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☆ How to capitalize on the November dip-buying opportunity in gold
▼ + stars: | 2024-11-19 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The SPDR Gold Shares (GLD) has shown remarkable strength in 2024, soaring 40% between January and October. For those who missed the rally, November offers a potential opportunity as GLD has pulled back 8% from its all-time highs, creating a dip-buying scenario. DMI (Directional Movement Index): The DMI is composed of three lines: DI+ (green line), DI- (red line), and ADX (blue line). When the DI- (red line) is above the DI+ (green line), it indicates a downtrend. Note that both DI- and DI+ are changing direction, which provides the first indication of a possible trend change.

Persons: GLD, Nishant Pant Organizations: RSI, CNBC, NBC UNIVERSAL Locations: GLD

☆ This small-cap ETF is a swing trader's dream. How to trade it following the Trump pop
▼ + stars: | 2024-11-13 | by ( Nishant Pant | ) www.cnbc.com time to read: +2 min

The iShares Russell 2000 ETF (IWM) is particularly interesting for swing traders, as it tends to trade within predictable ranges over extended periods. Given that IWM is trading at the top of the new trading range, I'm considering a bearish trade on IWM. With $242 as the upper bound of the range, I'll sell a $245 call option, just above the current resistance level. The trade As mentioned earlier, the trade structure I am using here is called a "bear call spread," also known as a "call credit spread". To construct my trade, I need to sell a $245 call option and buy a $250 call option as a single unit.

Persons: Russell, IWM, Nishant Pant Organizations: Trump, CNBC, NBC UNIVERSAL

☆ This bank stock is losing momentum. How to profit from a pullback using options
▼ + stars: | 2024-11-05 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

A recent mean reversion trade I shared on Alibaba demonstrated this well when I pointed out that Chinese stocks were due for a pullback. Today, I'm looking at a potential mean reversion trade on JPMorgan (JPM) . I cover many of these setups in my book Mean Reversion Trading . For instance, with JPM trading around $220, I'd set up the trade by purchasing a 225 strike put and simultaneously selling a 220 strike put. -Nishant Pant Founder: https://tradingextremes.com Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: (Nishant currently holds a JPM 225-220 put spread expiring on 11/22.)

Persons: Morgan Stanley, Alibaba, I've, I'm, I'd, Nishant Pant Organizations: JPMorgan Chase, JPMorgan, CNBC, NBC UNIVERSAL Locations: Wells Fargo, BlackRock

☆ A bearish bet on a stock whose chart is raising some red flags
▼ + stars: | 2024-10-29 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Two weeks ago, I had covered a trade on Alibaba using a very popular indicator called the MACD (Moving Average Convergence Divergence). Note that a bearish crossover is happening again for ACN indicating a loss in upward momentum. With a bearish outlook on ACN, I’m utilizing a strategy known as a "bear put spread" to potentially profit from a pullback. The trade This involves purchasing a put option with a higher strike price and simultaneously selling a put option with a slightly lower strike, creating a net debit position. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: it's, Nishant Pant Organizations: Accenture, CNBC, NBC UNIVERSAL

☆ How to bet against real estate using options as higher rates pressure housing market
▼ + stars: | 2024-10-22 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

As a key benchmark for long-term interest rates, including 30-year fixed mortgage rates, this rise in yields is exerting negative pressure on the real estate sector. With this in mind, I'm looking to capitalize on the continued pressure on real estate as long as yields keep climbing. Below is a 6-month daily chart of the iShares U.S. Real Estate ETF (IYR) , which tracks the performance of U.S. real estate-related equities. The options chain for Nov. 8 shows that there is a 68% chance that the $102 call will expire worthless by expiration date. The trade Given the bearish outlook, I'm utilizing a bear call spread, also known as a call credit spread.

Persons: Nishant Pant Organizations: Treasury, Real, IYR, CNBC, NBC UNIVERSAL Locations: U.S

☆ Rally in Chinese stocks is showing some exhaustion. How to trade it from here with options
▼ + stars: | 2024-10-15 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

However, stocks don't usually climb in a straight line, and many of these names are showing signs of exhaustion after a significant rally. This time, I'm introducing a new indicator for my trade setup: the MACD (Moving Average Convergence Divergence). In the case of BABA, the blue line (the MACD line) is crossing below the yellow line (the signal line). The trade To capitalize on a pullback in BABA, I'm using a trade structure called a "bear put spread." For example, if BABA is trading at $102, I would buy a $103 put (higher strike) and sell a $101 put (lower strike) to complete the trade setup.

