The Cuban Collar

Hedging your equity exposure can save you a significant amount in the case of a sharp turn lower. But it can also have substantial costs and lower your overall returns. Mark Cuban presents an interesting case on both sides of this argument. In November, Cuban came out and discussed his hedges (http://www.cnbc.com/2016/11/01/mark-cuban-defends-clinton-on-emails-i-dont-think-theres-anything-to-worry-about.html) going into the … Read more

Current Market Environment – Pt. 2 Earnings Season Update

We are now in earnings season and, therefore, many of the stocks showing up on scans (https://www.simplertrading.com/trading-tools/simpler-trading-scanner) have upcoming earnings. That doesn’t mean to avoid them outright, but it does caution traders about the risk of outsized moves when companies report. Overall, the market environment still favors the upside but there continue to be signs that … Read more

Current Market Environment

Current Market Environment

We are in the heart of earnings season and, therefore, many of the stocks we might want to trade have upcoming earnings. That doesn’t mean to avoid them outright, but it does caution traders about the risk of outsized moves which might not follow the script set out by technical charts. The indices and internals, … Read more

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Simpler Risk Management

You may think of yourself as a trader. Or you may fancy becoming a trader. But what you really want to become is a risk manager. That is arguably the most important job of any trader. There are many facets to risk management. And that is one of the reasons that I highly recommend keeping … Read more

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Financials Poised For Next Move Up

The financial stocks and ETF’s have already responded nicely to the policies of the new administration, and the Fed’s move to raise interest rates. Beginning in early November, after spending most of 2016 in a consolidation period, they broke out. In the month of December they paused and then consolidated again. However, they are setting … Read more

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Don’t Get Married To Your Positions

I used to receive hate-mail when I would write about a particular bearish play I was analyzing in the option markets. It always came from people who were long the stock that was in play. It shows just how strongly emotions come into this game of trading. It is human nature to look for confirmation … Read more