I was fortunate enough to stumble upon MarketClub in my early days of figuring out this online business stuff. As a trader I decided to start a blog about my trading adventures and as such needed a solid trading affiliate program to promote, enter Marketclub.

Marketclub provides a wide variety of tool and resources for traders looking to intelligently trade stocks, forex, and binary options. I signed up to trial Marketclub’s offerings and was pleasantly surprised at the sheer amount of tools included within the Marketclub service. The main event is the company’s Trade Triangle service which uses a proprietary formula to identify appropriate entry points for traders looking to initiate positions. The Trade Triangle service identifies high probability daily, weekly, and monthly entry points. Not only is this service great for Marketclub subcribers but it is also great for Marketclub affiliates in that the company provides a number of attractive link/banners that entice traders into opting in to the service.

Marketclub Affiliate Program Invitation

 

MarketclubThe highest converting banner is the one highlighted to the right. Traders who are interested in knowing which stocks the Trade Triangle system deems most attractive at this moment can gain access by simply entering their email address. As the referring affiliate you would receive $3 for each email submission. This is the true definition of win-win. And it doesn’t stop there. Marketclub affiliates not only receive the $3 lead commission, but if the person who submitted their information went on to subsequently purchase other “Marketclub” products/services, the referring affiliate would receive 40% of the sales price. From my experience out of 100 people who submit their email address for the Trending Stocks service, 10-12% upgrade to purchase at the very least a trial subscription to the Trade Triangle service which pays an additional commission.

In addition to the Trade Triangle signals functionality MarketClub provides a variety of other functionality to boost your trading performance including:

MarketClub’s Chart Portfolio allows you to create a personalized watch/active trading list which can be instantly analyzed, reviewed, downloaded, or studied for quick market analysis.

Smart Scan helps you to quickly find winning trades in stocks, futures, mutual funds, precious metals and foreign exchange. Our proprietary scanning tools identify charting patterns that are primed for large moves.

MarketClub’s Data Central tool allows you to access downloadable historical data. If you have a special trading program, spreadsheet, or back-testing program, you can access historical data in comma-delimited, tab-delimited, ASCII or metastock format.

MarketClub also provides Streaming Charting Tools that will give you those extra features that you may not currently have on your online discount broker platform. BARRONS business magazine said it best, “…a terrific charting tool,” they also recommended to their readers to “keep an eye on this site even if you’re not ready to dive in; it’s poised to keep growing.”

The Trader’s Blog allows members to share ideas with fellow traders along with the MarketClub team. We answer questions from traders around the world, post tips, share trading ideas, and post online market analysis videos based around MarketClub’s methodology and tools.

Trade School is your own personal trading university where you set the curriculum with some of the most well known professional traders in the world. These audio (MP3) seminars and PDF workbooks will have you following along with trading greats like Linda Raschke, Mark Cook, and Chuck LeBeau. These seminars cover various trading techniques and information on foreign exchange, futures, day trading, money management, stocks, psychology, indexes, options and more.

MarketClub is proud to announce a breakthrough in chart analysis with their revolutionary new “Talking Chart” technology. Only at MarketClub can you experience charts that talk to you and tell you what is going on in the market. No other website has this technology as we invented it.

MarketClub has Associated Press, RTT (Real-Time Trader) News and Dow Jones News, top international and domestic news services whose wires come directly into MarketClub.

To join the Marketclub team simply click on the link below:

Marketclub Affiliate Program Invitation

 

Marketclub

 

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If the following poem entitled, “Autobiography In Five Short Chapters” describes your current situation (at least through 4 chapters of it) then you need to consider seeking alternative paths to health, wealth, and happiness. Change is inevitable. Whether you want to or not, circumstances will eventually arise to push you into a new dimension of your life. This doesn’t mean it will be all bad, just different. I think we’ve all been down this road before. Our unwillingness to change is simply a matter of releasing what is comfortable and trying something new. Embrace the newness, take the class you always wanted to take, explore starting that business you always wanted to start, meet new people and watch your world open up to endless possibilities.

Autobiography In Five Short Chapters

Chapter I

I walk down the street.
There is a deep hole in the sidewalk.
I fall in.
I am lost… I am hopeless.
It isn’t my fault.
It takes forever to find a way out.

Chapter II

I walk down the same street.
There is a deep hole in the sidewalk.
I pretend I don’t see it.
I fall in again.
I can’t believe I am in this same place.
But it isn’t my fault.
It still takes a long time to get out.

Chapter III

I walk down the same street.
There is a deep hole in the sidewalk.
I see it there.
I still fall in… it’s a habit… but,
my eyes are open.
I know where I am.
It is my fault.
I get out immediately.

Chapter IV

I walk down the same street.
There is a deep hole in the sidewalk.
I walk around it.

Chapter V

I walk down another street.

– Portia Nelson

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VIX Volatility IndexWith major US indices approaching multi-year highs and volatility, as represented by the VIX, seemingly heading towards the 15-level we decided to look for opportunities to purchase cheap protection in names that have outperformed the broader market. Investors appear to have entered a state of complacency now that 2Q earnings season has largely passed and the Fed and ECB have committed to do what is necessary to prevent further significant economic deterioration. To us, this signals an appropriate time to lock in yearly gains and purchase cheap protection against the unknown as it is better to buy protection when you can, rather than when you need to.

Technical Take: The VIX continues to drift down near a retest of a significant 2011 low. The indicator has paused just above support. VIX is flashing a potential “big move” or volatility expansion. The price pattern suggests the path of least resistance is up. Resistance is at the 200 DMA near 21.20; then 27.20.

For purposes of our analysis we let current implied volatility rankings, along with year-to-date performance and average options volume, guide us in identifying the most appropriate names to purchase protection on through year end.

Financials Vol Appears Attractive: Much to our surprise 4 out of the top 15 spots in our list emanate from the financials sector. 6-month implied volatility in Goldman Sachs (GS), Wells Fargo (WFC), Discover Financial (DFS), and US Bancorp (USB) is currently trading at or just above 52-week lows. Purchasing protection in these heavy macro-influenced names could make a lot of sense here. For example, investors could purchase January at-the-money puts in GS for roughly $9.30, approximately 9% of notional, using yesterday’s closing prices. For comparison purposes, an at-the-money put purchase in GS a month ago would have cost over 10.5% and two months ago 12.5%.

Options Trading Recap: We continue to see bullish tech flow highlighted by October 60 call buyers in QCOM and Sep 31 call buyers in the XLK. Other notable options trading activity included upside call buyers in the GDX Gold Miners ETF, put spread buyers in the XOP, and over 10k RCL Sep 25 puts were purchased in early trading.

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Facebook OptionsThe Wall Street Journal ran a timely piece on Facebook heading into several lockup expirations over the coming weeks. We were seeing increased options activity, primarily downside put spread buyers in Facebook options as investors seem to be positioning for continued weakness in the name through year end. Trading was highlighted by buyers of the December 20-15 put spreads and sellers of the December 29 calls.

Looking out at open interest in downside puts over the next several months it becomes pretty apparent that options traders see an orderly decline down to the 15 level by December, which should capture the entirety of the locked up shares release. Check out the article I was featured in by clicking on the link below (WSJ.com subscribers only…sorry!)

Philip A. Saunders Feature in the Wall Street Journal

FYI – An updated listing of recent media/press is accessible via the tab at the top of the site.

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RCL 2Q Earnings Volatility Preview: Royal Caribbean (RCL) is scheduled to report 2Q12 financial results tomorrow morning before the market opens. August at-the-money options in RCL appear to be on the cheaper side heading into earnings. Using yesterday’s closing prices, at-the-money options are implying a 4.3% earnings related move, below its average historical earnings move of +/-7.2%. A summary of recent RCL earnings moves is included below:

 RCL CCL Options

 

RCL/CCL Earnings Volatility Comparison: While RCL options appear attractive ahead of earnings, industry peer Carnival Corporation (CCL) may be the better play. CCL has averaged a +/-3.2% move over RCL’s last eight earnings announcements. The 3.2% average move is roughly in line with the earnings volatility CCL has averaged over its earnings announcements. August options in CCL do not seem to reflect “RCL earnings volatility,” with August at-the-money options trading below both September and January options on a volatility basis and in the 22nd percentile of 52-week vol rankings.

