Market Report Once Again Bulls take charge
By Todd Horwitz on Oct 17, 2021 at 10:39:26 AM

 Market Report Once Again Bulls take charge

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Just when the bears thought it was safe, the bulls buried them again charging higher. The downtrend we were seeing last week has reversed and the bulls are the strong hands.

Nothing appears to bother the bulls, overwhelming debt, hyperinflation, and the new tax proposal. Through the bad news the buyers came back in force showing once again you can’t fight the FED. The one thing everyone must remember is the market is always right.

The fourth quarter is typically a big quarter in either direction, many of the biggest down moves have come in the 4th quarter. For now, the bulls have control and can push markets higher despite the light volume.

Call Buying leads the way once again with a mixed bag of option trades in the top 5. Bull Puts and Spreads are among the top five with Bear Puts and Bear calls. Looks like a mixed bag filled with complacency

Tech has resumed the leadership for the bulls with TSLA, AMD, NVDA, AAPL and ROKU leading the way. The bears are being led by SPY, NRXP, VXX, GS and CHWY. The VIX continues to fall which could continue to fuel the bull market.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com


Market Report Bears taking control
By Todd Horwitz on Oct 10, 2021 at 9:53:36 AM

 Market Report Bears taking control

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Markets had a relatively flat week and an instant replay from last week. Monday markets got clobbered while they tried to rally the rest of the week. The bears appear to be seizing control of the markets and looking for a push down.

We don’t predict market but the price action including the lower highs is an indication that the bull market is ending. Interestingly enough the VIX has been flat to lower through the selling. The action is typical in a market that is potentially changing directions.

There are many warning signs in markets from the collapsing prices in Lumber and Copper to the massive inflation that no one wants to acknowledge. Overwhelming debt, stimulus and an unstable government have not created any issues for markets, yet.

A bell isn’t rung when a bear market begins only the price action signals change. The options markets are showing more bearish info, except for call buying holding the top spot which does not necessarily bullish, investors could be buying calls and shorting stock. However, strategies 2-5 are bearish, put buying, call selling with put debit spreads.

The bulls are being led by, TSLA, AAPL, XLE, NVDA and AMAT. The Bears are being led by the symbols you would expect to lead a bear market. SPY, QQQ, GLD, SPCE and AMD. It should be interesting

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com

Join us for our Monday Night Strategy call starting at 4:30 EST


A Simple Guide to Building an Investing App
By - Dan Raju, CEO at Tradier on Oct 6, 2021 at 3:21:37 PM

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You may remember your father, or even your money-savvy grandmother, telling stories about how they would have to call or meet with a broker to invest their money. Those days have been long gone. 

When it comes to using investing apps, it seems like the market is currently monopolized by companies like Robinhood. But, there’s always room for competition, and investment apps are no different.

Are you unsure where to begin with building an investment app? Read on to learn everything you need to know!

Where do I start building a mobile investment app? 

Regardless of which type of investment app you choose to build, the first step should always be to do your homework. Just like with any other business venture, you’ll want to conduct market research to identify your target audience, and then you can determine what that target audience needs and what they have disliked with other investing apps in the past.

From there, you can work on building your investment app based on what type you decide to launch!  Once you’ve built your app with trading capabilities, you can integrate with Tradier Brokerage who serves as the broker dealer of record. 

What are the different types of investment apps that you can build? 

Self-Directed App:

Self-directed investment apps give individual traders and investors the ability to place their own trades at their own discretion. What qualifies an app as self-directed is if the user is initiating and placing trades in their own brokerage account, at their own discretion. In simple terms, a self-directed experience is a trade or investment that is defined solely by the holder of a brokerage account. 

Advisory App:

Unlike the self-directed app where the individual has control, with an Advisory App, an advisor is managing the trades and investments with limited trading authority into brokerage accounts, on behalf of the account holders. This means that the advisor is authorized as an RIA (Registered Investment Advisor) and holds the appropriate licenses. This accreditation gives such advisors the discretion to place trades and/or rebalance portfolios of their brokerage account holders that they manage.  

4 Steps to Building a Self-Directed App:

  1. Visit https://documentation.tradier.com and review the API Documentation needed. As you get started, you can register for a free sandbox account to test out your API Documentation.
  2. Once you decide to proceed (or if you have any questions), you’ll want to reach out to  sales@tradier.com. They have a fast response time and once you reach out, someone will get back in touch with you immediately, or within 1 business day at the most, to set up a conversation with you. 
  3. The Tradier sales team will then send you a Platform API agreement and the access keys to get started.
  4. Once you have completed the build process you are all set to launch the app! Tradier also has a “Platforms Page” where you can opt in to be listed, as well as other marketing initiatives.

4 Steps to building an Advisory App:

  1. Visit https://documentation.tradier.com and https://advisors.tradier.com/ to review the API documentation you need. 
  2. Once you decide to proceed (or if you have any questions), you’ll want to reach out to sales@tradier.com. Just like with the self-directed app, they have a fast response time and once you reach out, someone will get back in touch with you immediately, or within 1 business day at the most, to set up a conversation with you.
  3. The Tradier sales team will then send you an Advisory API agreement and the access keys to get started. Both the Tradier support and product teams will be there to help you every step of the way! 
  4. As you build and launch your advisory app, the same Tradier support and product teams can help you in any and every way that you need!

