OptionsHouse

Options Trading News

April 8, 2013  Mon 9:12 AM CT

FFIV: SEE CHART GET CHAIN FIND STRATEGIES
Everything's so compressed. First you get the shock, the unbelievable two-by-four to the head, from this hideous employment number. Stocks then get hammered, as well they should. That's the bear phase.

Then we get a realization that the 10-year is yielding through 2 percent and the 30-year is about 2.5 cent. That means stocks with 3 percent yields are terrific.

TheStreet.com logoThen we get a wave of buying from overseas seeking a home.

Then we get a realization that the cyclicals have been pummeled for days and that perhaps they are overdone.

Then we see that there was no panic, and we buy EXCEPT where there is earnings weakness possibilities, like F5.

There's only one issue. This cycle starts anew EVERY DAY, and Monday will be the next one!

Disclosures: Cramer's charitable trust has no positions in any stocks cited in this article.
Share this article with your friends


Related Stories

FFIV

Will downside trend continue for F5?

January 25, 2016

The network-technology company reported bearish quarterly results in October and is down 20 percent in the last three months.

OptionsHouse

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »