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All Star Options

[Options Premium] Bringing More Premium Home

September 8, 2023

The hunt for premium selling opportunities continues. And today's trade is in a name that is heavily weighted in the Home Construction sector ETF, where options premiums -- sector-wide -- are a bit more elevated than the rest.

Thankfully, October options expiration happens the week before this company releases its next quarterly earnings report, so we don't have any of that event risk to worry about.

There's a time and a place

September 8, 2023

Stocks are messy these days.

The major indexes peaked in July and the new 52-week highs list topped out almost 2 months ago.

This is all perfectly normal market behavior for this time of the year. In fact, if markets were behaving any differently, then THAT would actually be unusual.

Just like over the past 3 quarters. If stocks didn't do as well as they did, again, that would have been weird.

The market continues to behave according to historical trends, obnoxiously so.

And to be clear, it's when the market ignores seasonal tendencies that we want to pay more attention,...

Embrace the Hard Trades

September 8, 2023

While in the process of preparing for this week’s live Options Jam Session, I came across an open trade in $HMC that has been performing quite well for us.

It reminded me that when I wrote about the trade back on May 15th for subscribers, I began the piece with this:

I’m filing today’s trade under the category of “Hard Trades.” Not because it’s particularly hard to execute or because it’s a complicated multi-legged spread. It won’t require an excessive amount of margin to get positioned nor is there any risk of unlimited losses.

It’s hard because people might look at the trading action of the past few days and think that it’s “gone too far” and “I should wait for a pullback.”

And traders who think that way may be right.

But here’s the thing: sometimes the best trades to get into are the best precisely because they are the “hardest” to pull the trigger on. And that’s where our opportunity is. Those of us who fight through the conventional wisdom of average traders and get positioned ahead of the crowd will be lifted later on by those same traders...

Swing Trader Pro: Afternoon Briefing (09-07-2023)

September 7, 2023

From the Desk of Kimmy Sokoloff

The market pulled in for yet another day.

We'll see if we're flagging to head higher or to see 435 to 440 on $SPY.

Please keep in mind that my shorts are one-tenth of my long trades position-size-wise.

If I stay in a short position for a longer period of time, I add on pops and buy back till I complete the position.

September Strategy Session: 3 Key Takeaways

September 7, 2023

From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts

We held our September Monthly Strategy Session Tuesday night. Premium Members can access and rewatch it here.

Non-members can get a quick recap of the call simply by reading this post each month.

By focusing on long-term, monthly charts, the idea is to take a step back and put things into the context of their structural trends. This is easily one of our most valuable exercises as it forces us to put aside the day-to-day noise and simply examine markets from a “big-picture” point of view.

With that as our backdrop, let’s dive right in and discuss three of the most important charts and/or themes from this month’s call.

All Star Charts Premium

Chinese Bonds Suggest Trouble Ahead

September 7, 2023

From the Desk of Ian Culley @IanCulley

Yields are rising worldwide. 

US treasuries continue to fall after a brief pullback in price. 

Now, Chinese government bonds are pressing toward fresh lows.

Sovereign debt epitomizes downside risk. And Chinese bonds are on the cusp of a significant breakdown – a breakdown that spells more trouble for global bond investors.

Check out the VanEck China Bond ETF $CBON:

CBON aims to track the ChinaBond China High Quality Index (debt mainly issued by the People’s Bank of China). And like US treasuries, Chinese government bonds are flirting with fresh multi-year lows.

I have been adamant regarding a bearish bias toward US bonds. (In fact, I think they’re an excellent short.

A similar outlook extends to Chinese government-issued debt if and when...

Hot Corner Insider

Broadwood Capital Raises Its STAA Stake to 18%

September 7, 2023

From the Desk of Steve Strazza

The largest insider transaction on today’s list comes in a Form 4 filed by Broadwood Capital.

The hedge fund revealed a purchase of $7.8 million in STAAR Surgical Company $STAA, increasing its ownership stake to 18%.

Day Trader Pro: Afternoon Briefing (09-07-23)

September 7, 2023

From the Desk of Kimmy Sokoloff

The market pulled in for yet another day.

We’ll see if we’re flagging to head higher or to see 435 to 440 on $SPY.

Please keep in mind that my shorts are one-tenth of my long trades position-size-wise.

If I stay in a short position for a longer period of time, I add on pops and buy back till I complete the position.

All Star Charts Premium

The Short Report (09-06-2023)

September 6, 2023

From the Desk of Steve Strazza @Sstrazza

When investing in the stock market, we always want to approach it as "a market of stocks."

Regardless of the environment, there are always stocks showing leadership and trending higher.

We may have to look harder to identify them depending on current market conditions. But there are always stocks that are going up.

The same can be said for weak stocks. Regardless of the environment, there are always stocks that are going down, too. 

We already have multiple scans focusing on stocks making all-time highs, such as Hall of Famers, Minor Leaguers, and the 2 to 100 Club.

We filter these universes for stocks that are exhibiting the best momentum and relative strength characteristics. 

Clearly, we spend a lot of time identifying and writing about leading stocks every week, via multiple reports.

Now, we're also highlighting lagging stocks on a recurring basis.

We publish this column every other week,...