Persons: I'm, it's, BABA, Nishant Pant Organizations: PDD Holdings, Baidu, Futu Holdings, CNBC, NBC UNIVERSAL Locations: BABA

☆ This restaurant stock could be in for more tough times. How to trade it
▼ + stars: | 2024-10-08 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

I am going to explore an interesting trade set-up using three exponential moving averages to identify a restaurant stock that will continue to trend downward. Looking at the one-year daily chart of Olive Garden-parent Darden Restaurants (DRI) , you'll notice the stock has faced resistance around the $175 level and is currently in a downtrend. I've highlighted several instances over the past year where the 10-day EMA crossed either above or below the 21-day EMA. The trade Building on this analysis, I'm considering a bearish strategy on DRI, using a trade structure known as a bear put spread. Adding 10 contracts to this trade risks $2500 to make $2500 and provides a robust ROI for the capital risked.

Persons: Nishant Pant Organizations: Darden, EMA, CNBC, NBC UNIVERSAL

☆ An options trade that wins if the stock market and this key sector cool off in October
▼ + stars: | 2024-10-01 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

When a stock or ETF becomes overbought, it can maintain that condition for an extended period. In the one-year daily chart of Consumer Discretionary Select Sector SPDR (XLY) below, I've highlighted two similar instances from the past. RSI (Relative Strength Index): As a stock rises, the relative strength index (RSI) measures the strength of the trend. Once in overbought territory, it's advisable to wait until the RSI falls back below 70 before considering a contrarian trade. The trade To benefit from a pullback in XLY, the trade structure I am going to use is called a "bear put spread".

Persons: Nishant Pant Organizations: Federal Reserve, CNBC, NBC UNIVERSAL Locations: overbought

☆ Using options to trade an index that's become a swing trader's dream
▼ + stars: | 2024-09-27 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Although it is very volatile and exhibits wild swings, in the 1-year daily chart shown below, it becomes evident how confined its movement is within a well-defined trading range. Whenever it breaches one of these levels, it quickly stabilizes in a new trading range. Based on this analysis, I am considering a bearish set-up while keeping the top of its current trading range in mind. The trade Given the bearish outlook, I'm using a call credit spread as my trade structure. If the index stays below $2,260 by the expiration date, the trade will yield an ROI of 42% on the capital risked.

Persons: Russell, Nishant Pant Organizations: CNBC, NBC UNIVERSAL

☆ A hedge that pays off if the chip stock comeback isn't for real
▼ + stars: | 2024-09-17 | by ( Nishant Pant | ) www.cnbc.com time to read: +2 min

Despite taking a beating in the latter part of August, most chip stocks have staged an impressive relief rally so far. Additionally, it's worth noting that the RSI (Relative Strength Index) is starting to curve downwards, signaling a loss of upward momentum. The trade The trade structure I am using here is called a "bear put spread". THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: AVGO Organizations: Broadcom, Investment, CNBC, NBC UNIVERSAL

☆ A trade that wins if Apple shares continue to break down following iPhone event
▼ + stars: | 2024-09-10 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Moreover, shortly after Apple introduced the iPhone 16 , Chinese smartphone manufacturer Huawei launched its tri-fold phone, the Mate XT. This device garnered significant attention, securing more than 2 million pre-orders within just a few hours of its release. The trade The trade structure I'm employing is known as a "bear put spread." THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Tim Cook, AAPL, Nishant Pant Organizations: Apple, Huawei, AAPL, CNBC, NBC UNIVERSAL Locations: AAPL

☆ A trade that wins if the drop in Chipotle after CEO jumps to Starbucks is overdone
▼ + stars: | 2024-08-13 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Chipotle Mexican Grill (CMG) shares are getting wrecked after its CEO Brian Niccol left to try and turn around Starbucks. With a positive outlook on CMG, I see this pre-market drop as an opportunity to invest in a company that seems almost recession-proof. The trade To initiate a bullish position on CMG, I plan to use a strategy known as a "bull call spread." This trade was written assuming Chipotle was trading around $51 a share. If CMG trades at or above the short strike by the expiration date, this trade could yield a return of 100% on the amount risked.

