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  • Call Options Or Put Options On SolarCity (SCTY)?

    Call Options Or Put Options On SolarCity (SCTY)?

    SolarCity (SCTY) provides solar energy systems to residential and commercial customers in the US.  Like Tesla (TSLA), SCTY is an Elon Musk company.  That means it will generate plenty of buzz and excitement. SCTY is currently trading for $44.52.  The stock was down 14% yesterday but is up a whopping 273% year-to-date.  The shares are [...]

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    | May 22, 2013 | 0 Comments

Call Or Put Options?

Call Options Or Put Options On SolarCity (SCTY)?

Call Options Or Put Options On SolarCity (SCTY)?

SolarCity (SCTY) provides solar energy systems to residential and commercial customers in the US.  Like Tesla (TSLA), SCTY is an Elon Musk company.  That means it will generate plenty of buzz and excitement. SCTY is currently trading for $44.52.  The stock was down 14% yesterday but is up a whopping 273% year-to-date.  The shares are [...]

Call Options Or Put Options On Groupon (GRPN)?

Call Options Or Put Options On Groupon (GRPN)?

Groupon (GRPN) is the leading online, local commerce marketplace – which connects merchants to consumers by offering goods and services at a discount.  It’s basically an online deal site.  And, it’s very likely that you or someone you know has used a “groupon” before. GRPN’s currently trading for $6.89 per share, and has risen 42% [...]

Call Options Or Put Options On Electronic Arts (EA)?

Call Options Or Put Options On Electronic Arts (EA)?

Electronic Arts (EA) develops game software content and services for video game consoles, PCs, mobile phones, and others.  EA has been around for a long time and has developed and published many popular games over the years.  Currently, the company is the second largest video game developer in the US. EA is currently trading for [...]

Call Options Or Put Options On Apple (AAPL) – Part 2?

Call Options Or Put Options On Apple (AAPL) – Part 2?

Last week, we discussed a call or put scenario for retail/tech giant Apple (AAPL) just after earnings were released.  It turns out, put buyers would have immediately seen gains, while call buyers would be in the black if they held on to their options for just a few days.  It’s possible that both sides were [...]

Call Options Or Put Options On Apple (AAPL)?

Call Options Or Put Options On Apple (AAPL)?

Apple (AAPL) develops mobile communication and media devices, personal computing products, and portable digital music players.  Of course, you probably already know that.  Chances are you own at least one Apple product and maybe more. Apple’s trading at $406.13 (prior to earnings) and is currently down 23% for the year.  The shares are down 42% [...]

Unusual Options Trading Activity

HMY, CTSH Options – Unusual Trading Activity – May 17, 2013

HMY, CTSH Options – Unusual Trading Activity – May 17, 2013

This week we’re taking a look at unusual options trading activity in Harmony Gold Mining (HMY) and Cognizant (CTSH). 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 [...]

HPQ, BTU Options – Unusual Trading Activity – May 10, 2013

HPQ, BTU Options – Unusual Trading Activity – May 10, 2013

This week we’re taking a look at unusual options trading activity in Hewlett-Packard (HPQ) and Peabody Energy (BTU). 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 [...]

OIS, C Options – Unusual Trading Activity – May 3, 2013

OIS, C Options – Unusual Trading Activity – May 3, 2013

This week we’re taking a look at unusual options trading activity in Oil States International (OIS) and Citigroup (C). 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 [...]

SLV, TLM Options – Unusual Trading Activity – April 26, 2013

SLV, TLM Options – Unusual Trading Activity – April 26, 2013

This week we’re taking a look at unusual options trading activity in iShares Silver Fund (SLV) and Talisman Energy (TLM). 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 [...]

XLY, BP Options – Unusual Trading Activity – April 19, 2013

XLY, BP Options – Unusual Trading Activity – April 19, 2013

This week we’re taking a look at unusual options trading activity in the SPDR Consumer Discretionary Fund (XLY) and British Petroleum (BP). 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 [...]

Stock Options To The Rescue!

Stock Options To The Rescue!  Skyworks Solutions (SWKS)

Stock Options To The Rescue! Skyworks Solutions (SWKS)

Today we’re going to look at Skyworks Solutions (SWKS) and how you can use options to reduce your risk, lock in profits, and give you upside potential.  Here’s what happened… SWKS reported quarterly earnings last week.  Revenue and earnings growth were in line with expectations.  But their better than expected 2nd quarter outlook sent the [...]

Stock Options To The Rescue!  Ford Motor (F)

Stock Options To The Rescue! Ford Motor (F)

Today we’re going to look at Ford Motor (F) and how you can use options to reduce your risk, lock in profits, and give you upside potential.  Here’s what happened… F reported 3rd quarter earnings while the markets were closed on Tuesday.  Strong sales in North America drove profits well beyond Wall Street estimates.  And [...]

