The Spread Trader
Credit Spreads: A Useful Strategy in Volatile Markets
Last week, I started a mini-series on the various aspects of options trading. In the first few articles, I addressed “Calculating Returns” and “Setting up the Proper Risk/Reward.” Today’s focus will be on analyzing profit and probability. In this installment, I’ll cover the use of credit spreads — a useful volatile market strategy — which […]
Roblox Is A Buying Opportunity As The Earnings Gap Fills
Here’s how to bottom fish the RBLX stock beatdown and come out with profits in the end Attention, Roblox (NYSE:RBLX) lovers: A lucrative buying opportunity is in the offing. It will be one of the best chances for new bulls to enter the videogame maker since the company went public last year. Today’s arguments will appeal to […]
Railroads Are Still A Good Investment. Here’s Why And Where To Put Your Money
Let me tell you about an exciting new transportation technology. It’s ground-breaking. It’s game-changing. The entire face of shipping could be altered. It’s… er… railroads. Okay, so maybe not so exciting. Or new. In fact, since the first major railroads were built around 200 years ago in the US, not much has changed. Trains are […]
A Simple Way To Play Financials If Rates Rise
Among the investment community, it’s easy to find commentary on popular tech and retail stocks. Given what’s been happening in Washington, there’s also plenty of discussion on healthcare companies. But one sector that’s been getting very little attention lately is financials, particularly banks. While the banking industry has been relatively calm the last couple years, […]
3 Of The Best Trades On Wall Street Right Now
These three beauties boast solid price patterns The silver lining of any and all market selloffs is their ability to return the Street’s favorite stocks to support levels. These floors provide multiple benefits. For starters, trade setups forming around support provide a clear price level to trade against. If the stock stays above-said level, then […]
Go Bullish On Gold Using Options
Uncertainty is creeping back into the markets which means that the safe-haven commodity is coming back to life. By using the options trade shared in this article, you can profit big from just a small move north in the price of gold. Ever since central banks started accumulating gold (after the Financial Crisis of 2008-2009), […]
Take A Position In Starbucks Stock Today: Here’s Why
After having a not-so-great earnings season, the world’s largest coffee chain’s stock took a dive, but that shouldn’t scare you away from placing a trade on this winning stock. Check out how we would place a profitable trade using options. Although we’ve just completed what has been a strong earnings season overall, one very popular […]
Use This Options Trade To Profit From The Hot Snap IPO
After rocketing up 44% on its first day of trading and another 10% on Friday, this hot social media app loved by Millenials is now worth over $30 billion. By every metric that’s stretched, so that’s why we’re recommending this options strategy to short this high-flying stock. The first big IPO of 2017, and the […]
Profit From The Thrashing In The Gold Stocks (GDXJ)
Gold stocks were slammed on Monday — profit if GDX remains under pressure Tremors were felt in gold mining stocks Monday. What began as a run-of-the-mill bout of profit taking soon morphed into a torrential downpour of sell orders. By day’s end, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) had fallen 5.3%. And if you […]
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)
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)
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)
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)
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)
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. […]
The Spread Trader: Bull Call Spread On Conoco Phillips (COP)
As you know, we’re well into the dog days of summer. It’s the time of year when people from all walks of life head for the beaches and take their last minute summer vacations. And Wall Streeters are no exception. Right now, many traders, institutional investors, and hedgies are away from their usual Wall […]
The Spread Trader: Bear Put Spread On United Parcel Service (UPS)
Last week we got more bad news on the state of the US economy. Five of the nine economic indicators came in weaker than expected. For instance, initial jobless claims and continuing claims both came in higher than expected… while housing starts and existing home sales fell short of expectations. But the one that was […]
The Spread Trader: Bear Put Spread On Chipotle Mexican Grill (CMG)
You’ve probably noticed investor sentiment has taken a bearish turn of late. The bullish momentum that carried the Dow 25% higher from around 10,500 in October to over 13,000 earlier this year is gone. It’s been washed away by the problems in Europe and weaker than expected economic data in the US and China. Obviously, […]
The Spread Trader: Bear Put Spread On Morgan Stanley (MS)
Here we go again… Investors are once again hitting the sell button in May. It looks like the old Wall Street maxim, ‘Sell in May and go away’ is proving to be true once again. Just last week, the S&P 500 had a bullish breakout from its April trading range. And the large cap index […]
