After the Swiss Franc debacle, now is a good time for traders to look at buying a call option on FXCM (FXCM).
Call Or Put Options?
With earnings season officially underway, now is a good time for traders to look at buying a call option on Alcoa (AA).
With 2015 officially underway, now is a good time for traders to look at buying a call option on Tesla Motors (TSLA).
Former smartphone pioneer, BlackBerry (BBRY), is attempting to shake up the industry. The company is trying to win back customers with a new phone. BBRY shares are currently trading at $9.87, up 28% year-to-date. The stock is trading 21% below the 52-week high of $12.54 and is 64% above the 52-week low of $6.01. Is […]
By now, everyone’s pretty much heard of Tesla Motors (TSLA), the world’s most popular electric car maker. However, the stock has been getting hammered over the last week or so. TSLA shares are currently trading at $209.97, up 44% year-to-date. The stock is trading 28% below the 52-week high of $291.42 and is 54% above […]
I’m sure you’re familiar with Amazon.com (AMZN), as it’s the world’s largest online retailer. The company is in the spotlight with record spending on this year’s Cyber Monday. AMZN shares are currently trading at $317.20, down 18% year-to-date. The stock is trading 22% below the 52-week high of $408.06 and is 12% above the 52-week […]
Unusual Options Trading Activity
Recently, there has been some unusual options activity in United Continental (UAL). As many of you know, unusual options activity can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.
Recently, there has been some unusual options activity in Barrick Gold (ABX).
Recently, there has been some unusual options activity in Market Vectors Oil Services ETF (OIH).
As many of you know, unusual options activity can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.
This week we’re taking a look at unusual options trading activity in SeaDrill Limited (SDRL) and JD.com (JD). As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term. This is something professional options traders pay a lot of […]
This week we’re taking a look at unusual options trading activity in General Mills (GIS) and SunEdison (SUNE). As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term. This is something professional options traders pay a lot of […]
The biggest VIX trade you may ever see occurred recently. What’s it telling us?
A large VXX options trade suggests volatility could be capped by the end of next month.
A huge VXX options trade suggests volatility could be headed back down by next month.
Crude oil has crashed and it’s taken the entire energy sector with it. The price of a barrel of crude has gone from $105 to $55 in about six months, a 48% decline. That’s officially a crash. Meanwhile, the energy sector has dropped roughly 20% overall during that period. However, the collateral damage has been […]
With just a couple weeks to go before the end of 2014, volatility has returned to the financial markets. We couldn’t quite make it through the rest of the year without one more bout of investor fear. The VIX has climbed above 20 for only the third time this year. And while that’s not a […]
A few weeks ago, I talked about possible oil trading strategies. At the time, oil was down to $75 a barrel, and it seemed cheap. Since then, oil has plummeted all the way to $65 a barrel, and it may even fall to $60 before all is said and done. Back then, my advice was […]
Last week, I touched on Microsoft’s (MSFT) purchase of Nokia’s (NOK) phone business. That article was a neutral look at the deal. This time around, I’m going to give you my opinion on this game changing acquisition. To be more specific, I’m going to defend MSFT. You see, most of what I’ve read about the […]
If you read or watch financial news, you’re probably hearing plenty about Facebook (FB). After all, it’s the largest social network in the world and has something like 1 billion users. And the stock is finally trading above its IPO price. But, there’s another online community doing extremely well – and it doesn’t get nearly […]
Imagine a basket of major assets. In this basket are all the major stock indices, all the big commodities, and even all the major currencies (versus the Dollar). Over the last 12 months, which of these assets do you think has performed the best? The S&P 500 is up nearly 24% over the period. Not […]
If you’ve been following stocks at all recently, then you’ve likely heard of Tesla Motors (TSLA). It’s the “it” company right now. Tesla, of course, develops electric vehicles. The Model S is the company’s only current automobile for sale, but another vehicle (Model X) will be available in 2014. What makes the Model S unique […]
As bad as last week was for the broad market, it was far worse for Apple (AAPL). True, the S&P 500 was down 2% for the week, while the NASDAQ 100 dropped 2.7%. But those don’t come close to AAPL’s steep decline of over 9% for the week. Moreover, the retail/tech giant is down 26% […]
Last summer the worst drought in 70 years baked the heartland of America to a crisp. The extreme heat and lack of rainfall baked fields of corn into worthless husks. The drought ended up destroying 13% of last year’s corn crop. It resulted in the smallest production since 2006. As the temperatures rose, so did […]
The Spread Trader
Gold has been on an incredible, historic run. At the end of 2008, the yellow metal was trading at roughly $700 per ounce. For the next four years, it would do nothing but head higher. In fact, in August 2011, gold hit a high of over $1,900 per ounce. And even though the price pulled […]
TIBCO Software (TIBX) was on quite a roll going into 2012. And for good reason… TIBCO’s “two-second advantage” gives their customers the ability to capture the right information, at the right time, and act on it preemptively for a competitive advantage. As their CEO, Vivek Ranadive, puts it… “A little bit of the right information […]
Some of the hottest stocks of 2012 are those of companies that specialize in 3-D printing. In a nutshell, 3-D printers convert digital objects in computer-aided design software or 3-D scanning and sculpting devices into physical objects made from plastic, metal, and composite print materials. The two major players in 3-D printing are 3D Systems […]
There’s no doubt about it, tech stocks have had a rough few months. And the big daddy of all tech stocks, Apple (AAPL), has been no exception. In case you didn’t notice, after reaching a new all time high of $705 back on September 21st, Apple’s stock has tumbled $162 lower to around $543 today. […]
So far the Fed’s latest action hasn’t made a big impact on stock prices. In fact, the markets have been trending modestly lower after an initial surge higher in the first days following the announcement of QE3. What’s behind the markets sluggish performance? Put simply, weak economic data. Despite the introduction of QE3, economic data […]
Fall is here. It’s a beautiful time of year here in Arizona. The temperatures are falling and it’s once again tolerable to be outside… at least without a pool or some kind of air conditioning. But it’s also a great time of year to be a couch potato. Especially, if you’re into sports or politics. […]
Options Trading Strategies
The reverse iron butterfly spread is a complex, debit spread strategy which benefits from movement in the underlying instrument. It’s similar in concept to a short butterfly spread, except it’s a debit spread. A trader profits from a reverse iron butterfly spread when the underlying stock rallies or sells off. A reverse iron butterfly spread […]
The short condor spread is a complex credit spread strategy which benefits from movement in the underlying instrument. A trader profits from a short condor spread when the underlying stock rallies or sells off. A short condor spread is made up of four options trades at once. It can be done with either all calls […]
A Short Straddle is a neutral options strategy which produces a profit when the underlying stock doesn’t move much up or down. It’s essentially the opposite of a Long Straddle which profits when the underlying stock makes a big move up or down. So, if you think your stock is going to move sideways for […]
A Long Straddle is created by buying both a put and a call with the same terms. In other words, you buy both a put and a call on the same underlying stock, with the same strike price, and the same expiration date. A straddle purchase allows the buyer to make big potential profits if […]
The iron butterfly spread is a complex, neutral, credit spread strategy, similar to a long butterfly spread. A trader profits from an iron butterfly spread when the underlying stock is stagnant or trades in a tight price range over the life of the spread. An iron butterfly spread is made up of four options trades […]
A delta neutral position is when two or more positions are used to establish a neutral market position. A trader can apply a delta neutral position with stock and one or more options, OR two or more different options. Whatever combination of securities used, the delta of the two securities offset each other so the […]