Buy August 32 Straddles in CCL: Using yesterday’s closing prices, the August 32 straddle in CCL could be purchased for $1.80 with breakeven levels of $30.20 (-5.3%) on the downside and $33.80 (+5.9%) on the upside.

Recent Options Trading: Over the last month, we’ve highlighted the same type of trading in RCL and CCL, with investors implementing a long RCL / short CCL trade using options. Yesterday, the trend continued, with investors selling 9k September 24 puts in RCL, as well as selling 6700 September 32 calls in CCL. Other notable trading activity in the cruise lines from yesterday included buyers of August 32-31 1×2 put spreads in CCL.

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The energy sector, along with the rest of the market, has taken a beating over the last month but with the price of crude approaching significant support we searched for ways to monetize a “bottoming” view using options. For purposes of our analysis we examined the XOP, the SPDR S&P Oil & Gas Exploration & Production ETF, in hopes of identifying trends and trading themes in the ETF as well as in the component names.

  • XOP Volatility & Skew Analysis: XOP 3 month at-the-money implied volatility of 42% currently ranks in the 71st percentile of 52-week volatility levels. 3-month skew which we define as 25-delta put volatility minus 25-delta call option volatility is currently trading around year highs levels. The combination of high implied volatility and elevated skew naturally led us to consider various strategies that involved the sale of downside puts.
  • Sell XOP Sep $40 Puts: With identified support in the $40 region we recommend investors take advantage of elevated implied vol and skew by selling the Sep $40 puts. Using yesterday’s closing prices the Sep $40 puts could be sold at $1.75. Maximum profit on the put sale is limited to the premium collected, $1.75, which would represent a stand-still return of 3.6%. The trade remains profitable with shares of the XOP trading anywhere above $38.25 (Strike – Premium) upon expiration. Shares last traded near $38 in August of 2010. Investors would need to be comfortable getting long XOP should shares trade below $38.25 at expiration. A graphical representation of the P/L of the Sep 40 put sale is highlighted below:

XOP Options

  • Recent Energy Related Trading: Yesterday we saw investors selling 15k Sep $43 puts in the XOP outright collecting $2.54 in the process. Other notable recent energy trading included buyers of 15k XLE June 65-60 put spreads, sellers of 9k June 63 puts in the XLE, buyers of July 38 calls in the OIH, and buyers of 30k Sep 47-43 put spreads in the XOP.

Selling Puts On Energy XOP ETF

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Gold A Safe Haven No More? – GLD Options Trading Strategy

June 5, 2012

Trading in Gold related instruments has been active during the most recent market downturn but not as active as one would expect and definitely not in the direction one would expect with equities collapsing. As of yesterday’s close the S&P500 is down 9% since May 1 primarily on European concerns and less than encouraging US […]

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Watch For Volatility Around BBY Earnings

May 21, 2012

The Week Ahead. Our Earnings Volatility Monitor highlights companies scheduled to report earnings over the coming week, paying close attention to what near-term options are implying for earnings moves in comparison to how the names have moved historically on earnings. Fairly light earnings calendar this week. The most notable names set to release results include […]

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The Weekly Options Report: Markets Are Looking gRIMM?

December 8, 2011

What seems like our favorite tech company of late, Research In Motion (RIMM), is scheduled to report 3Q financial results next week on Thursday December 15th after the market close. Shares of RIMM have averaged a +/-10% move over its last 8 earnings announcements, with 5 of the reports pushing shares strongly to the downside […]

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How To Profit During Times Of Economic Chaos [video]

December 7, 2011

Mike Dillard and the team over at The Elevation Group have put together a series of videos revealing how to create (or recover) incredible wealth during today’s economic crisis. His team has generated returns of over 280% since 2008, while most investors are still recovering from the massive losses incurred during the down swing. So […]

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