Options Trading Strategy

Options Trading: A Golden Opportunity

Options Trading: A Golden Opportunity

When I first started publishing options trading articles online in 2002, I quickly learned that if you wanted to get feedback, write something negative about gold. People will really bug out. At the time, gold was trading around below $400 an ounce and I thought that was too high.  It of course proceeded to have […]

Continue Reading

How To Make A 186% Return On Video Games

How To Make A 186% Return On Video Games

Typically, when growth in the video game industry is discussed, it’s all about mobile gaming growth. After all, playing games on smartphones and tablets has been where most of the action has been in recent years, at least in terms of investing. While casual gamers may still be driving plenty of business in mobile gaming, […]

Continue Reading

Is The Housing Market About To Hit A Top?

Is The Housing Market About To Hit A Top?

I don’t spend a lot of time writing about real estate in this space. It’s not that it isn’t important, in fact it’s quite the opposite. Of all the sectors most impacted by a change in interest rates, real estate is at the top of the list. However, I just don’t find real estate that […]

Continue Reading

Is Oil Going Higher? Feel Like You Missed The Gains?

Is Oil Going Higher? Feel Like You Missed The Gains?

How do you analyze oil in this market?  It may seem like picking a direction for crude oil shouldn’t be too overwhelming of a task.  However, under current market conditions, there are multiple competing factors in what could drive the price of oil (higher or lower).  Deciding which way you think the price is going […]

Continue Reading

A Quick 185% On An ETF That’s Just Now Bottomed

A Quick 185% On An ETF That’s Just Now Bottomed

If you have any interest in economic policy, especially macroeconomic policy and repercussions, now is about as interesting as it gets. I realize most people don’t get a hoot about macroeconomics, but it can be very useful for analyzing trading opportunities. (For me, it goes beyond that since I have a degree in economics which […]

Continue Reading

Covered Call Writing

2 Ideal Stocks To Generate Covered Call Portfolio Income

2 Ideal Stocks To Generate Covered Call Portfolio Income

We’ve enjoyed a tremendous bull market from 2009 into early 2018, but for the past three months the S&P 500 has been in correction territory. Is this another hiccup in the journey upwards, or is it the start of another multi-year period of flat or negative returns? Some investors prefer to avoid that question and […]

Continue Reading

Create Your Own Dividend Using These 3 Covered Calls

Create Your Own Dividend Using These 3 Covered Calls

Use options to enhance your monthly income Fixed-income or retired investors may dismiss using options because they seem exotic. Yet they don’t have to be, and covered calls can provide you additional income without terribly much additional risk than holding a stock. Many of you retired or income investors already own blue-chip stocks in your […]

Continue Reading

3 Blue-Chip Trades That You Win No Matter What

3 Blue-Chip Trades That You Win No Matter What

Learn how to generate extra income using covered calls Options are mistakenly considered exotic securities by the average investor. Like all investments, they can be very risky, but if used properly, they can provide a steady and reliable additional source of income. There is one basic strategy that may be of interest to the average […]

Continue Reading

Sell These 3 Covered Calls For Thousands In Income

Sell These 3 Covered Calls For Thousands In Income

Learn how to profit from income-generating trades on these big names With the market having stumbled earlier this month, you may be wondering how to hedge your portfolio and/or make some additional monthly income using covered calls — especially if you own some very expensive stocks. Selling covered calls mean selling the right to someone […]

Continue Reading

3 Covered Calls For An Uncertain Market

3 Covered Calls For An Uncertain Market

Use these covered calls to hedge your portfolio in 2018 If you were spooked by the sudden correction in the market this past week, you probably realized that you haven’t thought about risk as much as you should have. That’s one of the many reasons to have a long-term diversified investment strategy, with a focus on non-correlated […]

Continue Reading

Options Trading Strategies

Alibaba Stock Is A Steal Before Earnings

Alibaba Stock Is A Steal Before Earnings

Beaten down by U.S.-China trade war rhetoric, buy BABA stock before it soars on earnings It’s time for another earnings report from Chinese ecommerce behemoth Alibaba (NYSE:BABA). The company steps into the earnings fray next week, and BABA stock finds itself once again trading at multi-month lows. And, once again, this is a bullish opportunity […]

Continue Reading

A DIY Trade In Home Depot Stock For Easy Profits

A DIY Trade In Home Depot Stock For Easy Profits

Sellers of HD stock on this earnings report are wrong. Profit from their mistakes In 2018, we haven’t had too many chances to trade stocks based on their fundamentals. The earnings season, however, is one of the periods where we can actually concentrate on company profits and loss statements. Today, Home Depot (NYSE:HD) delivered a strong earnings […]

Continue Reading

There Is An Open House Sale On Zillow Stock

There Is An Open House Sale On Zillow Stock

Zillow stock bulls have lost their faith Zillow (NASDAQ:Z) stock had been lucky so far this year, up 36% year-to-date as of yesterday’s close. But last night management reported earnings and Wall Street hated what they saw. Investors sold the stock in droves. A one-day 20% dip is rarely a one-off event, so there could be more downside […]

Continue Reading

The Devastation In Facebook Stock Is The Perfect Long-Term Opportunity

The Devastation In Facebook Stock Is The Perfect Long-Term Opportunity

Regardless of management’s warnings, FB stock will shrug off these fears soon enough Last night Facebook (NASDAQ:FB) created its own dramatic headlines after management reported earnings. The message caused FB stock to fall 25%. Facebook lightly missed on Wall Street expectations, but the cautionary note on guidance from management was very bearish. So the selling is justified […]

Continue Reading

Go Long American Express Company On This Earnings Dip

Go Long American Express Company On This Earnings Dip

AXP earnings report was decent so this dip is an opportunity to go long 2018 has been a whipsaw year for equities. We had a market-wide correction that started in early February that was based on fundamentals. Investors panicked over rising rates. But since then, it has been a slew of headlines about global tariff […]

Continue Reading

Options Volatility Watch

A Quick Trade To Profit From This Summer’s Volatility?