Whether you’ve built other finance apps before, or whether designing and building an app is entirely new territory for you, Tradier has you covered. We know navigating the process of building and launching an investment app can be a confusing and stressful one, which is why we want to help! With our team, you’ll have the support you need, every step of the way.

Get in touch with Tradier today to get started! 

 


Market Report Trend Change Markets Head South
By Todd Horwitz on Oct 2, 2021 at 3:38:51 PM

 Market Report Trend Change Markets Head South

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

A trend change is in the air as markets look to head south for the winter. We know that bear markets don’t announce themselves or ring a bell, they just show up. We are not ready to call bear market, but it appears a correction is coming.

We are seeing many warning signs, Lumber collapsing along with copper. The instability in government and a potential new tax plan. Add to that inflation a FED that doesn’t acknowledge it and many other things add up to a potential meltdown.

This market has many of the same characteristics of 2008, collapsing housing which was on fire. Crazy commodity prices, Covid and more. The price action is typical as dip buyers try and hold up the bull, but the lower highs tell a story.

Except for Call buying remaining the number one strategy the next four are bearish. Bear Put, Call Credit Spread, Short Calls a Bull Put Spreads. Remember we don’t know what the other side of the trade is, we only know what is being bought or sold.

The bears are being led by QQQ, SPY, DKNG, SPCE and FB. While the bulls are playing TSLA, XLE, AMD, AAPL and AFRM. The action is bearish as is the trend, look for a rise in volatility along with price swings.

Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Join us for the Monday Night Strategy Call at 4:30 EST. 

Register here 

Todd “Bubba” Horwitz

BubbaTrading.com


Market Report Confusion, Complacency
By Todd Horwitz on Sep 25, 2021 at 4:08:37 PM

 Market Report Confusion, Complacency

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Last week the markets looked ready to collapse and reverse trend. Monday saw huge follow through to the downside. However, the rest of the week saw a rally as markets closed higher on the week. Volume and volatility collapsed through the week.

The action brings the question, is the bull market over? The answer is nobody knows. There are many disturbing factors that show indications that the end is near. Lumber and Copper prices melting down, employment weak with stimulus.

There is never a bell or warning when the next bear market will start but we must pay attention to the warning signs. Markets are on edge as is the country. Inflation is soaring, interest rates are starting to climb and those with stimulus don’t want jobs which equals stagflation.

The option market is starting to show signs as well but call buying remains on top. However, the next four are bearish strategies which include Put buying and call selling. Remember the strategies alone don’t tell the entire story because we don’t know the other side of the trade.

The bull side is being dominated by TSLA, XLE, NVDA, SPX and APPL while the bear side is led by NRXP, WYNN, SPY, AMD and CHWY. This is a mixed bag at best.

Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com

Join us Monday at 4:30 EST for our Monday Night Strategy Call

Register Here


Market Report Confusion, Complacency
By Todd Horwitz on Sep 25, 2021 at 4:07:23 PM

 Market Report Confusion, Complacency

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Last week the markets looked ready to collapse and reverse trend. Monday saw huge follow through to the downside. However, the rest of the week saw a rally as markets closed higher on the week. Volume and volatility collapsed through the week.

The action brings the question, is the bull market over? The answer is nobody knows. There are many disturbing factors that show indications that the end is near. Lumber and Copper prices melting down, employment weak with stimulus.

There is never a bell or warning when the next bear market will start but we must pay attention to the warning signs. Markets are on edge as is the country. Inflation is soaring, interest rates are starting to climb and those with stimulus don’t want jobs which equals stagflation.

The option market is starting to show signs as well but call buying remains on top. However, the next four are bearish strategies which include Put buying and call selling. Remember the strategies alone don’t tell the entire story because we don’t know the other side of the trade.

The bull side is being dominated by TSLA, XLE, NVDA, SPX and APPL while the bear side is led by NRXP, WYNN, SPY, AMD and CHWY. This is a mixed bag at best.

Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com

Join us Monday at 4:30 EST for our Monday Night Strategy Call

Register Here


Market Report Is the Trend changing
By Todd Horwitz on Sep 12, 2021 at 9:13:10 AM

Market Report Is the Trend changing

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Although all equity markets were lower last week the options markets continued with a bullish posture. However, the trend appears to be changing. With last week and this week being holiday week’s its hard to make any judgements.

The week ahead promises to be interesting, there is the Jewish Holiday of Yom Kippur followed by September’s triple witching expiration. We know that volumes will be light in the middle of the week with big volume on Friday. This action is expected and should have no real effect on markets unless its directional.

The best course of action is observation, discipline, and patience. Trying to make something happen in these dull markets is really a fool’s game. Price action always dictates what’s to come and this time will be no different. There are may reasons to believe a sell off is coming however price will tell us.

The option strategies continue to lean bullish with call buying leading the way. Rounding out the top 5 were bull puts, bull put spreads, bear puts, and bear put spreads. The strategies themselves don’t tell the entire story; they are just another piece of the puzzle.

