fbpx Blogs | Option Strategist

Blogs

Larry McMillan Stock Market Update Video 9/28/2020

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, September 28th, 2020.

Weekly Stock Market Commentary 9/25/2020

By Lawrence G. McMillan

The market is in a stair-step pattern lower. This is a relatively orderly decline, compared to the "smashes," if not "crashes," of Feb 2018, Oct 2018, Dec 2018 and March 2020. But the bears are in charge now that the 3280 level has been broken.

What’s Up With the A-D Line? (10:16)

By Lawrence G. McMillan

This article was originally published in The Option Strategist Newsletter Volume 10, No. 16 on August 23, 2001. 

Almost every day, some technician is quoted as saying that market breadth is strong – and, by inference, that there is an underlying positive tone to this market. The indicator that is often used to demonstrate this is the advance-decline (A-D) line – the daily difference between advancing and declining NYSE issues. Of course, we see the same figures. There have been more advances than declines on quite a few days in the last year or so – especially the last eight months. Yet the market continues to struggle. So where is all this supposedly positive action?

Larry McMillan Stock Market Update Video 9/21/2020

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, September 21st, 2020.

Weekly Stock Market Commentary 9/18/2020

By Lawrence G. McMillan

A significant battle has developed between the bulls and the bears. There is resistnace at 2425 and support at 3310-3330. A closing price breakout from that range should be significant, especially on a close below 3280. Unless there is such a breakdown, the $SPX chart can still be considered to be bullish.

A Volatility-Based Approach to The Iron Condor Strategy (14:07)

By Lawrence G. McMillan

This article was originally published in The Option Strategist Newsletter Volume 14, No. 7 on April 15, 2005. 

An “iron condor” (also sometimes simply called a “condor”) is the name applied to a rather basic strategy that has many adherents. In this article, we’ll define the strategy and give examples, but we also want to look at a possible way to improve upon the strategy by using a new product – $VIX options – which should begin trading soon.

The iron condor strategy is a fairly simple one – the sale of credit spreads both above and below the current (index) market price. Risk and reward are both limited, but rewards are more probable than the risks, assuming that all options are out of the money initially. Specifically, four striking prices are generally used, and thus the spread requires the payment of four commissions – making the strategy viable only for accounts with low commission costs.

Portfolio Protection Articles

By Lawrence G. McMillan

Given the current market climate and uncertainty surrounding the upcoming presedential election, it makes sense to consider hedging your portfolio. The following free articles from our archives can help you learn more about portfolio protection with options.

Larry McMillan Stock Market Update Video 9/14/2020

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, September 14th, 2020.

What Option Indicators Are Saying About This Market Now Webinar Recording (Sponsored by NAAIM)

By Lawrence G. McMillan

Join Lawrence G. McMillan to learn why certain option data is useful in helping predict broad market movements. Larry McMillan will discuss the current state of those indicators. He will share why put-call ratios are powerful, contrary indicators with a good track record of market prediction. He will also discuss why volatility derivatives and indices are useful, especially in determining extreme oversold conditions and buying opportunities, and also in discerning the trend of the broad stock market. Lastly, Larry will touch on the current state of market breadth and how it relates to market prediction as well.

Weekly Stock Market Commentary 9/11/2020

By Lawrence G. McMillan

The selling that began on September 3rd has gained momentum, and as the market has declined, confirmed sell signals have been registered in several areas. There is one major roadblock for the bears, though, and that is that the chart of $SPX is still in an uptrend. In my opinion the support at 3280 is the one that needs to hold. If it doesn't, then the $SPX chart will have succumbed to a bearish pattern.

Pages

Option Strategist
Blog Search

Recent Blog Posts

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.

-->