 trading range that has bound it for most of this year. Basically this is a neutral chart.

Put-call ratios are much more encouraging. A strong buy signal has been generated by the standard put-call ratio (Figure 2). The weighted equity-only put-call ratio is also bullish (Figure 3).

Market breadth remains mixed, with the NYSE-based indicator now on a buy signal, but the "stocks only" is not.

Top 5 Option Trading Books: Options as a Strategic Investment

Lawrence G. McMillan's market classic, Options as a Strategic Investment, was recently listed as one of the top five option trading books by The Option Prophet's Adam Beaty. He writes:

If you could only pick one book from this list to buy this would be the one you need to get. At over 1000 pages this book will be your option trading bible...

Read the entire review by visiting The Option Prophet.

The Option Strategist Newsletter Volume 24, No. 14 Preview

By Lawrence G. McMillan

With this issue, we attempted to return to the normal publishing schedule – the 2nd and 4th Thursdays of the month.  However, due to some scheduling issues, the full newsletter was not available until Sunday, July 26th, although the Hotline was published on time on Friday, July 24th.  

Weekly Stock Market Commentary 7/24/15

By Lawrence G. McMillan

$SPX now appears to failing at the top of the range, thereby remaining within the 2040 - 2135 trading range. Hence, the $SPX chart remains neutral as long as it's in that trading range.

Put-call ratios are mixed, but generally are in an oversold state. The standard ratio continues to rise and is thus on a sell signal.  The weighted ratio, however, has rolled over to a buy signal.

$VIX Weekly Futures Begin Trading

By Lawrence G. McMillan

The CBOE has listed $VIX weekly futures – their third attempt at a weekly volatility product that might compete with VXX weekly options.  Trading began on July 23rd.  

It is estimated that options on the new $VIX weekly futures will begin trading in three or four weeks, although that isn’t set in stone.  Certain details have to worked out with the OCC, such a margin requirements.  Typically, in the past, those things have taken three or four weeks.

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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