"Take calculated risks. That is quite different from being rash."

Continuing with our options theme this week we have brought in, J.W. Jones, the primary analyst and moderator of OptionsTradingSignals.com. Today J.W is going to share with you his take on the recent silver market, and how volatility and options have presented him great opportunities in markets where traditional investors are running for the hills. Be sure to comment with your thoughts and visit J.W at Options Trading Signals.com.


Take calculated risks. That is quite different from being rash.
– George S. Patton -

Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.

I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. In order to understand the thinking behind this trade, it is necessary to understand the concept of implied volatility of an option contract. Implied volatility, together with time to expiration and price of the underlying security, form the three primal forces that rule the world of option pricing. This measure of volatility is best described as the collective opinion of traders as to the future volatility of the price of the underlying. Implied volatility is the variable which determines if options are priced cheap or overvalued. Continue reading ""Take calculated risks. That is quite different from being rash.""

Afternoon Market Update (4/15/11)

Do you smell something burning? It must be the metal markets because they're on fire!!! Need a hot ETF for your portfolio? We've got that too. See what you missed from today's market update. Be sure to join me LIVE, every weekday at 1PM ET for current, actionable data for your trades.

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Every success,

A new market, but the same indicator we've been using all week to conquer it

You only have to watch my earlier videos to see that it has performed very well this week in gold as well as the crude. In today’s short video I want to share an ETF that is setting up nicely and should be giving us a buy signal using the same strategy that we used in the earlier gold and crude oil videos.

This ETF which closely follows the Swiss Franc (symbol FXF) is one you may want to take a look at. As you may be aware, the Swiss Franc is independent of the euro zone and is a separate currency that is backed by the Swiss government.

Continue reading "A new market, but the same indicator we've been using all week to conquer it"

Why ETFs are taking over the global markets

A recent article in the publication Barron's pointed out one of the big success stories in 2010 has been the growth of the ETF market.  This market is expected to close out the year around $1 trillion up from $794 billion at year-end 2009.

For quite some time now we at MarketClub have been big fans of ETFs for investors. There are several reasons for this, but one of the great reasons is the easy way it allows investors to diversify their holdings not only across different markets, but also across different countries. We utilize this particular strategy in 2 popular ETF portfolios that we have constructed for MarketClub members.

Continue reading "Why ETFs are taking over the global markets"

Another nice profit in this ETF

We have been trading the ETF FXE for some time now in MarketClub's Perfect "R" Portfolio and today we exited our long position at $136.64, which produced a profit of $8.14 a share.

This market has performed very well for us and we have only had two major trend changes for the year so far. The FXE is an ETF that mimics the Euro versus the US Dollar, so there's always plenty movement which equals opportunity in the market. That is one of the principal reasons why we chose to include this ETF in the Perfect "R" Portfolio. Continue reading "Another nice profit in this ETF"