While Bonds and Gold Work Out Their Confusion, I’m Buying These
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While Bonds and Gold Work Out Their Confusion, I'm Buying These

John F. Carter - March 23, 2016

Hi everybody, this is John. Welcome to the free video. What do we got in store? This is a market that is defying gravity. The fact that the markets were essentially--especially the NASDAQ, comfortably higher today--after the attacks in Belgium last night, just shows how resilient this market is. I'm going to talk more about why in the premium video, but it's just like, the main thing is, we don't want to fight it.

Okay. So on the long side, I do like Facebook here. On a daily chart it doesn't look like much. On a weekly chart, we do have early warning, with the weekly squeeze. This is one that I went out and bought some options 38 days out, with the idea here that price, as price increases, you'll note that if we look at the month here you, can see that the implied volatility jumps up here. Well, guess what? That's when they release earnings, which is that week. So, by buying some options here, on a weekly squeeze, well, maybe we just get a little bit of target, but if we continue to grind higher, and the implied volatility continues to expand, that's a good thing.

I'm also doing the same thing here on PayPal. So PayPal here, you got a weekly kind of a mover here. We're trying to take out those highs, we got earnings coming up, and this is one where, at the same time, if we can get that increase in price and the increase in implied volatility, we can see here, I got some for the April, uh, this for a normal trade. The next week a little bit of a kicker for IV, and looking to see if this thing continued to climb, and implied volatility and price, which is the perfect world. So, I do like those two quite a bit. In terms of right now, those are two of my, I would say the cleaner trades, only because there's a lot of mess out there.

So if we look at, say, the yen: Yen is up, yen is down, is it flight to safety? Is the carry trade on or off? Nobody really knows, right? And if we're looking at gold, same thing. Are we flying to safety? Are we done? What's going on here? What about bonds? Oh, gosh.

So there's a lot of that going on in the market right now, but Facebook doesn't care about that. PayPal doesn't care about that. That's the kind of stuff ... I just want to make this easy. Do you want to be right in terms of how the markets should be going? Or do you want to make money? At this point, I'm cool with making money. I'm not worrying about all the stuff. We're gonna watch it, we're gonna look at it for correlating clues, but in the meantime, we're going to filter through all of that, and find the setups that make the most sense. Okay.

A topic that has come up quite a bit recently, since we've got some newer folks that have been joining us, is what do I do when trades go wrong? How can I defend that trade? How do I make adjustments? So we're going to do a free webinar, Wednesday. That's Wednesday the 23rd, from 7 to 8 o'clock Central time. http://SimplerOptions.com/Adjust.

This is going to be from Bruce Marshall. What he's going to be talking about here is very simple, very straightforward. How to salvage a trade that's already blown up in your face. I love that one. I learned a lot when he first showed me that. How to identify if a trade is salvageable, or if it is just time to close it out. Methods to retrain your brain with defense in mind. How to defend long options, debit spreads, credit spreads, diagonals, butterflies, calendars, and iron condors. If you are an options trader and you do not understand how to make adjustments, or defend a trade that's losing, and then potentially turn it into a winner, I would say that this is a must-attend free webinar. Okay?

And if we scroll up here, you can see here, that's where you enter in your name, your email, we'll send you the information, and you'll be good to go. All right, you guys have a great night, and we'll see you at the next update.