The Ultima Income Generator Guide to Selling Options Part 2
I hope last week’s Part 1 blogpost led you to want to learn more about the Ultima Income Generator. If you missed it, you can click here to review the origin story of Ultima. Now that we understand the name and the person that developed it, let’s talk about selling options. Everyone Loves High Probability…
The Ultima Income Generator Guide to Selling Options Part 1
There has been a lot written on selling options to generate income and trade in a high probability fashion. However, there has never been an approach that adequately addresses the risks of selling nor approached it quantitatively like this. The Ultima Income Generator is unlike anything you’ve ever studied on the subject! The Ultima strategy…
The Rubber Band Trade for a New Year
You’ve probably heard the term, “what goes up, must come down.” That makes sense when gravity is considered, but what about asset prices? Is there a certain financial “gravity” that plays out for stock trades? Absolutely! For financial assets like stocks, valuation is something that will eventually impact the price either positively or negatively. If…
NVDA Sees Dark Cloud Cover Ahead
The Market failed to continue its advance today as it wilted following the initial opening exuberance. I'm not sure that it means we're heading down from here, but a number of stocks are in the process of forming Dark Cloud Cover candle formations today. The reversal is potentially more meaningful for these particular stocks. However,…
Candlestick Patterns 101: Side-by-Side White Lines (Bullish)
If today's price action is any indication, it appears the Santa Claus rally is happening this year. That means that many stocks that are already extended after last week's rally will become even more extended. As a result, the Side-by-Side White Lines pattern may be a pattern is Sant's bag of stocks that are being…
A Year Without Santa?
As the pre-Christmas period ends today, investors begin to look forward to the new year and the potential for a Santa Claus Rally. While the concept of a Santa Claus rally has been corrupted to some degree, the next seven days could be big for more than just 2021 window dressing. That’s because Santa’s delivery…
Early 'Santa Claus Rally' Abandoned Babies (Figuratively)
I get it, the title is a little morbid, but how else do you introduce the Abandoned Baby candlestick pattern? You could call this pattern "Buddy" after the movie "Elf," but he was more of a stowaway. No matter how you view the price action today, it is a significant indication of support and the…
GSK Option Bulls Get Head Start on Cup & Handle
Pharma has been one of the best performing industries in recent weeks and GlaxoSmithKline PLC (NYSE: GSK) has been among the top performers. Today, it appears that call buyers are stepping into the stock as it tests its resistance near $43.50. As the price rallies, it is close to confirming a cup-and-handle price pattern. It…
Price Patterns 101: Gaps (Breakaway)
Gaps are a frequent occurrence in the price of stocks. That's because they're closed for most of the trading day. Sure they have extended hours trading, but most people only look at the cash session. As a result, the movement that occurs overnight has an impact on the price the next morning. Even without extended…
Candlestick Patterns 101: Doji (Southern)
The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) nearly formed a doji yesterday as the close was only slightly higher than the open. The early indication of balance reversed following the FOMC policy statement today. That's the early indication this pattern can provide. It's about balance after a sell-off and the exhaustion as the price…
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