To The Moon

$TVIX$ $UVIX$  By Lawrence G. McMillan The major indices are all enjoying a booming bull move to new all- time highs $SPX, $NDX, and $RUT (while the Dow is closing in on its highs as well). This display of strength has occurred in the face of potential geopolitical worries, which indicates that "the market" isn't too concerned with those. $SPX has strong support at 7000 -- the previous all-time highs -- as well as minor support at 7125 and 7050. The equity-only put-call ratios remain solidly bullish in their outlook for stocks. They continue to drop steadily and sharply. As long as they are declining, that is positive for the market. Breadth has been teetering on the verge of a sell signal,

By Lawrence G. McMillan Some traders prefer to see columns of numbers, and others—myself included—prefer to look at graphs or charts. A “profit graph” is a graph of the potential profits and losses from a position. With options, it is possible to describe most of the major strategies by the shape of their profit graphs. A simple example should be sufficient to demonstrate the concept. Example: Suppose that XYZ common stock is trading at 50, and the XYZ July 50 call is selling for 3, or $300. The profit table shown here details the potential profits and losses at various XYZ prices at July expiration. The same information is shown in the profit graph. The image below, which shows that this position has a limited loss on the downside and can make theoretically unlimited profits on the upside

$GOTU$  By Lawrence G. McMillan Join Larry McMillan as he discusses the current state of the stock market on April 27, 2026. https://www.youtube.com/embed/XF5RotmuSkk$GOTU$ 

By Lawrence G. McMillan There are two major approaches to analyzing markets—technical and fundamental. Most investors are familiar with fundamental analysis. That is the process by which analysts attempt to forecast the future profits of a company by analyzing their market penetration, pricing structure, and other things having to do with the actual operation of the company’s business. Technical analysis, on the other hand, has nothing at all to do with the tangible operations of the company. Rather it is an analysis of the price of the company’s stock. Technicians (practitioners of technical analysis) feel that past price patterns leave valuable clues as to the future direction of prices. Technical analysis can be applied to any price pattern—stock, bonds, futures, and so on. There is mer

By Lawrence G. McMillan There are two major approaches to analyzing markets—technical and fundamental. Most investors are familiar with fundamental analysis. That is the process by which analysts attempt to forecast the future profits of a company by analyzing their market penetration, pricing structure, and other things having to do with the actual operation of the company’s business. Technical analysis, on the other hand, has nothing at all to do with the tangible operations of the company. Rather it is an analysis of the price of the company’s stock. Technicians (practitioners of technical analysis) feel that past price patterns leave valuable clues as to the future direction of prices. Technical analysis can be applied to any price pattern—stock, bonds, futures, and so on. There is mer

$TVIX$ $UVIX$  By Lawrence G. McMillan Several of the major indices ($SPX, $NDX, and $RUT) have made and held new all-time high ground recently. Pullbacks have been small, and it appears that there is still an appetite for buying, despite what might be worries from the Middle East. There is support for $SPX at 7000 (the previous highs). It would not be ideal for the bullish case to see $SPX pull back below 7000, for that would raise the possibility that the upside breakout was false. But, if it did, there should be support near 6750 and then stronger support near 6600. Equity-only put-call ratios continue to decline at a rapid pace. There have been several days recently where call buying was hea

$GOTU$  By Lawrence G. McMillan Join Larry McMillan as he discusses the current state of the stock market on April 20, 2026. https://www.youtube.com/embed/kvHxFKmQyiA$GOTU$ 

$CVB.AU$  By Lawrence G. McMillan The major indices are on a roll, with S&P 500 ($SPX; SPY), NASDAQ-100 ($NDX; QQQ) and now Russell 2000 ($RUT; IWM) all making new all-time highs simultaneously. Back in January and February, $SPX made a new all-time high by a few points on several occasions, but it was never able to put together a strong breakout rally as follow-through. Eventually, that was onerous, and the market fell. But now it appears to be adding to the breakout gains, which is a very positive sign. Technically, there should now be support at 7000 (the old highs). It would be disappointing to see $SPX trade back below 7000 now, but if it did, there should be support at 6800, and then at the bottom of the gap near 6600. There is no

By Lawrence G. McMillan One doesn’t often consider butterfly spreads or condors, say, as short-term speculative strategies. However, they can be, if you set them up that way. The main problem with butterflies, in particular, is that they don’t reach their profit potential until very near expiration (unless the strikes are extremely far apart). Typically a butterfly spread is constructed in this manner: Example:Buy 1 XYZ May 50 call @ 6 Sell 2 XYZ May 60 calls @ 2 Buy 1 XYZ May 70 call @ 1 Net debit : 3 points, or $300 The spread has limited loss and limited profit. The maximum loss is equal to the initial debit of $300 paid for the spread. The maximum loss would be incurred if XYZ were below 50 or above 70 at expiration. The maximum profit occurs at the middle strike at expiration, and in

$GOTU$  By Lawrence G. McMillan Join Larry McMillan as he discusses the current state of the stock market on April 13, 2026. https://www.youtube.com/embed/swkoOcxjtJE$GOTU$