Posts by elong

Daily Trading Markets Commentary

»Posted by on Dec 20, 2018 in Uncategorized | 0 comments

Stocks are steady to mixed this morning as traders adjust to another Fed rate hike. Mostly as expected, the Fed raised its benchmark interest rate a quarter-point. This was the fourth rate increase this year and the ninth since it began normalizing rates in December 2015. Fed officials did however slightly lower their projection of rate hikes down to two for next year. The problem seemed to be the language from Fed Chair Jerome Powell, in the post-meeting press conference, which the market digested as somewhat mixed and adding more “uncertainty” than “clarity”, hence we sold-off aggressively the more Powell spoke. Keep in mind, the S&P 500 has now fallen for a record 7th straight Fed Day, which is a streak that began...

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Fractal Finance 1.0 Released

»Posted by on Aug 8, 2018 in Announcements, Shop Talk, Uncategorized | 0 comments

Fractal Finance 1.0 Released

The new version of Fractal Finance has been released. Increased accuracy and ease of use are just a few of the features. We are immediately updating our ROXI system with this new version. Additionally, I have a few more surprises for you currently in development and on the way. Stay tuned for more to come.

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Fractal Finance Online Event

»Posted by on Jun 11, 2018 in Announcements, Shop Talk, Uncategorized | 0 comments

Fractal Finance Online Event

Join Erik Long as he discusses trading with fractals. In addition to the presentation, Erik will show you how he uses the new Fractal Predictor. This extraordinary indicator identifies hidden fractal attractors in the market and uses them to predict price movement. Forecasting with a high degree of accuracy, the Fractal Predictor is sure to be an arsenal in every traders war chest. The “Fractal Finance” online event is scheduled for June 13th at 4:30 ET. We look forward to seeing you there. Book Your Spot...

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Selling Options

»Posted by on May 3, 2012 in Shop Talk | 0 comments

At this point, you might well ask, who sells the options that option buyers purchase? The answer is that options are sold by other market participants known as option writers, or grantors. Their sole reason for writing options is to earn the premium paid by the option buyer. If the option expires without being exercised (which is what the option writer hopes will happen), the writer retains the full amount of the premium. It should be emphasized and clearly recognized, however, that unlike an option buyer who has a limited risk (the loss of the option premium), the writer of an option has unlimited risk. His loss, except to the extent offset by the premium received when the option was written, will be whatever amount the option is “in-the-money”...

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Buying Put Options

»Posted by on Mar 3, 2012 in Shop Talk | 0 comments

Whereas a call option conveys the right to purchase (go long) a particular futures contract at a specified price, a put option conveys the right to sell (go short) a particular futures contract at a specified price. Put options can be purchased to profit from an anticipated price decrease. As in the case of call options, the most that a put option buyer can lose, if he is wrong about the direction or timing of the price change, is the option premium plus transaction costs. Example: Expecting a decline in the price of gold, you pay a premium of $1,000 to purchase an April 300 gold put option. The option gives you the right to sell a 100 ounce gold futures contract for $300 an ounce. Assume that, at expiration, the April futures price has—as you expected—...

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