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I recently received an email from a subscriber asking about best practices in exiting options positions:

How do you automate managing risk on options if you want to define it through the base stock price? E.g. you have calls on MSFT that you...

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There are bullish setups all over the place. My friend Aaron couldn't have said it better:

<----- drowning in setups

— Aaron (@ATMcharts)...

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As I do at the end of every month, I scan across my portfolio of open positions and observe any positions which hold options nearing expiration in the upcoming month. Today being October 31, I'm setting my sights on November expiry.

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I've been noticing some mostly sideways action in the oil & gas space in recent months. And with premiums somewhat elevated in options, delta neutral income strategies become extremely appealing.

Selling premium when options volatility is...

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I found a stock where earnings have come and gone with little impact upon the overall trend, volatility collapsed (predictably), and now the only question left to ask is: when does the Santa Rally begin?

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One of our bigger directional wins this summer/fall is showing signs of taking a breather, but traders with a memory are still keeping a bid under options prices. This is setting up the potential for a nice "income trade." When volatility is high (and...

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The S&P 500 is back near highs. Call me crazy, but bullish setups in this environment with low volatility in the options get my antennae up for my favorite bullish strategy -- the simple long call. (Keep it simple, slugger!)

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Earlier in the week, JC & I were chatting online about some possible trade opportunities, and we had the following riff on Microsoft $MSFT:

JC: Hey, $MSFT long straddles. Sean: You in? or are you asking if it's a good idea? JC: I think it's...
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A funny thing about Gold is, people who have any kind of opinion on it are either EXTREMELY bullish, or EXTREMELY bearish. There tends not to be any middle ground. No surprise it is such a politicized instrument.

Well, I don't care about any...

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Risk management is Rule #1.

Last month, I put a trade on that didn't work out. Believe me, it happens (shocking, I know! /EndObviousSarcasm). There was a level that invalidated my thesis and it was breached. I don't fight with price...

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Geez... the calendar turned into October and traders are acting like Halloween is already here! The up-and-down trading action so far in the first three days of October can be downright frightening if you're chasing every whipsaw in this schizo tape...

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Ok, today's title is a cheeky play on the ticker symbol I'm trading today. I couldn't help myself.

Today I'm getting into a low conviction trade, but shifting the probabilities in my favor so that even if I'm wrong, I still have a good chance...

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It's that time again where we start heading into the next monthly expiration cycle and I review any options positions that remain open which might require some adjustments, monitoring, or closing before we get too close to expiration.

The...

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Sometimes, the charts set up where one could make a case for a consolidation being on the cusp of breaking out. One such beleaguered company appears to be doing just that. If there's any follow through, there is blue skies ahead and I've got a play...

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I love it when steady dividend payers breakout to all-time highs. What's better than a stock breaking into blue skies and paying you a dividend to hold on? In the recent All Star Charts monthly conference call, JC uncovered an opportunity in an...

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All else being equal, when deciding between two or three viable trades, I'll often choose the one that offers me the best opportunity to neutralize my "greeks risk." Meaning, if my overall portfolio is leaning a little long delta, I might favor the...

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