By Mike Parnos of Online Trading Academy*

In the first of this 2-part series (“Covered Calls, Part 1 of 2) we discussed covered calls. There are good points and bad points to the strategy. My biggest problem with covered calls is that you're exposed for the entire value of your stock down to zero.

That's a lot of risk -- too much -- unless you know how to control it. Some people are obsessed, which is hardly breaking news. Controlling one's obsessions is easier said than done. But, they say that admitting the problem is half the battle.

By John Netto of One Shot – One Kill Trading*
Posted: May 2, 2008

When attempting to gauge what direction the market is moving throughout the day or week, I use a few key indicators to measure short-term and longer-term market strength. Along with the Dow Jones Tic ($TICK), the Arms Index ($TRIN) and current price action, I love to chart the ratio between advancing versus declining issues on the NYSE. Using eSignal software, the symbol for that is $ADD.

A few key psychological reasons help us understand why the ratios between advancing and declining issues can be so effective. The first is that intraday action takes place around a point of control. A key mental point traders are aware of is this: If an issue is up, down or unchanged on the day.