Persons: Brian Niccol, let's, Chipotle Organizations: Grill, CNBC, NBC UNIVERSAL Locations: Chipotle

☆ A bullish options trade on a tech recovery after the latest sell-off
▼ + stars: | 2024-08-06 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

We saw another EMA crossover in May, signaling the end of the pullback and the start of a new bull run. July 2023 : Although the majority of the current correction unfolded in August, the EMA crossover signal had already appeared in July. For example, in May 2023, waiting for the EMA crossover would have meant missing out on 4.6% of the move. The trade setup: QQQ bull call spread To take a bullish trade on QQQ, I will be using a trade structure called a "bull call spread." For example, if QQQ is trading at $440 at the time of the EMA crossover, one could consider buying a 440-441 call spread.

Persons: bullish, Nishant Pant Organizations: Nasdaq, Corrections, Trust, EMA, ITM, CNBC, NBC UNIVERSAL Locations: QQQ

☆ Using options to try to catch the bottom in CrowdStrike
▼ + stars: | 2024-07-30 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

This drop in such a short period seems overly exaggerated, and I'm on the lookout for signs of a bounce to initiate a bullish trade on CRWD. DMI (Directional Movement Index): The DMI is composed of three lines: DI+ (green line), DI- (red line), and ADX (blue line). When the DI- (red line) is above the DI+ (green line), it indicates a downtrend. Note that both DI- and DI+ are changing direction, which provides the first indication of a possible trend change. The Trade To take a bullish trade on CRWD, I'm using a trade structure called a "bull call spread."

Organizations: Microsoft, Apple, Nasdaq, RSI, CNBC, NBC UNIVERSAL Locations: CRWD

☆ A bullish options bet that will pay off if Tesla and Alphabet rally after earnings
▼ + stars: | 2024-07-23 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Earnings season is heating up, as Tesla and Google-parent Alphabet are set to report their latest results after the bell Tuesday. I'm considering a bullish trade in QQQ for Wednesday — contingent on a positive market reaction to GOOG and TSLA earnings. This allows you to construct a $1 wide bull call spread and risk as little as $50 to make $50 per winning trade. I've suggested a 482-483 call spread because QQQ is trading at 482 as of writing this. If earnings are strong, QQQ will likely gap up and open at a higher price tomorrow.

Persons: QQQ, I've, Nishant Pant Organizations: Google, Nasdaq, CNBC, NBC UNIVERSAL Locations: QQQ

☆ Using 'bear put spreads' to cash in on a stock that's run too far, too fast
▼ + stars: | 2024-07-16 | by ( Nishant Pant | ) www.cnbc.com time to read: +4 min

I feel like the stock has gone too far, too fast, however, and provide an options trade that wins if the shares pull back. Ross (ROST) has benefited significantly from this trend, with its stock rising by 20% over the past two-and-a-half months. Support and Resistance: Using basic support and resistance concepts, we can identify short-term resistance around the 150 level. With ROST trading around $148.08, my plan is to buy an at-the-money (ATM) put spread. Regardless of ROST's current trading price, my long strike will be set above the current price, and the short strike will be positioned below it.

Persons: ROST, Nishant Pant Organizations: Ross Stores, RSI, CNBC, NBC UNIVERSAL

☆ This software stock is about to hit heavy resistance. How to trade it with options
▼ + stars: | 2024-07-09 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

I believe Salesforce shares are about to hit resistance and there's an options trade that will win if the stock falters. Salesforce (CRM) dropped an eye-popping 22% despite beating earnings estimates in its last earnings report on May 29. As is common with growth stocks, which trade at a high valuation, beating earnings estimates is important, but even more crucial is forward guidance. The trade To construct my trade, I am selling a $265 call option which happens to coincide with upside gap fill resistance and buy a $270 call option as a single unit. As long as CRM doesn't go above $265 by my expiration date, this trade will return 30% ROI in 18 short days.

Persons: Nishant Pant Organizations: CRM, CNBC, NBC UNIVERSAL

☆ How to construct a winning options strategy on a software stock that had a big June
▼ + stars: | 2024-07-02 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The charts indicate the TurboTax maker could be caught in a trading range from here and I've got an options strategy that wins if it remains stuck. An Iron Condor is a great trade structure to use when dealing with trading ranges like this one. To construct an Iron Condor, all I have to do is sell a call credit spread and a put credit spread at the same time. Most trading platforms will allow you to put this trade as one unit by selecting "Sell Iron Condor" as the trade structure. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: I've, INTU, Nishant Pant Organizations: Intuit, Condor, Iron Condor, CNBC, NBC UNIVERSAL

☆ A bearish options trade that wins if Nvidia and the QQQs continue to cool off
▼ + stars: | 2024-06-25 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Nvidia (NVDA) is finally showing signs of profit-taking, suggesting that the entire technology sector might be ready for a breather. This could present many bearish trading setups in various stocks because of the influence Nvidia has had leading the AI bubble. For now, let's focus on making a bearish trade in the Invesco QQQ Trust , an ETF that tracks the Nasdaq 100 index. The Trade The trade structure I have chosen here is called a Bear Call Spread also known as a Call Credit Spread. As long as QQQ stays below $483 in the next 17 days, this trade will return a 38% ROI on the money risked.

