Category: Newsletter

  • Dividends and Its Effect on Option Prices

    What is a Dividend When a company earns profits it distributes its profits to its shareholders. Instead of reinvesting this profit in the company or acquire another company, this profit is shared with the investors as either cash or stock. There are however, three kinds of dividends a corporation can declare. 1 – Cash Dividend…

  • Technical Analysis of DLTR and MNST

    “My first rule is to buy only something that is quoted daily.” Gerald Loeb  Technical Analysis of DLTR DLTR was going up for last few days and looked bullish. We knew earnings coming up on November 22nd.

  • Federal Open Market Committee Effect on Stock Market

    The FOMC (Federal Open Market Committee) schedules eight meetings per year in Washington D.C. , one about every six weeks. Currently FOMC (Federal Open Market Committee)  meeting is being held on July 31st-August 1st. As a trader it is important to know when FOMC is meeting and how Federal Open Market Committee Effect on Stock Market and the…

  • Understanding Stop Price

    “Your protective stop is like a red light. You can go through it, but doing so is not very wise! If you go through town running every red light, you probably won’t get to your destination quickly or safely.” Richard Harding Stop price given is for reference purposes to watch the trade as it could…

  • Garage For Sale

    “I may be desperate for money but not that desperate that I sell part of my American Dream.” Noshee A while back my home was visiting me from overseas. On Saturday morning we took off from my home. I was taking him to Venice beach. While we were still driving in the neighborhood, he suddenly jumped…

  • Videshi Babu in Town

    The other day I went to FedEx store to pick up my order. The attendant asked me “Under what phone number did you place your order.” I gave him my 10-digit number. He said “Is that it?” So I looked at him and replied “Yes that is it, we are not in China.” He chuckled, picked…

  • Technical Analysis of SINA

    “It’s easy to get married in a bull market.” Anonymous  Technical Analysis of SINA SINA bouncing off 50-day moving average. Our target $81  Technical Analysis of TWX TWX had been popping up on our radar for a week. On Friday (October 21st) it really popped up again. There were lot of big buyers in it…

  • Strategy for Entering the Trade

    Welcome to our fourth Tips! Earlier we talked about the difference between trading stocks and options. Today, we’re going to talk about entering the trade via Gap. Trading gaps is one of our favorite Strategy for Entering the Trade. So lets begin. There are essentially three ways that the price of a stock can open…

  • Technical Analysis of OXY and X

    “The best way to take a punch is to look at it. It is the punches you don’t see that knock you out.” Ronda Ronsey  Yesterday we sent you alert informing you that we bought UAL Calls. We are still holding and in profit.  This morning we bought NFLX and FB Calls.  We sold NFLX…

  • Tommy and The Grasshopper

    I remember my life since I was five years old. Throughout my life various angels appeared. Sometimes several in just one week. These angels guided me, helped me and got me out of trouble. They helped me in my trading career. Below is the story of one angel and his name was Tommy. One time I got a job in the…