Category: Stock Option Investment Advice

Of late, there’s been a lot of press concerning backdating of stock options. Companies use stock options as incentive for employees to excel in their performance. The idea of employee stock options being if the employees excel, the company will excel and the company, company’s shareholders and the employees will all benefit.

In a previous article, we analyzed Jim Cramer’s bullish stock trading tips for shorting opportunities. Based on the analysis in the article a possible shorting opportunity has been discovered. On 7/24/2006 Jim Cramer recommended Openwave Systems (OPWV) saying that he had been “smoked” by OPWV and mentioning that his cell phone has Openwave on it, the day immediately following his recommendation the price of OPWV went higher and 10 market days later is still 9.0% higher than when Jim Cramer made his recommendation, ripe for a short. PowerOptions provides a search engine for finding potentially lucrative income producing opportunities, for example finding optimum bear-call credit spreads on OPWV. [tags]stock trading, bear-call credit spreads[/tags]

In a previous article, we analyzed Jim Cramer’s bullish stock trading tips for shorting opportunities. Based on the analysis in the article a possible shorting opportunity has been discovered. On 7/17/2006 Jim Cramer recommended Safeway (SWY), the day immediately following his recommendation the price of SWY went higher and 10 market days later is still 12% higher than when Jim Cramer made his recommendation, ripe for a short. PowerOptions provides a search engine for finding potentially lucrative income producing opportunities, for example finding optimum bear call credit option spreads on SWY. [tags]stock trading, bear call credit option spreads[/tags]

So is Jim Cramer the man from Mad Money mad? Should we give him a Booyah or just simply a big Boo? We analyzed Jim Cramer’s bullish recommendations since July 20, 2005 and the results are a big Boo!

Dodging the Bullet Options expiration Friday can be a hectic day for options trading. Almost every options trader considers some management techniques. Do you close your credit spread for a ten-cent liquidation value in the morning, or do you wait until the afternoon to wrangle an extra nickel out of the position, risking a change in the underlying stock price?

Once again, it’s time to analyze the stock research analysts*. Finding perfect data is probably impossible, as we analyzed several sets of data and found all of them to have flaws. The primary issue causing most of the flaws in the data related to incorrect handling of stock-splits.

In a previous article, we analyzed Jim Cramer’s bullish stock trading tips for shorting opportunities. Based on the analysis in the article a possible shorting opportunity has been discovered.

In a recent blog article we mentioned some option trading rules of thumb (June 1: Options Trading – Tips of the Trade). Tip #6 outlined the concept of the parity trade. Every options strategy has a parity trade that may be a better value.

PowerOptions attended, exhibited, and educated at optionsXpress’s first exhibition in Chicago, IL on May 4th and 5th. While the Xpo was open to the public, customers of optionsXpress primarily attended it. About 1,200 investors attended the conference with about 20 exhibitors. There were about 90 options education breakout sessions on a variety of stock option investing subjects. optionsXpress staffers presented half of the sessions. PowerOptions presented 2 sessions.

The TRIN is a market sentiment indicator. The TRIN indicator is generally used to signal overbought or oversold market conditions and is religiously monitored by some option traders. The formula for the TRIN is: