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Call Or Put Options?

Call Options Or Put Options On Yelp (YELP)?

Call Options Or Put Options On Yelp (YELP)?

Yelp (YELP) is having a rough month, although the stock is still up 4% on the year. The popular local review site tends to be a divisive stock for investors. YELP shares are currently trading at $72.83, down 12% over the last month. The stock is trading 28% below the 52-week high of $101.75 and […]

Call Options Or Put Options On Rackspace Hosting (RAX)?

Call Options Or Put Options On Rackspace Hosting (RAX)?

Cloud computing services company Rackspace Hosting (RAX) has been quite volatile this week. The company recently decided not to be acquired by a bigger company after doing its due diligence. RAX shares are currently trading at $33.05, down 16% so far today. The stock is trading 39% below the 52-week high of $54.20 and is […]

Call Options Or Put Options On Apple (AAPL)?

Call Options Or Put Options On Apple (AAPL)?

The world finally got to see Apple’s (AAPL) new line of products at its huge launch event this week. The largest company in the world certainly made a splash with three, shiny new products. AAPL shares are currently trading at $101.00. The stock is trading just 3% below the 52-week high of $103.74 and is […]

Call Options Or Put Options On Tesla Motors (TSLA)?

Call Options Or Put Options On Tesla Motors (TSLA)?

Tesla Motors (TSLA) is once again making headlines. This time, the electric car maker is in the news after coming to an agreement to build its gigafactory battery plant in Nevada. Currently, TSLA shares are sitting at $277.40. The stock’s up 139% from the 52-week low of $116.10 and is just 5% below the 52-week […]

Call Options Or Put Options On Burger King Worldwide (BKW)?

Call Options Or Put Options On Burger King Worldwide (BKW)?

Burger King (BKW) is making headlines with its acquisition of Tim Hortons (THI). The $11 billion deal will create the third largest fast-food company in the world. BKW shares are currently trading at $29.96. The stock is trading 12% below the 52-week high of $33.97 and is 61% above the 52-week low of $18.64. Is […]

Call Options Or Put Options On Best Buy (BBY)?

Call Options Or Put Options On Best Buy (BBY)?

It’s been a long time since Best Buy (BBY) has been a truly relevant stock. However, the electronics retailer is up over 4% this past week and broke out of a tight trading range. BBY shares are currently trading at $31.04. The stock is trading 29% below the 52-week high of $43.93 and is 42% […]

Unusual Options Trading Activity

GDX, LNG Options – Unusual Trading Activity – September 29, 2014

GDX, LNG Options – Unusual Trading Activity – September 29, 2014

This week we’re taking a look at unusual options trading activity in Market Vectors Gold Miners ETF (GDX) and Cheniere Energy (LNG). 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 […]

EPI, XRT Options – Unusual Trading Activity – September 22, 2014

EPI, XRT Options – Unusual Trading Activity – September 22, 2014

This week we’re taking a look at unusual options trading activity in WisdomTree India Earnings ETF (EPI) and SPDR S&P Retail ETF (XRT). 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 […]

RIG, AA Options – Unusual Trading Activity – September 15, 2014

RIG, AA Options – Unusual Trading Activity – September 15, 2014

This week we’re taking a look at unusual options trading activity in Transocean (RIG) and Alcoa (AA). 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 attention […]

JDSU, FEYE Options – Unusual Trading Activity – September 8, 2014

JDSU, FEYE Options – Unusual Trading Activity – September 8, 2014

This week we’re taking a look at unusual options trading activity in JDS Uniphase (JDSU) and FireEye (FEYE). 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 […]

XRT, XLK Options – Unusual Trading Activity – September 3, 2014

XRT, XLK Options – Unusual Trading Activity – September 3, 2014

This week we’re taking a look at unusual options trading activity in SPDR S&P Retail ETF (XRT) and Technology Select Sector SPDR ETF (XLK). 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 […]

EPI, GS Options – Unusual Trading Activity – August 25, 2014

EPI, GS Options – Unusual Trading Activity – August 25, 2014

This week we’re taking a look at unusual options trading activity in WisdomTree India Earnings ETF (EPI) and Goldman Sachs (GS). 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 […]

Speculator's Corner

Speculator’s Corner:  Microsoft’s (MSFT) Big Hardware Gamble

Speculator’s Corner: Microsoft’s (MSFT) Big Hardware Gamble

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 […]

Speculator’s Corner:  How To Trade LinkedIn (LNKD)

Speculator’s Corner: How To Trade LinkedIn (LNKD)

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 […]

You’ll Never Guess Which Asset Has Been The Top Performer Over The Last Year

You’ll Never Guess Which Asset Has Been The Top Performer Over The Last Year

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 […]

Speculator’s Corner:  Is Tesla (TSLA) For Real?

Speculator’s Corner: Is Tesla (TSLA) For Real?

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 […]

Speculator’s Corner:  Is Apple (AAPL) Ready To Rebound?

Speculator’s Corner: Is Apple (AAPL) Ready To Rebound?

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% […]

Speculator’s Corner:  Corn Prices Getting Canned

Speculator’s Corner: Corn Prices Getting Canned

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 […]

Breaking News

Is A Selloff Coming?

Is A Selloff Coming?

After this week’s relatively steep selloff in equities, investors are becoming concerned a larger pullback is in the works. After all, it’s only natural when the selling starts to assume more is on the way. But what are the options markets telling us? Keep in mind, the smart money often likes to use options rather […]

Use Options To Profit From Extreme Risk

Use Options To Profit From Extreme Risk

The US markets have been surprisingly stable for most of the year (so far). There have been very few really volatile periods to speak of. And, the bull market has been quite resilient. Even September – traditionally a volatile month – has been calmer than you’d expect. The markets have remained mostly stable despite numerous […]

Why Is Wall Street Not Talking More About Options Trading?

Why Is Wall Street Not Talking More About Options Trading?

There’s no denying the popularity of options trading these days. Just go to a bookstore (if they still exist in your neighborhood) and see how many books there are on options. Or, do a Google search and check out how many newsletters and services are based on options trading. The fact is, options trading has […]

VXX Stock – Everything You Need To Know (Part 1)

VXX Stock – Everything You Need To Know (Part 1)

With the explosion in popularity of volatility products, both for options traders and investors in general, it’s a good idea to have a solid understanding of what’s out there. As you may realize, the single most important volatility benchmark is the VIX (CBOE’s S&P 500 volatility index). However, the VIX itself isn’t tradable. That’s where […]

Are Interest Rates Going Higher Sooner Than Expected?

Are Interest Rates Going Higher Sooner Than Expected?

After closely watching geopolitical events play out, the focus of many investors has shifted to the Fed and interest rates. Between the most recent Fed Meeting notes being released and the conference in Jackson Hole, there’s been ample opportunity for Fed watchers to (attempt to) glean information about the future of interest rates. However, Yellen’s […]

Is Now A Good Time To Invest In Gold?

Is Now A Good Time To Invest In Gold?

In 2011, the price of gold spiked above $1,800 an ounce, the highest it’s ever been. It was all anyone would talk about. Around that time, gold buyers popped up on every corner, a sure signal of a fad. Three years later, gold is still trading well above historical levels. At $1,300 an ounce, the […]

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 […]

The Spread Trader:  Bull Call Spread On CBS Corp (CBS)

The Spread Trader: Bull Call Spread On CBS Corp (CBS)

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

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 […]

Delta Neutral Trading

Delta Neutral Trading

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 […]