Volatility and Deaf Possums

July 2, 2012
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Monitoring Apple’s price action of late has been like watching a possum play dead.  Bulls and bears have congregated about the rodent poking with sharp sticks in an attempt to illicit some type of reaction.  Yet there it sits, reacting not a whit. “Move!” they bellow in a collective chorus.  Perhaps they’ve stumbled upon the [...]

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The Rough Road for Straddle Buyers

June 19, 2012
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The wittier headline would have been The Case for Apple Strudels Straddles but yours truly couldn’t figure out how to do strike-through text in my heading. The life of a straddle buyer could properly be characterized as perpetual disappointment punctuated by the occasional flash of brilliance.  Over time the long straddle produces many losers and [...]

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The Big Miss

June 11, 2012
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My new daddy duties of the past two weeks have been punctuated by readings of Hank Haney’s illuminating book on his 6-year coaching regime of Tiger Woods.  I discovered more than a few trading parallels of note in The Big Miss.  Here’s perhaps the most revealing one: There are very few perfect shots hit in [...]

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I’m a Daddy

June 1, 2012

Suppose we assessed the human experience from a statistical point of view. The spectrum of events comprising one’s life might be organized into categories ranging from horribly tragic to epically happy.  The sum total of all events plotted on an x-y axis would form a bell curve of sorts with the majority of experiences falling [...]

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The Sword of Excessive Observation

May 21, 2012
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Given our emotional makeup the name of the trading game for the majority of participants is protecting themselves from themselves.  Developing a trading plan with rules can help sidestep self-sabotage.  Think of it as building a bridge over the emotional quagmire that has claimed a multitude of careless traders in days past. One of the [...]

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What The Avengers Taught Me About Trading

May 15, 2012
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Along with seemingly every other person on the planet I headed out last weekend to view the much anticipated Avengers movie. While I wasn’t excited enough to don my Captain America suit and shield, I did convince the wife to join me in the superhero revelry.  To the movie’s credit she enjoyed the storyline and [...]

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The High Wire Act

May 10, 2012
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This article was originally posted at InvestorPlace Many neophyte option traders become unsuspecting victims to Gamma’s wily ways.  While these profit seekers are well-intentioned, their ignorance can prove costly particularly close to expiration.  Let’s just say the last few weeks leading up to expiration are when Gamma really takes hold and begins to play with [...]

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Who ‘Likes’ the Current Selloff?

May 7, 2012
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Views on volatility vary across the spectrum.  The lion’s share of long-biased investors quickly associate the “V” word with shocks to their emotional psyche and otherwise painful financial drawdowns.  Volatility has long since been lumped into a rather unsavory group of lepers and plagues that are altogether shunned by the masses.  Rather than flying solo, [...]

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The Cause of My Blogging Hibernation

April 26, 2012
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I’ve received a couple inquiries regarding my absence in the blogosphere of late and wanted to offer up a brief update. I’m sitting for the level II CMT exam next Saturday so my time has been spent with my nose in a score of Technical Analysis tomes in an attempt to internalize the finer nuances [...]

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Bond Bears Thwarted by Equity Weakness

April 12, 2012

Pretty price patterns can be hypnotizing.  Their subtle sexiness can lure you in and convince even the skeptical spectator that the elusive “sure thing” has been discovered.  Unfortunately, the poor saps that fall into this trap usually end up having their hearts ripped out for confusing a high probability setup with an infallible one. And, [...]

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