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  • Buying A Call Option On Marvell Technology $MRVL

    Buying A Call Option On Marvell Technology $MRVL

    Buying A Call Option On Marvell Technology $MRVL Big things are happening in the semiconductor industry.  Avago Technologies $AVGO is buying Broadcom $BRCM for $37 billion.  That’s the largest chip industry deal ever.  The combined entity will provide chips for everything from iPhones to server farms. That’s obviously big news for the industry, which has […]

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    | May 29, 2015 | 0 Comments

Call Or Put Options?

Buying A Call Option On Marvell Technology $MRVL

Buying A Call Option On Marvell Technology $MRVL

Buying A Call Option On Marvell Technology $MRVL Big things are happening in the semiconductor industry.  Avago Technologies $AVGO is buying Broadcom $BRCM for $37 billion.  That’s the largest chip industry deal ever.  The combined entity will provide chips for everything from iPhones to server farms. That’s obviously big news for the industry, which has […]

Buying A Call Option on Take-Two Interactive Software $TTWO

Buying A Call Option on Take-Two Interactive Software $TTWO

Buying A Call Option On Take-Two Interactive Software $TTWO                                        Video game companies can make for interesting investment opportunities.  Like a movie production company, the fortunes of a business can often come from one blockbuster hit.  However, it can be often difficult to predict what game is going to be the next blockbuster. Moreover, the gaming […]

Buying A Call Option On Twitter $TWTR

Buying A Call Option On Twitter $TWTR

Buying A Call Option On Twitter $TWTR Social media stocks have always been a lightning rod for investor debates.  Some people love them, others won’t touch them (or flat out short them).  New industries and business models often tend to act as battlegrounds for investors. But social media has been particularly contentious.  Social media companies […]

Buying A Call Option On United States Oil ETF $USO

Buying A Call Option On United States Oil ETF $USO

Buying A Call Option On United States Oil ETF $USO One of the biggest stories over the last year has been the plunge in oil prices.  Massive supplies and lack of demand caused the price of crude oil to drop below $45 per barrel.  It was a price level many thought we’d never see again. […]

Buying A Put Option On Yelp $YELP

Buying A Put Option On Yelp $YELP

Buying A Put Option On Yelp $YELP When a stock has a bad day, my first instinct is to look for a reason to buy it.  It’s normal for investors to overreact to bad news and cause a company’s shares to drop more than necessary.  Often times, you’ll see a stock which has fallen off […]

Buying A Call Option On Facebook $FB

Buying A Call Option On Facebook $FB

Buying A Call Option On Facebook $FB Social media has been something of an enigma to investors.  On one hand, it’s the ultimate growth industry in the age of mobile devices and ever-present Internet connections.  On the other hand, it tends to lack predictable earnings. It’s not unusual for an up and coming industry to […]

Unusual Options Trading Activity

Unusual Options Activity In Apple $AAPL

Unusual Options Activity In Apple $AAPL

Unusual Options Activity In Apple $AAPL 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 is something professional options traders pay a lot of attention to, and for good reason…  Unusual options activity can “tip […]

Unusual Options Activity In Goldman Sachs $GS

Unusual Options Activity In Goldman Sachs $GS

Unusual Options Activity In Goldman Sachs $GS 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 is something professional options traders pay a lot of attention to, and for good reason…  Unusual options activity can […]

Unusual Options Activity In The Blackstone Group $BX

Unusual Options Activity In The Blackstone Group $BX

Unusual Options Activity In The Blackstone Group $BX 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 is something professional options traders pay a lot of attention to, and for good reason…  Unusual options activity […]

Unusual Options Activity In Global X FTSE Greece 20 ETF $GREK

Unusual Options Activity In Global X FTSE Greece 20 ETF $GREK

Unusual Options Activity In Global X FTSE Greece 20 ETF $GREK 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 is something professional options traders pay a lot of attention to, and for good reason…  […]

Unusual Options Activity In Time Warner Cable $TWC

Unusual Options Activity In Time Warner Cable $TWC

Unusual Options Activity In Time Warner Cable $TWC 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 is something professional options traders pay a lot of attention to, and for good reason…  Unusual options activity […]

Unusual Options Activity In Home Depot $HD

Unusual Options Activity In Home Depot $HD

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 is something professional options traders pay a lot of attention to, and for good reason…  Unusual options activity can “tip off” big moves in a stock, […]

Breaking News

What Can We Learn From Options Action In Altera $ALTR?

What Can We Learn From Options Action In Altera $ALTR?

What Can We Learn From Options Action in $ALTR? As regular readers know, I spend a lot of time discussing large and unusual options trades.  Generally speaking, you can gain quite a bit of insight based on what the smart money is doing in options. But what about options activity in general?  Can overall options […]

Big TLT Options Trade Suggests Rates Are Going To Stay Low

Big TLT Options Trade Suggests Rates Are Going To Stay Low

Big TLT Options Trade Suggests Rates Are Going To Stay Low Large and unusual options trades don’t just give us clues on the possible direction of individual equities.  The same theory can be applied on a macro level. For instance, a big options trade in a sector or country ETF may give us valuable information […]

The Best Way To Trade The Energy Sector

The Best Way To Trade The Energy Sector

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 […]

The Price Of Oil Keeps Plunging… Now What?

The Price Of Oil Keeps Plunging… Now What?

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 […]

Trading Options Outside The Box

Trading Options Outside The Box

Part of the challenge in making money trading options (or just in the financial markets in general) is the zero-sum game factor. That is, for every winning trade, there’s someone on the other side losing money. The problem is retail traders have to go up against huge trading firms and banks with endless resources. The […]

How The Heck Do You Trade Oil?

How The Heck Do You Trade Oil?

One of the biggest surprises in the financial markets in 2014 has been the collapse of crude oil prices. In mid-June, West Texas Crude was trading at over $105 a barrel. Barely five months later, the price has dropped below $75. Oil hasn’t been this cheap since 2010. The mind-boggling plunge has caught many investors […]

Volatility Watch

This Large VIX Trade Isn’t What We’re Used To Seeing

This Large VIX Trade Isn’t What We’re Used To Seeing

This Large VIX Trade Isn’t What We’re Used To Seeing VIX options are always worth keeping an eye on.  That’s where the smart money tends to execute important trading strategies and portfolio hedges.  Some of the biggest trades you’ll ever see happen in the VIX options pit. Of course, the VIX (S&P 500 Volatility Index) […]

This Massive VIX Trade Is Betting On Higher Volatility This Summer

This Massive VIX Trade Is Betting On Higher Volatility This Summer

This Massive VIX Trade Is Betting On Higher Volatility This Summer The VIX (S&P 500 Volatility Index) is a measure of implied volatility levels on S&P 500 options.  As you probably know by now if you’re interested in options trading, overall market volatility is most commonly tracked by watching the VIX. VIX is popular because […]

These VIX Trades Signals Higher Volatility Is On The Way

These VIX Trades Signals Higher Volatility Is On The Way

These VIX Trades Signal Higher Volatility Is On The Way As you probably know if you read my articles on a regular basis, overall market volatility is most commonly tracked by watching the VIX.  The VIX (S&P 500 Volatility Index) is a measure of implied volatility levels on S&P 500 options. VIX is popular because […]

This VIX Trade Suggests Higher Volatility Could Be Just Ahead

This VIX Trade Suggests Higher Volatility Could Be Just Ahead

This VIX Trade Suggests Higher Volatility Could Be Just Ahead Trading volatility – or volatility products – has become extremely widespread.  It’s true for options traders of course.  But, even those traders who never touch options may still trade (or at least follow) volatility levels. As you know, overall market volatility is most commonly tracked […]

Another Interesting, Giant VIX Trade Happened

Another Interesting, Giant VIX Trade Happened

Another Interesting, Giant VIX Trade Happened As an options trader, you should always have a general idea of what’s going on with volatility.  You don’t necessarily have to master the concept.  But, the more you know about the topic, the better off you tend to be. As you know, overall market volatility is most commonly […]

This Unusual VIX Trade Is Worth A Second Look

This Unusual VIX Trade Is Worth A Second Look

This Unusual VIX Trade Is Worth A Second Look As I like to regularly point out, as an option trader, you should always be keeping an eye on what the VIX is doing.  Even if you’re not a volatility trader, the VIX should give you an idea of how cheap or expensive options are on […]

Options Trading Strategies

Using The Option Straddle

Using The Option Straddle

Using The Option Straddle Every earnings season I get questions about what option strategy to use. I hear things like, “What’s the best strategy to use to play earnings?” or “How do I use options to make money on earnings?” With options, there are always several right answers. However, for new traders, I usually recommend […]

Should You Be Trading VXX?

Should You Be Trading VXX?

One of the primary themes I like to discuss on this site is volatility. After all, you shouldn’t be trading options if you don’t at least have a basic understanding of why volatility is important to the financial markets.

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 […]

Options Trading Basics

Making Money With Trend Tracking

Making Money With Trend Tracking

One of the reasons that we created the Option Trading Research tracking system was to identify and track companies that have growth potential.  And to show us where a lot of option buying is coming from.  One such area we used to track before we created this system was companies like the makers of obesity […]

Stock Heading To Zero… What To Do

Stock Heading To Zero… What To Do

Sometimes a stock has been beaten down so much that it seems destined to hit zero. However, even if we are eventually right about the direction, it can be very difficult, if not outright dangerous, to attempt to profit from this type of situation before the company goes bust. Why, what’s the risk? One of […]

A Professional Way To Measure A Stock

A Professional Way To Measure A Stock

Lately I hear a lot of people talking about value investing, but see very few actually practicing it. Here’s the kicker… Once your asset base reaches a certain level, I believe that it’s almost impossible to manage this style effectively. Therefore, I’ve been working diligently to further automate my research process. It seems that yellow […]

No More Vacation For Traders

No More Vacation For Traders

Every man who possibly can should force himself to a holiday of a full month in a year, whether he feels like taking it or not. –William James It seems that the vacation season is having little impact on the market this summer.   I can say this with confidence because the S&P 500 continues to […]

Don’t Think About It Too Much

Don’t Think About It Too Much

“The Gods Must Be Crazy” is a great 1980’s film that contrasts the frenzy of modern existence with the calm of African tribal life.  In one of its very first scenes, a woman turns to the main character and asks, “Does the noise in my head bother you?” The point, of course, is that some […]

Putting Bonds On Warning?

Putting Bonds On Warning?

There’s no question that the market continues a tight tug of war between risk aversion and risk appetite. On one hand, the bulls stress the value of equities and oppose the extreme levels of negativity toward them.  By almost every measure, they’re cheap relative to the alternatives. On the other hand, we’ve all heard the […]