Here Are Some Hard Truths About Trading - And Current Market Analysis

Traders, there are few things I needed to get off my chest about trading, trading analysts, trading marketers, and this industry in general. Once the 10-minute rant is over, I jump into the markets to show you some interesting dynamics that could be indicating a rate hike is coming. I look at the sector analysis, the Yen, NASDAQ, and a few others.

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Plan Your Trade, and Trade Your Plan,
Todd Gordon

This Sector Breakdown Is Bad News

Traders, there was a very weak close in the NASDAQ yesterday and I think this key sector has been lost and is set to push stocks lower. We're still short small cap IWM due to its under-performance to the other major stock indexes when using Fibonacci retracements.

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Plan Your Trade, and Trade Your Plan,
Todd Gordon

But They Said To Never Do This Trade?!

Conventional wisdom says that counter-trend trading is a losing game. I agree if you're using conventional tools! Using leading indicators that anticipate price movement allows you to construct high reward, low-risk entries. Join me as you take you through this options trade in the Russell 2000 ETF "IWM."

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Plan Your Trade, and Trade Your Plan,
Todd Gordon

This Indicator Just Made A 52-Week High

With the Fed firmly on hold, stocks are in quarter-ending ramp job helped by a falling dollar. We take a spin around the markets and key sectors leading us and then finish with Fibonacci analysis of our new option position in the US dollar ETF.

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Plan Your Trade, and Trade Your Plan,
Todd Gordon

Unlocking The Power Of Covered Call Writing – Applying Theory To Empirical Practice

Introduction

Leveraging covered call options in opportunistic or conservative scenarios may augment overall portfolio returns while mitigating risk in a meaningful manner. In brief, options are a form of derivative trading that traders can utilize in order to initiate a short or long position via the sale or purchase of contacts. A call option is a contract which gives the buyer of the contract the right, but not the obligation, to buy the underlying security at a specified price on or before a specified date. The seller has the obligation to sell the underlying security if the buyer exercises the call option. A call option gives the owner (buyer) the right to buy the security at a specific price is referred to as a call (bullish); an option that gives the right of the owner to sell the security at a specific price is referred to as a put (bearish). In the event of a covered call, this is accomplished by leveraging the shares one currently owns by selling a call contact against those shares and collecting a premium. I will provide an overview of the theory vs. empirical practice based on my covered call activity during Q1 2016. Here, I’ll provide details focusing on optimizing stock leverage via covered calls. Emphasizing the ability to sell these types of options in an opportunistic, aggressive and disciplined manner to generate liquidity while accentuating returns and mitigating risk via empirical data.

A Few Characteristics To Keep In Mind For Covered Call Options Trading

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