fbpx Blogs | Option Strategist


Weekly Stock Market Commentary 7/10/2020

By Lawrence G. McMillan

This week, $SPX overcame the previous resistance at 3155 and appeared ready to take off. But then it faltered again, at roughly the 3185 level. Hence it is still in a trading that extends from 2920 to 3230. A decisive breakout of that range in one direction or the other will likely signal the next large directional move.

Does It Pay To Diagonalize? (16:21)

By Lawrence G. McMillan

This article was originally published in The Option Strategist Newsletter Volume 16, No. 21 on November 8, 2007. 

In the past couple of weeks, I’ve read articles and heard options traders talking about a strategy that is apparently becoming more widespread: the use of long-term options in a position as the preferred hedge when selling near-term premium. These types of strategies generally fall into the category of “diagonal spreads.” While this isn’t exactly revolutionary thinking, it is a new era in the popularity of diagonals. As with any strategy, there are nuances that may not always be obvious to those inexperienced with using it. So, we thought we’d go over some of the benefits and drawbacks of using these strategies.

Larry McMillan Stock Market Update Video 7/6/2020

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, July 6th, 2020.

Weekly Stock Market Commentary 7/2/2020

By Lawrence G. McMillan

The S&P 500 Index ($SPX) has been bouncing back and forth in a trading range for several weeks now. So, for now, $SPX is trading between 2965 and 3155. A wider trading range could probably be justified as well: 2920 on the downside and 3184 on the upside. 2920 was the top of the April-May trading range, and 3184 would close the gap on the island reversal. Either would be significant for a potential breakout, but until that occurs, we can expect continued volatile price action within the current range.

Introducing: McMillan Spike-Peak Index Buy Signals

By Lawrence G. McMillan

We're proud to announce our latest charting indicator for www.Tradingview.com. The McMillan Spike-Peak Index Buy Signal is a must-have tool for both the active trader as well as the longer-term investor.  These long-only signals provide timely entries in both up-trending and down-trending markets.  The active trader can utilize these signals in the way McMillan has for well over 20 years -- through the use of leveraged options trades.

Larry McMillan Stock Market Update Video 6/29/2020

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market.

Weekly Stock Market Commentary 6/26/2020

By Lawrence G. McMillan

So we have a sort of standoff developing. It would have a bullish resolution if $SPX could rally to 3184 and close the gap on the island reversal. However, a further break below that support at 2965 would be to the bears' advantage. So, in the short- term we are waiting for a breakout to occur.

The equity-only put-call ratios remain overbought. The standard ratio continues to trade at or near 16-year lows, as both ratios remain on buy signals in overbought territory.

Q&A: Delta Neutral Positions (08:16)

By Lawrence G. McMillan

This article was originally published in The Option Strategist Newsletter Volume 8, No. 16 on August 26, 1999. 

Questions & Answers

Q: I would like to ask you about delta neutral trading which I have heard and read about. Could you give me a brief description, it's merits and drawbacks, and in what situations it is best used. K.T. 6/17/99

Weekly Stock Market Commentary 6/19/20

By Lawrence G. McMillan

A week ago, stocks were on their heels after one of the worst down days on record on June 11th. Prices rallied within a couple of days, but the negativity of that day still hangs over this market. If $SPX were to fall below 2920, that would be bearish. But as it stands, the $SPX chart remains bullish as long as the Index holds above 2920.

Equity-only put-call ratios continue to fall, thus remaining on buy signals. That will continue to be the case until they visibly roll over and begin to rise.

Larry McMillan Stock Market Update Video 6/22/2020

By Lawrence G. McMillan

Join option strategist Larry McMillan as he discusses the current state of the stock market and what our option-oriented indicators are saying.


Option Strategist
Blog Search

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.