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BMW - VW (Correlation)Comparing the BMW chart to the VW chart it is striking that both price developments are strongly correlated to each other. Given the current spread between the two price changes in percentage, determined by using the closing price of the first day after going public, subtracting it from the current stock price and then subsequently deviding it through the first closing price, this offers us to greatly take advantage of their correlation. Obviously, it is likely that both prices are going to cross again in the future which means that all we have to do is shorting the BMW stock and buying some VW stocks in order to benefit from the decreasing spread between both prices. If we now charge both positions with the same amount of money and then close them when prices cross again, we are going to end up with 16.43% in profit.
FWB:BMWShort
by Lucas_Aschenbach
EURUSD: UpdateWe now have a confirmed weekly uptrend, after retesting support...our long trade is in good profit and we can let it run with minimal risk. I'll be trading the daily to catch multiple add on trades here and there as the trend unfolds (IF it unfolds as expected). The gold spread and the fundamental/macro landscape makes me think the Euro can rally while the uncertainty lasts, while at the same time, it's quite likely to see equities go sideways, and the yen go down. The Pound and the Euro can rally against all currencies meanwhile. Specially until the spread vs gold closes. Good luck, Ivan Labrie.
Long
by IvanLabrie
XME call spread option trade$XME is a weird one, ill be honest. on the Weeklies, the trend is up, but on the dailies its starting to look very top heavy. MACD is signalling a sell, The one bright thing here is that we are near some major support, last attempt bounced this baby for 12 days. A break below this lever will open up a clear move to the 27 handle... The idea here is to Sell a Call Spread in June -32/+35 with mid-price of 45 cents. Thats an ROI of 15% for a 59 day hold
AMEX:XMEShort
by MaccabiCapital
Adobe Trend Reversal or Buy Opportunity? Adobe (ADBE) exploded upwards on Friday, March 16th after reporting their earnings. At the same time, a huge reversal bar formed on the daily chart with the close at $126.94.  The following trading day’s bar closed just below the low confirming a possible reversal of a pretty massive uptrend the stock has been under over the last months. Not to mention, Adobe and Microsoft (MSFT) have announced a joint venture in customer engagement and marketing, as well as an Adobe announcements of new cloud services.  The cloud services could become a new commercial source of revenue, especially with Adobe’s niche in the creative marketplace as opposed to cloud service providers like Amazon’s (AMZN) AWS. But is it time to go short and sell? Well, for now, yes, or with less capital risk, fade the reversal.  Fundamentals for the company are strong, with growth showing in the long term. But our strategy is a swing strategy to take advantage of lower risk opportunities.  This trade with a stop loss above the high of the reversal bar at $130.30 is definitely not the lowest risk of them all, but a credit spread might suffice before a high potential for bullish continuation in the long run. If you’re an options player like myself or a straight underlying trader, then here’s a few sets of trades depending on your investment style. 1)      Short the stock Entry: any price today Stop: $130.31 on market close Trail it after two more days of closing bars until breakeven. If the trend has started in the downward direction, trail it to our middle moving average and follow it until the bulls take over 2)      Credit Spread Sell X Call, 21 Apr 17 Exp, 130 Strike Buy X Call, 21 Apr 17 Exp, 135 Strike Max Profit: ~13% Return on Risk/Investment 3)      Stay on the sidelines, and wait for a buy signal fractal for medium/longer term trade Buy X Amount of Calls, 20 Oct 17 Exp, 115 Strike Again, from a technical standpoint, we currently rate Adobe (ADBE) a Sell in the short term, but the bullish uptrend has a high likelihood of continuing in the medium to longer term due to the fundamental outlook and growth opportunities for the company. Until our next article.
NASDAQ:ADBE
by EdgeAnalytics
$AMZN Bullish Entry on Fundamental MoveAmazon (AMZN) announced as a catalyst to the upside they'd be eliminating a non-profitable acquisition from 7 years ago. This gave the bulls a run due to the massive cash flows dumped back into acquiring and expansion of the company, and shows a shift in focus to producing hard earnings numbers down the road. This likely will drive price further up into the earnings announcement due to speculation of further growth in the company in the long run. Granted, from a long term perspective, AMZN is one of our least favorite companies fundamentally due to the huge overvaluation it currently poses to earnings, but from a short term perspective, it's great for a short term Skip-strike butterfly or spread trade.
NASDAQ:AMZNLong
by EdgeAnalytics
Citigroup (C) A Great Candidate For A Downside SpreadAlthough the banking sector has largely had a rally since the Presidential election, regulatory headwinds and near-term fundamental outlook and projections have seemed bleak for Citigroup’s growth potential.  Long-term, the stock is a great purchase at a somewhat discounted price to its recent trading, but for our swing strategy, the latest break to the downside into a possible downtrend or consolidation is an opportunity for us. If you’re looking for a 1:1 risk/reward trade with a skewed probability curve starting at roughly 62% chance of success to earn 100% ROI, then Citigroup is a gem in this turbulent market.  Actually, we found this trade while scanning due to possibly having to close for a loss on our recent Alphabet (GOOG) trade due to management’s screw-up on an epic scale regarding extremist videos and advertisements on Youtube . Anyways, here’s the trade we see: Current stock price $58.46 Buy X Puts; 13 Apr 17 Exp; 58.50 Strike Sell X Puts; 13 Apr 17 Exp; 58 Strike Max Return on Risk/ROI: ~100% Fun times.
NYSE:CShort
by EdgeAnalytics