Candlestick Patterns 101: Bullish Breakaway
Sometimes you experience a significant amount of selling, only to find buyers rush in. That should sound relatively familiar after what we experienced this past week. There probably isn’t a more representative candlestick pattern than a Bullish Breakaway. Bullish Breakaway Basics As you’ll see in the description, Bullish Breakaway’s aren’t the most common pattern. However, […]
Candlestick Patterns 101: Advance Block
Candlestick patterns like the Advance Block are all about short-term reversals in the trend of the price. When you have a period of significant selling, knowing when to go long is important. However, the amount of confirmation needed to go long can vary. With any setup, it’s about risk, reward and probability. The better the […]
What Does the Options Market Know About Micron Earnings?
There is a fair amount of randomness to an earnings announcement and Micron Technology Inc (NASDAQ: MU) is no different. It seems that price does what it wants a lot, which can be really difficult to trade. At TheoTrade, we use the Expected Move Indicator to understand market expectations. However, you still have to make […]
What is the Options Market Saying about Debt Ceiling?
The first hurdle in the debt ceiling saga is the September 30 deadline for funding Federal agencies or face a partial government shutdown. This would mark the second partial shutdown in the last three years. While the threat of an outright default is likely a non-issue, it is interesting to see how traders are positioning […]
Candlestick Patterns 101: The Candle Body
History of Candlestick Patterns Candlestick Patterns were originally created in Japan during the 1700’s. They were used as a means of trading rice warehouse receipts—which represented the first-ever futures contract. They are referred to as candlestick, or candle, patterns because of the way the open, high, low and closing price is represented graphically. Candle patterns […]
Candlestick Patterns 101: Dark Cloud Cover
What’s more ominous than dark clouds forming on the horizon. The temperature drops and the winds pick up as you sit back and await a torrential rain, hail or worse. If the skies turn green, you know that you better run for cover. From a price standpoint, what is the equivalent of dark clouds on […]
SoFi Eye’s Bank Charter as Option Traders and Analysts Buy
The addition of a bank charter for SoFi only adds to the company’s “flywheel” marketing approach. SoFi uses their UI/UX tools to draw customers into other products within their ecosystem. The addition of bank balances only helps with the add-ons because of the share of wallet already being captured. SoFi Technologies Inc (NASDAQ: SOFI) advanced […]
FCX Sees Big Surge in Bullish Option Activity
One of the companies that could be impacted the most by semiconductor shortages and potential derailing of the global housing market is Freeport-McMoran Inc (FCX). The stock has been sliding and following the pathway of one of its biggest products in copper. Copper was able to find a little price support intraday but finished virtually […]
How to Hedge DURING a Market Sell-Off This Week
In case you missed the all caps, this isn’t how to hedge in the event of a sell-off. This is about how to stop the bleeding as the market is in the midst of a sell-off this week and you’re a bit too uncomfortable with your exposure. At TheoTrade, we teach a lot of preemptive […]
TMUS Catches a Bid as Option Activity Looks for Upside
After a nice bullish trend in the spring, T-Mobile US Inc (NASDAQ: TMUS) has been wilting in the summer heat. The share price has especially seen it’s price fall on high volume over the past six days. However, that trend broke today. Today’s rather underwhelming move may not create a lot of confidence to go […]