Options traders constantly seek that elusive, consistently dependable signal. But if you use a combination of two powerful signals, you might discover that getting a strong trend signal is not difficult at all. The two signals are Bollinger Bands and the t-line. Both are based on moving averages, but the bands include upper and lower… [READ MORE]

When you compare two or more covered calls, the comparison is not always valid – even if the initial yield is identical. The holding period makes all the difference. Figuring out the true net return To calculate annualized return on a covered call, you first have to address a question: What is your basis for… [READ MORE]

Swing traders have a dilemma: Getting in with long positions at the bottom is easy, but shorting stock at the top is much more problematical. Swing trading is a popular and widely understood trading technique. Based on a three- to five-day short-term trend, you expect to see stock prices turn and reverse in a predictable… [READ MORE]

  A “contrarian” trader tends to time trades differently than the typical investor. What exactly does this mean? To many observers, being a contrarian is assumed to mean going against the majority in each case. But this is not accurate; in fact, the contrarian does not trade differently just to be contrary. There is a… [READ MORE]