The Options Market Building Bullish Case for Gold Stocks

If there is one thing that gold and gold stocks like, it’s stagflation. Stagflation is when growth is flagging, and debt and monetization are rising. While the Fed is on the path of tightening in the coming year, the spigot is still open and the raising of the debt ceiling is certainly not deflationary. With…

Candlestick Patterns 101: Stick Sandwich

If you’ve been following what’s been happening in the S&P 500 over the past week, it looks like it’s sandwiched between a rock and a hard place. In candlestick terms, it’s referred to as a Stick Sandwich. The initial sandwich that began on September 30 has added more toppings in the last couple days compared…

IYR Option Activity Shows Renewed Bearish Interest

If you were following iShares US Real Estate ETF (NYSEARCA: IYR) you likely noticed a large option trade that included two expirations and 4 strikes. This type of trade isn’t unusual, but it is significant because of its size and direction. We’ll take a closer look at the trade in just a moment, but to…

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…