$AAPL - APPLE real winning pattern - a must look

THIS WAS APPLE A FEW WEEKS AGO - NOW WE HAVE THE SAME SET UP WILL THIS HAPPEN AGAIN??? TOMORROW WE SHALL SEE!!

Take a look at the second image and the 132 size (13,200 shares) on the ask - is this a repeat situation - will it open at 600 and close at 620???? WE SHALL SEE - IF SO HAVE A REAL WINNING PATTERN HERE!!

$KCG called this one just took a little longer than expected

Here is what going on with KCG IMO - Stock plummets - everyone stuck with huge margin calls - they can delay and stretch it a month and have to either sell it or come up with $$$$$. Usually its sold at lowest levels - The big players do this on purpose to hold it down and collect all this cheap stock then in a week or two after the month is and your stock is gone it runs right back up close to where it plummeted  Your like WTF - I just lost all my money and a month later after I sold it's right back. A prime example is ES - look at the chart on this and the chart on KCG and the timelines.
KCG BUY TARGET = 2.75 to 2.85 - stop loss 2.40
KCG SELL TARGET = $5.50 to $6.00

Nikkei 225 in breakout mode - chart pattern called it

Nikkei 225 breakout happened

Will be looking for stocks to capitalize on such a move.

AAPL after hours signal - the stock opened up 12 points and ran from 526 to 567

Level 2 Screenshots and TELLS of a $UVXY Trade

The following screenshots are of level 2 trading UVXY today. 

The setup signals happened - Do you notice the signal? 

The stock ran from 21.80 to 22.00 in 10 minutes -  most people would be buying into the run at 21.90 and not getting enough of a run for a profit to sell as it reverses and goes back under the buy price. The signals in the level 2 tell you when to BUY and when to SELL. If you dont recognize your always on the wrong side of the trade. Start getting better and learn how to read the level 2 and stop making mistimed trades. Email me at richlender@gmail.com with any questions you have.

Are you suffering a loss but holding - covered calls may be right for you

The covered call is a strategy in options trading where by call options are written against a holding of the underlying security.

Covered Call (OTM) Construction

Long 100 Shares Sell 1 Call

Using the covered call option strategy, the investor gets to earn a premium writing calls while at the same time appreciate all benefits of underlying stock ownership, such as dividends and voting rights, unless he is assigned an exercise notice on the written call and is obligated to sell his shares. However, the profit potential of covered call writing is limited as the investor had, in return for the premium, given up the chance to fully profit from a substantial rise in the price of the underlying asset.

Out-of-the-money Covered Call

This is a covered call strategy where the moderately bullish investor sells out-of-the-money calls against a holding of the underlying shares. The OTM covered call is a popular strategy as the investor gets to collect premium while being able to enjoy capital gains (albeit limited) if the underlying stock rallies.

Covered Call Payoff Diagram

Limited Profit Potential

In addition to the premium received for writing the call, the OTM covered call strategy's profit also includes a paper gain if the underlying stock price rises, up to the strike price of the call option sold.

The formula for calculating maximum profit is given below:

• Max Profit = Premium Received - Purchase Price of Underlying + Strike Price of Short Call - Commissions Paid
• Max Profit Achieved When Price of Underlying >= Strike Price of Short Call

Unlimited Loss Potential

Potential losses for this strategy can be very large and occurs when the price of the underlying security falls. However, this risk is no different from that which the typical stockowner is exposed to. In fact, the covered call writer's loss is cushioned slightly by the premiums received for writing the calls.

The formula for calculating loss is given below:

• Maximum Loss = Unlimited
• Loss Occurs When Price of Underlying < Purchase Price of Underlying - Premium Received
• Loss = Purchase Price of Underlying - Price of Underlying - Max Profit + Commissions Paid

Breakeven Point(s)

The underlier price at which break-even is achieved for the covered call (otm) position can be calculated using the following formula.

• Breakeven Point = Purchase Price of Underlying - Premium Received

Example

An options trader purchases 100 shares of XYZ stock trading at $50 in June and writes a JUL 55 out-of-the-money call for $2. So he pays $5000 for the 100 shares of XYZ and receives $200 for writing the call option giving a total investment of $4800.

On expiration date, the stock had rallied to $57. Since the striking price of $55 for the call option is lower than the current trading price, the call is assigned and the writer sells the shares for a $500 profit. This brings his total profit to $700 after factoring in the $200 in premiums received for writing the call.

It is interesting to note that the buyer of the call option in this case has a net profit of zero even though the stock had gone up by 7 points.

However, what happens should the stock price had gone down 7 points to $43 instead? Let's take a look.

At $43, the call writer will incur a paper loss of $700 for holding the 100 shares of XYZ. However, his loss is offset by the $200 in premiums received so his total loss is $500. In comparison, the call buyer's loss is limited to the premiums paid which is $200.

Note: While we have covered the use of this strategy with reference to stock options, the covered call (otm) is equally applicable using ETF options, index options as well as options on futures.

Summary

Overall, writing out-of-the-money covered calls is an excellent strategy to use if you are mildly bullish toward the underlying stock as it allows you to earn a premium which also acts as a cushion should the stock price go down. So if you are planning to hold on to the shares anyway and have a target selling price in mind that is not too far off, you should write a covered call.

Nikkei 225 look good for market rally and breakout

Will be looking for stocks to capitalize on such a move.

MY NEXT BIG MARKET PREDICTION - APPLE WILL ANNOUNCE A STOCK SPLIT

$VRNG PREMARKET FAKE OUT

THIS IS AN EASY TO READ FAKEOUT  - STOCK IS DOWN FROM 3.75 TO 3.60 IN 15 MINUTES ON LIGHT VOLUME - YOU WOULD NOT HAVE GOTTEN CAUGHT OR DID THIS TRADE IF YOU KNEW HOW TO READ THE LEVEL 2 LIKE I DO - IF YOUR INTERESTED IN GETTING ON THE RIGHT SIDE AND NOT THE WRONG SIDE SEND ME AN EMAIL FOR SOME COACHING. - MY EMAIL IS RICHLENDER@GMAIL.COM

$VRNG progression move today from 3.46 to 3.66 in the level 2

These are screenshots from my Das Trader Pro Platform - Here is the progression in level 2 of $VRNG today - there are many things to learn in the screenshots - they tell you when to buy and when to sell - if you want to learn how to trade off the level 2 and have questions just contact me at richlender@gmail.com