Persons: Nishant Pant Organizations: Nvidia, Trust, CNBC, NBC UNIVERSAL

☆ A bearish options trade on a travel stock running up against resistance
▼ + stars: | 2024-06-18 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

The stock price is stalling near resistance around the $128 price level and I have a bearish options trade to capitalize on it. To further confirm a bearish bias on EXPE, I am using 3 technical indicators in the chart below: RSI (Relative Strength Index): As a stock climbs up, the Relative Strength Index (RSI) gauges the strength of the trend. DMI (Directional Movement Index): When the DI+ (green line) is above DI- (red line), the stock is in an uptrend. The Trade Setup: A Bear Put Spread I am using a “bear put spread” as my trade structure here. Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you.

Persons: EXPE, ADX, Nishant Pant Organizations: Expedia, RSI

☆ A way to play the emerging AI enthusiasm in cybersecurity stocks using options
▼ + stars: | 2024-06-11 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

As the AI bubble turns into a mania and AI shifts to the cloud, many companies can benefit indirectly from this boom. Since that stock has already hit new highs, I am looking to participate in this sympathy move by using another cybersecurity darling, Palo Alto Networks (PANW) , as a proxy trade. A bullish price momentum accompanied by an increasing RSI indicates the strength of the move. The trade To bet bullish on PANW, the trade structure I have used here is called a "bull call spread". BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: CrowdStrike, bullish, PANW, Jay Powell's Organizations: Alto Networks Locations: PANW

☆ How to find sleepy stocks trading sideways that are about to move and trade them with options
▼ + stars: | 2024-06-04 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

A trade set-up I use in my own account focuses on identifying stocks exiting a low-volatility, sideways choppy price movement into an explosive directional move. During these times, expect little to no directional price movement. TTM Squeeze Indicator: Most trading platforms offer a free indicator called TTM Squeeze. The Trade Setup: A Bear Put Spread I will use a trade structure called a “bear put spread.” At the time of writing this, WM was trading at $201. Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you.

Persons: I've, Nishant Pant Organizations: Bollinger Bands, Keltner, Waste Management

☆ A bearish options trade on a beer stock that's breaking down
▼ + stars: | 2024-05-28 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

When the DI+ is above the DI-, the stock is considered to be in an uptrend. Conversely, when the DI- is above the DI+, the stock is in a downtrend. The trade: Bear put spread Most trading platforms will offer a bear put spread (or long put spread) as a trade type and automatically construct the trade for you. If SAM’s stock price starts rising against my directional bias, I would want to cap my losses at 50% of my investment (i.e., $250). THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET.

Persons: Bear, Nishant Pant Organizations: Boston Beer, RSI

☆ A trade that wins if too-high inflation knocks down this stock market again
▼ + stars: | 2024-05-14 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

We'll review a trade that wins if the market pulls back again. Inflation has been stubbornly high for months, and today's hotter-than-expected producer price index report only reinforces that notion. It is prudent to wait for confirmation of the double-top pattern before considering a bearish trade though. The trade setup: SPY 513-512 Bear Put Spread The trade structure I am using here is called a "bear put spread". BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: SPDR Dow, Nishant Pant Organizations: PPI, CPI, SPDR Dow Jones, Average Trust

☆ A bearish options trade on Apple that wins if the buyback enthusiasm fades
▼ + stars: | 2024-05-07 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

Apple surged on Friday following Tim Cook's announcement of the largest stock buyback in stock market history. I'm aiming for a post-earnings "gap fill" trade on AAPL . Despite my long-term bullish outlook on AAPL, I'm considering a short-term bearish trade to fade this post-earnings spike. If AAPL starts against me, I would want to close the trade if I lose 50% of my investment (i.e., $125). BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Apple, Tim Cook's, AAPL, Nishant Pant

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