Category: Stock Research

  • Pitney Bowes Inc. (PBI)

    Profile Pitney Bowes Inc. is a global provider of software, hardware and services to enable both physical and digital communications and to integrate those physical and digital communications channels. The Company offers a range of equipment, supplies, software, services and solutions for managing and integrating physical and digital communication channels. Many of the company’s solutions…

  • The Long Iron Butterfly: an intermediate strategy

    The Long Iron Butterfly is an intermediate strategy that can be profitable for stocks that are rangebound. It is the combination of a Bull Put Spread and a Bear Call Spread. Often, traders will leg into the Long Iron Butterfly, first trading a Bull Put Spread just below support and then as the stock rebounds…

  • Covered Call – One of Income Strategies

    The Covered Call is the most basic of income strategies, yet it is also highly effective and can be used by novices and experts alike. The concept is that in owning the stock, you then sell an Out of the Money (stock< call strike price) call option on a monthly basis as a means of…

  • The Three Elements of Successful Trading

    Any successful trading program must take into account three important factors: price forecasting, timing, and money management. 1. Pricing forecasting price forecasting indicates which way a market is expected to trend. It is the crucial first step in the trading decision. The forecasting process determines whether the trader is bullish or bearish. It provides the…

  • Bull Put Spread: An Intermediate Strategy

    The Bull Put Spread is an intermediate strategy that can be profitable for stocks that are either rangebound or rising. The concept is to protect the downside of a Naked Put by buying a lower strke put to insure the one you sold. Both put strikes should be lower than the current stock price so…

  • Taxation of Option Transactions

    Taxation of option transactions is no simple matter. Here we attempt to illustrate the basic principles. Profits and losses on options trading are treated as capital gains and losses. Therefore, options profits and losses are subject to all the regular rules that pertain to all capital gains and losses. In general, long-term capital gains qualify…

  • Continuation Chart Patterns

    Continuation patterns usually indicate that the sideways price action on the chart is nothing more than a pause in the prevailing trend, and that the next move will be in the same direction as the trend that preceded the formation. Continuation patterns are usually shorter term in duation and are more accurately classified as near…

  • The Head and Shoulders Reversal Pattern

    What is probably the best known and most reliable of all major reversal patterns is the head and shoulders reversal. Most of the other reversal patterns are just variations of the head and shoulders.   The left and right shoulders (A and E) are at about the same height. The head (C) is higher than…

  • Options Trading Procedures

    Every options trader needs to be familiar with the basic features of the market. So, we explore the action that takes place on the market floor and the ways in which traders away from the exchange can have their orders executed on the exchange. Essentially, there are three types of people on the exchange floor:…

  • The Significance of Support and Resistance

    What is support? Support is a level or area on the chart under the market where buying interest is sufficiently strong to overcome selling pressure. as a result, a decline is halted and prices turn back up again. Usually a support level is identified beforehand band a previous reaction low. What is resistance? Resistance represents…