Stan’s Option Challenge: Question #3

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.

Option Consulting by Stan Freifeld

You may not be aware, but Stan Freifeld of the McMillan Mentoring Program also directs our consulting services. It allows those who have questions regarding their options trading to have a professional trader provide insight, analysis and solutions to many trading situations.

Weekly Stock Market Commentary 1/31/14

By Lawrence G. McMillan

Are you having fun yet?  Volatility has returned, and the market is a daily dose of pain and pleasure, to either the bulls or the bears.  There are plenty of cross-currents now, and in reality, volatility hasn't even increased all that much (statistically).

Join Us for a Free Webinar: Introduction to Option Workbench 3.0

By Craig Hilsenrath

We are excited to announce the release of Option Workbench 3.0 on February 15th, 2014. I will be giving live demonstrations at the New York Trader's Expo in the McMillan Analysis booth (#5409) in the exhibit hall located on the 5th floor from February 16th through February 18th.

Overnight Session Spurs Volatility

By Lawrence G. McMillan

Yesterday saw steady rally for nearly the entire day.  That had some ramifications beyond merely an oversold bounce.  However, it’s what has happened overnight that has been extremely volatile and interesting.  First, just after yesterday’s close, Turkey announced that they were intervening on their currency, and S&P futures rallied 13 points from yesterday’s close.

Enhancing Option Portfolio Returns Using Probability and Statistics - Part 3

By Craig Hilsenrath

For the Introduction, an explanation of Expected Value, and Expected Value and Option Strategies refer to Enhancing Option Portfolio Returns Using Probability and Statistics - Part 1 &

Weekly Stock Market Commentary 1/24/14

By Lawrence G. McMillan

The incessant march upward has run into a bit of a roadblock. The 1850 level on the Standard & Poors 500 Index ($SPX) has proven to be stiff resistance. The failure of the market to clearly break through to new all-time highs has put the bears (temporarily?) in charge. There is most likely going to be a challenge of support at the 1810 level (see Figure 1) soon.

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

McMillan Interview at Explosive Options

Larry McMillan was recently interviewed by Bob Lang of Explosive Options where he discussed the finer points of options, volatility and measuring sentiment.  Watch the video by visiting

Weekly Stock Market Commentary 1/17/14

By Lawrence G. McMillan

If there is a theme to this market, it's this: it's overbought, but continuing to rise.  There is strong support for $SPX at 1810. Moreover, there is now resistance near 1850.

Now for the litany of bullish, but overbought indicators:  Equity- only put-call ratios are typical of this group.  Both ratios are declining, and that is bullish.  In addition, both ratios are at the lowest levels on their chart and that means they're overbought.

Lawrence G. McMillan's 2014 Stock Market Forecast

By Lawrence G. McMillan

Forecasting this market with the Fed doing what they’re doing is really a very inexact chore.  However, there are some historic parallels that can be drawn.  

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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