Stock Options To The Rescue!  Colgate-Palmolive (CL)

Stock Options To The Rescue! Colgate-Palmolive (CL)

Today we’re going to look at Colgate-Palmolive (CL) and how you can use options to generate some additional income, reduce your cost basis, and profit from the recent decline in the stock. Here’s what happened… Colgate-Palmolive shares fell 3% from $106.56 to a low of $103.05 after reporting 3rd quarter earnings earlier this week.  They met Wall Street earnings [...]

Stock Options To The Rescue!  Microsoft (MSFT)

Stock Options To The Rescue! Microsoft (MSFT)

Today we’re going to look at Microsoft (MSFT) and how you can use options to reduce your risk and give you upside potential.  Here’s what happened… MSFT shares are down 3% from $29.50 to $28.55 after reporting weak quarterly revenue and earnings that fell short of analysts’ estimates.  Here’s the deal… MSFT was expected to [...]

Stock Options To The Rescue!  Safeway (SWY)

Stock Options To The Rescue! Safeway (SWY)

Today we’re going to look at Safeway (SWY) and how you can use options to reduce your cost basis and profit from the recent decline in the stock. Here’s what happened… SWY shares are down 5% from $16.29 to $15.50 after reporting 3rd quarter earnings earlier this week.  The company fell short on revenue expectations but was [...]

Sectors To Watch

Sectors To Watch:  Capex To Fuel Super Bull Market

Sectors To Watch: Capex To Fuel Super Bull Market

What’s the one thing the recovery from the Great Recession is lacking? If you said job growth, you’re on the right track… the unemployment rate and other employment stats are some of the most widely talked about and are certainly disappointing.  But I’m talking about capex or capital expenditures. It’s the amount of money a [...]

Sectors To Watch:  Power Up Your Cash Flow With Utilities

Sectors To Watch: Power Up Your Cash Flow With Utilities

Investing in electric utilities, multi-utilities, independent power producers, energy traders, and gas utilities isn’t as flashy as investing in a hot biotech stock or tech stock IPO.  But utilities stocks are a staple for investors interested in income generation more so than growth. And for good reason… High quality dividend paying stocks like those found [...]

Sectors To Watch:  What’s In Store For Tech Stocks?

Sectors To Watch: What’s In Store For Tech Stocks?

After a strong start to 2012, technology stocks finished the year with a whimper.  In the first quarter of 2012, the Technology Select Sector SPDR (XLK) ETF logged an impressive 18% gain.  After a weak second quarter, XLK went onto set new highs in September.  It reached a peak gain for the year of 24%.  [...]

Sectors To Watch: Should You Invest In Healthcare?

Sectors To Watch: Should You Invest In Healthcare?

Healthcare in the US is undergoing major changes. One thing’s for sure, since health care reform was signed into law in 2010, the industry has dealt with a lot of uncertainty.  After surviving a challenge in the Supreme Court and President Obama’s reelection, it’s safe to say the reforms are here to stay. At this [...]

Sectors To Watch: Homebuilders Are Ready To Run

Sectors To Watch: Homebuilders Are Ready To Run

The US housing market is heating up.  It’s a welcome sign for the US economy that’s struggled to grow without a contribution from the housing sector.  But it’s even better news for homeowners and banks who have bared the brunt of the worst real estate bust since the Great Depression. Not surprisingly, the revival was [...]

The Spread Trader

The Spread Trader:  Straddle On SPDR Gold Shares (GLD)

The Spread Trader: Straddle On SPDR Gold Shares (GLD)

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 [...]

The Spread Trader:  Bull Call Spread On TIBCO Software (TIBX)

The Spread Trader: Bull Call Spread On TIBCO Software (TIBX)

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 [...]

The Spread Trader: Bear Put Spread On 3D Systems (DDD)

The Spread Trader: Bear Put Spread On 3D Systems (DDD)

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 [...]

The Spread Trader:  Bull Call Spread On Apple (AAPL)

The Spread Trader: Bull Call Spread On Apple (AAPL)

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.  [...]

The Spread Trader:  Bull Call Spread On Caterpillar (CAT)

The Spread Trader: Bull Call Spread On Caterpillar (CAT)

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 [...]

Options Trading Strategies

Reverse Iron Butterfly Spread

Reverse Iron Butterfly Spread

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 [...]

Short Condor Spread

Short Condor 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 [...]

Short Straddle

Short Straddle

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 [...]

Long Straddle

Long Straddle

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 [...]

Iron Butterfly Spread

Iron Butterfly Spread

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 [...]