The Ultima Income Generator Guide to Selling Options Part 4
So far, the focus has been on setting the stage for the strike and expiration selection for the Ultima Income Generator. The numbers say to sell more time, sell OTM and hedge your risk. Today, the focus is going to be on some of the advantages of the strike/expiration combination of Ultima. Ultima Foundational Strategy…
Introduction to Inflection Point Spreads (IPS)
Since the “COVID Crash” of 2020 the market has generally been vertical with minimal volatility. Ironically, the VIX has remained relatively high, and the high skew reflects the guarded nature of institutional investors. This has made it difficult to apply hedges without increased of out-of-pocket cost, which will be a drag on performance. Here is…
The Ultima Income Generator Guide to Selling Options Part 3
The next step in the Ultima progression is understanding implied volatility and strike selection. Before we delve into which strikes to choose, there is an important concept called implied volatility skew that is important to understand first. In part 2 of the Ultima Income Generator, I discussed the concept of buying low and selling high.…
Big Bets Being Made for First Trading Day of the Year
What a time to make known your expectations for the year and that's what traders were doing today. Today's video looks at some of the large unusual option activity that is pointing to big moves this week, the next six months and the coming year. (F, TSLA, GLD, SLV, AAPL)…
The Ultima Income Generator Guide to Selling Options Part 2
I hope last week’s Part 1 blogpost led you to want to learn more about the Ultima Income Generator. If you missed it, you can click here to review the origin story of Ultima. Now that we understand the name and the person that developed it, let’s talk about selling options. Everyone Loves High Probability…
The Ultima Income Generator Guide to Selling Options Part 1
There has been a lot written on selling options to generate income and trade in a high probability fashion. However, there has never been an approach that adequately addresses the risks of selling nor approached it quantitatively like this. The Ultima Income Generator is unlike anything you’ve ever studied on the subject! The Ultima strategy…
The Rubber Band Trade for a New Year
You’ve probably heard the term, “what goes up, must come down.” That makes sense when gravity is considered, but what about asset prices? Is there a certain financial “gravity” that plays out for stock trades? Absolutely! For financial assets like stocks, valuation is something that will eventually impact the price either positively or negatively. If…
NVDA Sees Dark Cloud Cover Ahead
The Market failed to continue its advance today as it wilted following the initial opening exuberance. I'm not sure that it means we're heading down from here, but a number of stocks are in the process of forming Dark Cloud Cover candle formations today. The reversal is potentially more meaningful for these particular stocks. However,…
Santa Comes Strong with Best Start in 20 Years
If anyone was in doubt, Santa came to town today with the strongest start on the first day of a Santa Claus rally in 20 years. The numbers show that this could be a good end of year squeeze higher. Looking at today's option activity, it's clear who's at the top of Santa's list…
Candlestick Patterns 101: Side-by-Side White Lines (Bullish)
If today's price action is any indication, it appears the Santa Claus rally is happening this year. That means that many stocks that are already extended after last week's rally will become even more extended. As a result, the Side-by-Side White Lines pattern may be a pattern is Sant's bag of stocks that are being…