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Options Trading

TradeKing Midday Market Call Recap - $SPX & $JNPR

Options TradingTradeKing

Featuring @BrianOverby  &  @MNKahn

Quick Takes Pro Market Technician Michael Kahn Analyzes the S&P 500:

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SPX was trading at 2,063.04, up 9.37 on the day. As Michael indicated, SPX had a big October rally that was followed by a November pullback. We’ve since hit a new support level, of sorts, with SPX bouncing off that support yesterday and continuing into today. Michael believes the long bull market trendline is broken. The recent bounce may be a relief rally following the Paris terrorists attacks but he thinks SPX will need to break out of the overhead resistance area before a new bull trend can really be established again.

Michael Kahn’s Chart of the Day: Juniper Networks, Inc. (JNPR):

Juniper Networks Inc. was trading around the 29.21 level during the time of analysis, above its 50-day moving average of 28.46. As Michael points out, Juniper has seen a choppy rally over the last year. There was a big move up in September, prior to the overall market rally we saw in October. After the break out, JNPR then made a successful test of its support level followed by recovery. At this point Michael believes there’s still a little more room for JNPR’s bullish run to continue.

TradeKing “Options Guy” Brian Overby Analyzes Juniper Networks Inc.’s Volatility & Dividends:

Juniper Networks Inc’s 30-day Implied Volatility (IV) looks good for the buying of option contracts as Brian points out that we have a historically volatile stock with a relatively low implied volatility.

Juniper Networks Inc. pays quarterly dividends with their next ex-dividend date being 11/27/2015 with a 1.34% dividend yield. Their next earnings announcement is slated for 01/26/2016.

Brian Overby Shares JNPR Paper-Trading Strategies:

Brian’s paper trades for the day are Long Calls, a bullish strategy. He’ll be exploring 2 different scenarios. One trade will be more speculative with Brian purchasing an out-of-the-money long-term call while the second trade will be more conservative with an in-the-money call option being purchased that expires in the short-term.

Brian’s First Paper Trade - Long Call #1

- Buy 1 December 18th 2015 JNPR 30 Call

- 31 days to expiration

- Bid 0.86, Mid 0.89,  Ask .92 for the contract

- Debit is 0.92 at the ask

- Maximum potential loss: $0.92

- Maximum potential gain: Unlimited, in theory.

- Total commission to enter this trade at TradeKing is $5.60

Brian’s First Paper Trade - Long Call #2

- Buy 1 December 4th 2015 JNPR 29 Call

- 17 days to expiration

- Bid 1.18, Mid 1.23,  Ask 1.27 for the contract

- Debit is 1.27 at the ask

- Maximum potential loss: $1.27

- Maximum potential gain: Unlimited, in theory.

- Total commission to enter this trade at TradeKing is $5.60

Important notes: Option prices are given as a per-contract amount. Multiply loss and gain figures by 100 shares and by the number of contracts traded to determine the amount of the full potential loss or full potential gain. No additional calculations are needed to determine commission costs.

TradeKing Options Tools used:

- Detailed JNPR Quote

- Long Call

- TradeKing Volatility Charts

- TradeKing Options Pricing Calculator

- TradeKing Probability Calculator

- TradeKing P&L Calculator

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