Monthly Archives: April 2010

Ichimoku Stock Oil BBG Trade Setup – 4/30/10

Posted on April 30th, 2010 by

BBG has been consolidating for awhile now.  The weekly Ichimoku chart looks like it is setting up for a little break out.   Therefore, we are going to find a low risk option for this trade.   We want it a low risk because we are “jumping” the trade early.

 

Below is the weekly chart.  Notice, the Chikou will be coming out of price bullish by end of this week/next week.

 

Here is the option we are looking for.  We are going to try for 0.30/contract.   If not, you can try 0.35/contract later.

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not …
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Ichimoku Stock Option MTW: Trade Update Close 4-28-10

Posted on April 28th, 2010 by

Either you have exited 75% or 95% of your contracts two days ago.   The remaining, you left for the earnings announcement that took place after market YESTERDAY.  Earnings was not great so the stock went down at open.

At open, due to volatility, you could have gotten out at 0.50/contract which is at breakeven.   If you missed it at open then you could have closed it out at around 0.40/contract.   Now, it is around 0.35/contract.   Notice, you did not lose the value of your contract?   This is because we bought the options “cheap” when volatility was very low.   Due to earnings, volatility drastically increased which allowed the option price to have value within it even though the stock moved down.  We lost delta dollars but vega dollars allowed us to get out of breakeven on the remaining contracts we had.

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not …
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Ichimoku Gold Futures Trade Update: 4-27-10

Posted on April 27th, 2010 by

Mini Gold Futures moved up nicely today.   Current price is 1167.80.   We are close to the high from 4/12/10 now.   If you are a conservative trader, you are going to tighten your stop drastically, not to give back the profits to the market.   Therefore, the conservative trader can use the Tenkan Sen or Kijun Sen off either the 120 minute or the 30 minute timeframe.   For the aggressive trader, you will exit out 75% of your positions here and let the other 25% of your positions “run” until the trend is over.    We will use the Kijun Sen off the 240 minute timeframe minus a buffer.   The KS on the 240 is 1146.6.

 

 

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits …
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Ichimoku Stock Option MTW: Trade Update Setup 4-26-10

Posted on April 26th, 2010 by

The option price is now at 1.30 before earnings after market Tuesday.  It was purchased at 0.50/contract.   You should remove 95% of your options at this time and let the remaining 5% ride through earnings.   If you are aggressive, you will take 75% off instead of 95%.

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose


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JDSU Ichimoku Stock Option Bearish Setup: 4-26-10

Posted on April 26th, 2010 by

JSDU has moved up drastically for the last couple of months.    We basically have moved back into the consolidation zone from last year before it broke down and then started to move up slowly.   Today, we are at the 52 week high and earnings is coming out.   To buy calls, it is expensive since this instrument has been moving up continiously for a long time.   However, to go bearish, it is cheap to do so especially if we choose out of the money put options.

Here is the daily chart for the stock

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Here is the risk graph for the option.   The implied volatility is around the average for the last 2 years.  Therefore, we don’t have to worry about volatility too much.   For this trade, we are hoping to make money solely off the delta.   With earnings, we may get some from vega but we aren’t going to count on it.     Remember, we are going against the trend since this is a COUNTER TREND play.  Therefore, keep your risk and option contract size very low.  T  

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be …
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Ichimoku Gold Futures Trade Setup: 4-20-10

Posted on April 20th, 2010 by

Mini Gold Futures (YG) looks to be setting up for a bullish trade to retest the high.  We are going to setup a beakout trade with a tight stop.   Once we enter the trade, we may change the stop to the Kijun Sen off the daily depending on how the charts look.

 

 

You can enter buy purchasing stock or looking at options.  Your stop will be the Kijun Sen minus a buffer.   Below is the risk graph for ONE possible option choice.   On this option choice, we are looking for a pullback, where the option price will go from a mark of 0.80/contract to 0.50/contract for the Jun 16 call options.  It may not pullback enough to change the options so you have to watch it.  The other option is to look at the June 17 calls which right now are being priced at 0.45/contract mark.    The delta is 0.25 so if the stock moves up $1 we are looking at 50%+ which is good.  Also, volatility should be increasing since earnings is coming up


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APH Stock Ichimoku Trade Update

Posted on April 20th, 2010 by

APH earnings was very good today.  Therefore, it is probably going to up $3.00.   Therefore, we should get a good vega and delta rush for some nice upward movement.  Profits should be taken based on your money management

You should close the trade if you like

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose


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Is it time to short the US markets? Ichimoku Chart analysis 4-19-10

Posted on April 19th, 2010 by

Markets drastically moved down Friday.   Everyone is now thinking of shorting the market.  We are not going to let emotions take the best of our trading.  We are going to let the technical analysis determine what we should do in our trading.

 

See below for the daily chart analysis.   Price is now between Tenkan Sen and Kijun Sen.  Right now, we should not be adding any bullish positions in the stock markets.   However, if you are in a trade, you will not be taking it off unless you instrument stop takes you out.  For the E-mini SP500 futures, major support is at 1173.50.   Therefore, if this market goes down further, we need to see what will happen at this level.

 

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any …
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AUDJPY Forex Currency Ichimoku Trade Entry Removed

Posted on April 19th, 2010 by

Our buffer was good enough were we didn’t get into the trade before it drastically moved down.  We are going to remove this entry and look for another bullish setup.   Weekly charts still show this currency is still bullish so we are still looking for bullish trades.

For EDUCATIONAL USE. Commodity Futures Trading Comis

sion, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose


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AUDCHF Forex Ichimoku Currency Trade Exit 4-19-10

Posted on April 19th, 2010 by

We got “clipped” last night on AUDCHF.   What does it mean to be “clipped”?  Basically, it means we didn’t have a big enough buffer to cover the scenerio when they “run stops”.  

See chart below.

We exited the trade at our stop last night. 

 

 

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose


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