Which options to pre-select: OTM, ITM, or ATM?

Today I'd like everyone to welcome AJ Brown from TradingTrainerHomeStudy.com. He's an options expert and his article below is a very valuable one that everyone should read! Please don't be shy and post your thoughts and opinions which options YOU prefer!

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When trading options using short to medium term strategies, we're not looking to hold positions for a year, six months, or even three months. The idea is to enter and exit our trades within three to 40 days. Returns of 5% to 150% per trade are common with short to medium term strategies.

When I surveyed participants about putting together a short to medium term option trad-ing strategy, the number one question I received was which options to preselect: out-of-the-money (OTM), in-the-money (ITM), or at-the-money (ATM).

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Wanted: MarketClub Testimonials

If you get a few minute this weekend I would love to hear feedback from MarketClub customers. I am putting together some promotional material and I would like some fresh testimonials to jazz things up. We will also be adding new friendly faces to our testimonial page of MarketClub.

Liz B., Great Britain -"Two weeks with Market Club and 422 pips up is good news for me! This stuff can be very addictive."

Gene S., Florida- "As an active trader, I make 10-20 trades per day. MarketClub has become my number one source for analysis and forecasting. Over the past year of using +100 Trade Triangles as the basis for my trading, my portfolio is up 100% with over an 80% win ratio."

If you have a success story, enjoy a specific tool, or just want to give your thoughts on MarketClub or INO.com please send your testimonials, suggestions or comments to

bl**@in*.com











. We will be incorporating a few member responses into our print, web and possible radio campaigns for the remainder of this year.

Feel free to be specific or general. Please also send your contact information as I will be getting in touch if we choose to use your comments to give you a special little gift.

Send to

bl**@in*.com











, subject line MarketClub.

Have a wonderful weekend and I look forward to a full inbox on Monday!

Best,

Lindsay Thompson
Director of New Business Development
INO.com & MarketClub

When Fundamental Analysis Just Doesn’t Make Sense

I'm pretty sure everyone here uses, in some capicity, fundamentals to trade. But what we also have an issue with is always using the fundamentals when we really shouldn't, because they don't make sense! Zachary Scheidt, from ZachStocks.com, has come to show us a little about when the fundamentals don't make sense.

He'll be responding to comments and would like to hear a horror story!

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There are times in just about every job where things just don’t line up in a logical manner.  Equity markets have their own way of turning fundamental arguments upside down and confounding even the most studious trader.  There are times when bad economic news turns out to be good news for markets (usually because it leads to easing regulations) or when positive news is met by selling.

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U.S. Stocks About To Make U-Turn?

I think it's about time for a compelling argument that the stock market could be making a turn around...right? Well like it or not Chrisopher Hill, editor of Investorazzi.com, has come to make an argument that he'll be defending in the comments section! So if you think otherwise tell him why!

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Equities have been on a roll these past two months. On Monday, the Standard & Poor’s 500 Index, which is a meaningful benchmark to investors because it generally reflects the movements of the U.S. stock market as a whole,  reached a four-month high to close at 907.  The tech-heavy Nasdaq Composite Index also has been on a tear, finishing Monday at 1,763--- up 11% for the year.

At this point, many traders and investors are asking, is the current rally in equities sustainable?  Or, are U.S. stocks about the make a U-turn and head south?

Recently, a couple of legendary investors shared their views on where stocks might be heading.

Back in early March, Marc Faber, who is famous for warning clients to get out of the U.S. stock market a week before the October 1987 crash, predicted that U.S. stocks would rally.  On April 13, the money manager told a Bloomberg Television audience:

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Stock Fluctuation in an Efficient Market?

Today's post is by Saj Karsan of BarelKarsan.com. Saj's post is on stock fluctuation and value investing. Enjoy and be sure to leave us a comment on your favorite value stock.

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In an "efficient market", all stocks are fairly priced by the market. If the US stock markets are efficient, and many finance industry professionals believe this to be the case, one cannot generate index-beating returns except through luck. However, if we were in an efficient market, it seems hard to believe that stock prices for even the most stable of companies should fluctuate so drastically from year to year and even from week to week. Yet that is exactly what happens.

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