The bull’s leaderboard has been more mixed that the past few months with AAPL, DKNG, SPY, IWM and SPY as the top 5 bullish trades last week. The Bears were led by XLE, VXX, SPCE, ZM and GOLD. With the holiday and triple witching this week, anything can happen. Be prepared not surprised

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com


Market Report Holidays over, Trend Changing
By Todd Horwitz on Aug 28, 2021 at 3:54:32 PM

Market Report Holidays over, Trend Changing

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

The 3rd quarter is coming to an end with the 4th quarter 9 trading days away. Historically traders have the best periods in the 4th and 1st quarters. With the holidays over we can expect markets to see more volume and trading action.

The last couple of weeks markets have started to lose steam and the trends are potentially changing. Friday’s triple witching expiration saw heavy selling and a trend change in the Dow futures while the S+P, Nasdaq and Russell are close.

The options market has turned more negative as well with the VIX starting to climb. Although Call Buying is still the number 1 strategy with Put Buying, Call Spread selling, Call Selling and Put spread buying. The only bullish strategy of Call Buying is not necessarily bullish because we don’t know what the other side of the trade is.

The bulls are still buying Tech with DKNG, TSLA, AAPL PLTR and MSFT leading the way. The Bears are focusing SPCE, NRXP, ZM, QQQ and CHWY. The next few days will be key in whether the rally continues, or the trend is changing.

Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com


When Are Calls and Puts Early Exercises?
By - Dan Raju, CEO at Tradier on Aug 27, 2021 at 10:01:57 AM

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The variety of options available to the American investor can be overwhelming.  Let’s start by answering: What are options? 

What are Options?

Options are a type of derivative security whose value is linked to an underlying asset, like a stock, commodity, future, or the like.  Investors can either buy or sell option contracts, which give the holder or owner of the option the right, but not the obligation to either buy or sell the underlying asset, at a predetermined price by a predetermined time.  The two standard types of options are calls and puts.  Many things go into the pricing of calls and puts such as time to expiration, implied volatility, and interest rates to name a few. 

Call and Put Options

Call and put options are different sides of the coin. Both are derivative contracts on an underlying asset.  However, they behave in opposite ways. Let’s break down how these options work.

What Is a Call Option?

Call options give the option buyer, or holder, the right, but not the obligation, to buy the underlying asset or instrument at a specified price within a specific time period. A call buyer profits when the underlying asset increases in price or when implied volatility increases.

A call option may be contrasted with a put option, which gives the holder the right to sell the underlying asset at a specified price on or before expiration.

What Is a Put Option?

A put option is a contract that gives the owner the right, but not the obligation, to sell (or sell short) a specified amount of an underlying asset at a predetermined price by a specified time. The predetermined price that a holder of the put option can sell the underlying asset is called the strike price.

Put options can increase in value as the underlying asset falls or when implied volatility rises. Conversely, puts decrease in value when the underlying asset rises or implied volatility declines in addition to the passage of time.

Option Exercise and Assignment:

Both calls and puts expire at some point in time, on their expiration date. When they expire, calls and puts either expire into stock or they expire worthless. Calls are in the money when the stock price is greater than the strike price. Puts expire in the money when the put strike is greater than the stock price. Holders of calls upon exercise receive long stock and holders of puts upon exercise receive short stock.  If you are short call or put options and they get assigned, you get the opposite of what a holder would get as the result of the exercise.  

Early Exercise

So, what exactly is an early exercise or assignment? Early exercise or assignment of an option occurs when a holder of either a call or put exercises the option PRIOR to the option’s expiration. The most common reason for early exercise of a call is to receive a dividend, and the most common reason for early exercise of a put is to manage interest rate exposure.  These two conditions are the most common but others exist. If you are a holder of an option, you control the exercise of the option.  If you are short an option, you can be assigned when the holder chooses to exercise an option early.

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Market Report Mixed markets on Taper Talk
By Todd Horwitz on Aug 22, 2021 at 8:32:53 AM

 Market Report Mixed markets on Taper Talk

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Markets remain slow as we approach the end of summer. Last week markets were slightly lower with a one-day selloff after the FOMC minutes were released. The talk of tapering sent markets lower while remaining in consolidation.

Markets are in the dog days of summer in extended period of congestion. The markets are telling us that a big move is coming with direction to be determined. The trend is higher in all indexes except for the Russell.

The FED reports from Jackson Hole, Wyoming this week. There isn’t much expectation no matter what they say or do. The FED has been hinting towards tapering but usually back down when the markets react adversely. The biggest problem is the FED refuses to acknowledge inflation.

The option markets continue with a bullish sentiment, Call buying led the way again however the rest of the top 5 strategies for the week were mixed. Bull puts have slowed replaced by Bear puts and Calls. The VIX remains weak and shows no real signs of moving.

The bull symbols had a little variety this week with AAPL, SPY, NVDA, IWM and TSLA leading the way. On the Bear side commodity ETFs led the way with GLD, UNG, AG leading the way.

As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control. 

Todd “Bubba” Horwitz

BubbaTrading.com



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