Tag: implied volatility

The One Rule You Must Follow When Trading Options

| July 22, 2019 | 0 Comments
The One Rule You Must Follow When Trading Options

When people talk about options trading, the conversation often turns to ultra-risky strategies like buying a call or put options — ahead of an earnings number in the hope of being on the right side. The upside in getting lucky on such an unpredictable event is a big, fat profit. The downside when you’re wrong? […]

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3 Stocks To Buy As Fear Runs Amok

3 Stocks To Buy As Fear Runs Amok

Support is holding so far in DIS, FB and AMZN stock Fear has officially returned. So says the CBOE S&P 500 Volatility Index or VIX, which is spiking to its highest level since Jan. 4. Today we’ll provide context to the panic and identify three stocks to buy. At this morning’s peak of 23.38, the […]

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2 Essential Options Trading Concepts That You Need To Know

| April 15, 2019 | 0 Comments
2 Essential Options Trading Concepts That You Need To Know

Market volatility has contracted back down to historically low levels with the VIX, which acts as the benchmark measure, sitting just above 52-week low at the pre-teen level of 12. But, with earnings season upon us, tons of IPOs such as Uber hitting market, and pickup in mergers and acquisition activity such as Chevron’s (CVX) $33 billion […]

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The Inner Workings Of Time Decay In Options Trading

| March 8, 2019 | 0 Comments
The Inner Workings Of Time Decay In Options Trading

After a steep decline and rapid rebound, the stock market seems to be settling in.  Following such a period of big moves and high volatility, I wouldn’t be surprised if it went nowhere for the next couple weeks, or until the next earnings period. But, as an options trader, one thing’s for certain: Time never stands […]

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1 Predictable Pricing Behavior That Savvy Options Traders Use

| January 11, 2019 | 0 Comments
1 Predictable Pricing Behavior That Savvy Options Traders Use

Earnings season officially kicks off next week with some of the big banks such as  JP Morgan (JPM)  and Bank America (BAC)  set to report on Tuesday and the first of FAANG, Netflix (NFLX) reports on Thursday. Earnings can be very tricky to trade as there are many moving and unknown parts; will the company miss or beat expectations, what will be the […]

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Options: Short-Term Money-Making Opportunities

| October 17, 2018 | 0 Comments
Options: Short-Term Money-Making Opportunities

All the political and policy noise is about to brushed aside by what really matters for stock prices- earnings. And this is shaping up to be one of the most interesting, and possibly treacherous, earnings seasons in many years.  Here is what you need to know. Earnings season kicked off on Friday with big banks […]

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Options Trading: 4 Ways To Protect Your Portfolio

| July 13, 2018 | 0 Comments
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 […]

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Options Trading: Get PEPE With This Tech Trade

| April 25, 2018 | 0 Comments
Options Trading: Get PEPE With This Tech Trade

The selling of decent reports continues to be a theme, and the whole market looks on shaky ground. Today’s options trading will try and sidestep these larger issues. I’m going to establish a Pre-Earnings Premium Expansion, or PEPE, trade in Skyworks Solutions (SWKS).    Skyworks develops semiconductor products that go into a wide variety of products from cell […]

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Options Trading: How To Handle Earnings Reports

| April 13, 2018 | 0 Comments
Options Trading: How To Handle Earnings Reports

Earnings season officially kicks off with some of the big banks such as  JP Morgan (JPM)  and Citi set to report this coming Friday morning. This is an important, yet difficult time for options trading. Earnings can be very tricky to trade as there are many moving and unknown parts; will the company miss or […]

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Ditch Options And Buy Stocks With “Cheap Optionality” Instead Lessons From David Tepper

| November 25, 2016 | 0 Comments
Ditch Options And Buy Stocks With “Cheap Optionality” Instead Lessons From David Tepper

It probably didn’t take long after becoming a trader to stumble upon options. Brokerages and websites all over the internet are constantly pitching these complex financial derivatives, claiming things like “defined risk” and “100% returns a month”. But these advertisements only end up luring novices into a game that creates losses rather than stunning returns. […]

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Implied Volatility

| March 29, 2012 | 0 Comments
Implied Volatility

Implied volatility is an option-specific term.  Implied volatility is the market’s measure of the future volatility of an underlying asset.  If that sounds complicated, let me break it down for you… There are four major factors affecting an options price.  These factors are volatility, time decay, probability, and interest.  Dividends can also come into play, […]

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