A Quick Trade To Profit From This Summer’s Volatility?

Most investors (and all traders) are aware of what market volatility is.  When stocks are moving all over the place, it’s pretty obvious to most anyone who follows the markets that it means volatility is high.  And when nothing is going on and stocks are moving sideways, it’s easy to recognize that as a low […]

Continue Reading

Market Volatility: Traders Are Short VIX – Again

Market Volatility: Traders Are Short VIX – Again

In the wake of February’s market volatility induced sell-off that resulted in the implosion of several volatility-based ETFs, I’ve written plenty on the topic. I’ve covered everything from what exactly happened, and the opportunities it presented to basic flaws in VIX related products, to the current SEC investigation as to whether there was market manipulation at work. In the course […]

Continue Reading

Betting On The Market Not Moving?

Betting On The Market Not Moving?

The last several weeks have been interesting for stocks to say the least. We simply are not used to the volatility – the daily swings – we’ve been getting nearly every trading day. It’s been years since we’ve had anything close to market conditions like this. Moreover, volatility indicators have remained high but stable throughout […]

Continue Reading

Make Money While Waiting For Volatility To Fall

Make Money While Waiting For Volatility To Fall

For the last several weeks, every time it seemed the market was ready to rally, something happened to send it back down. The biggest concerns lately centered on the potential trade war brewing between China and the U.S. It appears that most companies have no desire to get involved with a battle of escalting tariffs. […]

Continue Reading

Recession Prediction: Is Volatility A Problem?

Recession Prediction: Is Volatility A Problem?

Stock market volatility has increased substantially over the past two months. While large declines during the first week of February and over the past few days have garnered most of the attention, it should be noted that the S&P 500 has spent over 30 of past 40 trading days within 3% of all time highs. […]

Continue Reading

Options Trading

Options Trading: 4 Ways To Protect Your Portfolio

Options Trading: 4 Ways To Protect Your Portfolio

Amidst heavy saber rattling over tariffs and a seeming slowdown in global growth, earnings season is about to kick off. We have big banks such as JPM and BAC reporting on Friday and Netflix set to post results on Monday. This will be the real acid test for the bull market. Will companies post sufficient […]

Continue Reading

Recession Prediction: Is Call Buying A Warning?

Recession Prediction: Is Call Buying A Warning?

Going by the reaction in China, you would’ve thought global markets were in for a thrashing after President Donald Trump’s latest belligerence on trade. And while a few cracks widened, in the end it was another muffled reaction in U.S. stocks. Any immediate recession prediction has yet to bear fruit. For the S&P 500 Index, […]

Continue Reading

Options, Hurricanes And Hedging

Options, Hurricanes And Hedging

We always look at our investment process and ask ourselves, “What can we do better?” How can we increase returns and lower risk? We think we have found a new, sensible way to do both. We can hedge a portion of our market exposure with put options. Put options are contracts that trade on an […]

Continue Reading

The Limitations Of Trading Options

The Limitations Of Trading Options

I’ve always been a fan of options trading. In fact, I still use covered calls as a tool in my investing arsenal. That being said, options, when not used correctly, can pose a serious amount of risk to the unknowing investor. While options can be used as an effective tool for hedging and speculation, by nature […]

Continue Reading

Is Binary Options Always A Scam?

Is Binary Options Always A Scam?

Binary Options Industry From the outside, it seems as though the binary options industry is going through a torrid time; platforms closing, Securities & Exchange Commission (SEC) warnings, publicly traded companies being forced to delist and a plethora of consumer complaints has caused havoc for the industry in recent months. Is binary options a legitimate industry being […]

Continue Reading

Options Trading Basics

The Dummies Guide To Option Greeks

The Dummies Guide To Option Greeks

There you are in a conversation with a professional trader about their strategy and suddenly the “inside baseball” terms start rolling off their tongue – Delta Hedging, Short Gamma, Theta Burn, and Vega Risk.  You smile and nod without perhaps knowing exactly what these terms mean, and just like that, what started as a good […]

Continue Reading

Mean Reversion: What Stocks And NFL Teams Have In Common

Mean Reversion: What Stocks And NFL Teams Have In Common

By studying the long-term performance of professional sports teams, investors can gain a sense of a stock’s future returns. Mean reversion controls stock market returns as much as the outcome of sports competitions. It’s easy for sports fans to assume a championship team will continue its stellar performance into the next season. It’s equally easy for investors to extrapolate a […]

Continue Reading

Key Metrics: Price To Sales Ratio

Key Metrics: Price To Sales Ratio

Today I want to take an in-depth look at what James O’Shaughnessy, author of What Works on Wall Street, found to be the best historical value metric… the price to sales ratio. I’ll discuss how to calculate it, what it tells us, and how you can incorporate the metric in your investing approach. What Is Price To […]

Continue Reading

Option Basics – Debit Spreads

Option Basics – Debit Spreads

It’s time for the third installment in our tutorial series on option theory. In the last two installments we we covered option basics and then did our best to give you a head start on how to interpret option greeks. Today we’re going to jump right into debit spreads and explain why they often may be preferable to trading […]

Continue Reading

Option Basics – The Greeks

Option Basics – The Greeks

It’s time for the second installment in our option basics tutorial series. Today we are going to cover the option greeks – which is commonly considered a dry topic. Well that was until now –  so grab a short sword and a bottle of body oil because you’re going to need it down in the dusty arena when […]

Continue Reading