Category: Options Trading
VIX Options And Taxes
Like many investors, the nine year bull market has left my fund with a large amount of unrealized capital gains. With prices now very rich, at least in my view, I feel the risk/return trade-off is much less favorable then when those investment were made. I fear there is a reasonable probability of a large […]
Don’t Fall Prey To Overpriced Options
I am old enough that I was trading in the markets before decimalization. If an option was trading for a quarter, we called it a “quack.” If it was trading for a sixteenth, we called it a “teeny” or a “stink.” Beware the teeny puts. If you were a market maker on the floor, you […]
3 Trades To Play The Eye Of The Storm In Energy Stocks
Energy stocks are splendid choices for options plays right now Let us praise the markets for creating puts and calls. The three-year period of volatility in oil delivery prices has created all kinds of havoc in the energy sector and in the global economy. The volatility and large moves in oil prices have created a […]
5 “Facts” Smart People Get Wrong About Options
Using options contracts to boost returns and income could be the most powerful investing tool that you’re not using. While trading options for the first time might be intimidating, we’ve broken it down to its core pieces and show that options aren’t as dangerous as you might think. 1) Options Trading is complicated Markets can […]
Buy This Stock At A 10% Discount Or Get Paid Not To
Using an easy to understand options strategy, you can purchase this undervalued and attractive stock at a 10% discount to its current price or get paid real cash income not to. Professional money managers use this strategy to build positions in stocks at a discount while also earning a regular income stream. Rates are ridiculously […]
3 Pitfalls Of Options Trading
Let’s discuss the downsides to options no one ever mentions. The reason no one talks about these pitfalls is that it’s against the system’s best interest. The system wants retail traders churning their accounts at brokerages with tons of options trades. The more trades the better. Brokers earn fat commission fees and their affiliates that […]
The Value Of “Growth Options”
Financial economists divide the value of a company’s equity into two components: the value of “assets in place” and the value of “growth options.” Although unfamiliar to many investors, the division is a highly useful tool. To see why, both components must be defined clearly. The first component, assets in place, has two parts. The […]
Consider Options
Options are typically seen as complex and risky. They may be complex, but they need not be risky. In fact, options are a great tool for making the risk/return menu more complete. In that regard, I think they deserve a close look now. The reason is that given the immense run-up in the market since […]
Options Trading Is Much Better Than Stock Trading
Options Trading Is Much Better Than Stock Trading This is an options trading site, so of course we spend a lot of time talking about the benefits of options. I regularly point out the virtues of using options instead of stocks. That should come as no surprise to most people who trade options regularly. Yet, […]
Using Options To Trade Economic Activity
Options traders can use S&P 500 options or interest rate ETFs like TLT to trade economic activity.
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 […]
One More Reason To Trade Options Instead Of Stocks
By now most options traders are aware of the numerous benefits to using options. As options trading grows in popularity, more and more people are trading options rather than stocks. I personally believe there are very few reasons left to trade stocks. The clear advantages to using options include the ten to one leverage (compared […]
Three Ways To Make Buying Options More Affordable
There’s absolutely no denying how powerful options can be. Options have nearly unlimited uses. And, savvy traders can learn to reap huge rewards from trading options on a regular basis. Of course, like anything else in the world of investments, options aren’t perfect. One of the few negatives to trading options is some calls and […]
Two Options Products That Could Be Right For You
One of the amazing benefits of options is the variety of ways they can be used. All different types of strategies and goals can be achieved by mixing and matching options contracts. What’s more, exchanges continue to release more and more types of options products. New products come in all shapes and sizes and are […]
What To Do If This Bigger Picture Remains Unchanged?
We normally see a positive market bias ahead of pre-holiday trading. But that was not the case Friday as worries about Europe and continued disgust over Facebook (FB) and JPMorgan (JPM) dominated the headlines. In addition, overall share volume was the lightest of the year as we slowly slid lower after a brief attempt to […]
Options Trading: Buying Puts On TJX
The TJX Companies (TJX) has had a great run… The low-end retailer’s stock has shot up nearly 80% since the beginning of 2011. But that’s just the tip of the iceberg… TJX has gone parabolic since a 2 for 1 stock split on February 3, 2012. It’s up more than 15% in the eight weeks […]
A Simple Option Strategy To Hold Onto Stock Gains!
The S&P is now sitting at its highest level since May of 2008, with another 1.4% gain yesterday. It’s days like this that make you wonder why you’d ever bother selling anything. I mean, this is unbelievable! Even amidst poor housing data which indicated contracts for existing homes fell more than expected, the S&P still […]
Covered Calls: How To Generate Profits In A Flat Market
Stocks are having an epic first quarter of 2012. The S&P 500 has surged 145 points so far this year. That amounts to an eye-popping 11.5% gain for the large cap index. No doubt about it, investors are happy to see stocks on the upswing. But here’s the thing… At the beginning of the year, […]
A Simple Options Play On Rising Oil
Got extra gas money? I hope so… with oil prices rising, you’re going to need it! Oil prices are moving up and it appears there’s no relief in sight. Since the beginning of the year, gas prices have risen by nearly $0.57 a gallon. And just about everyone is cringing about how much it’s costing to […]
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