Tag: options market
Will Stocks Continue To Rally Despite The Coronavirus Scare?
The stock market can be a crazy place. The unpredictability of the financial markets is what makes them so exciting and challenging for traders (and investors). While the long-term direction of stocks has always been up, there are definitely significant periods of volatility over shorter time frames. For instance, this year we’ve already had a […]
2 Distinct Concepts That Options Traders Need To Know
Market volatility is starting to tick back up as macro headlines from Iran/Iraq come in. And now we are about to enter earnings season, which not only will cause big moves in the individual names, but over the past few years, has proved to be a volatile first quarter. More specifically, on individual names that are […]
What’s In Store For Chipmakers In 2020?
2019 is at an end, and it was undoubtedly a great year for stocks. The S&P 500 was up over 28% for the year. However, semiconductor companies had an even better year. VanEck Vectors Semiconductor ETF (SMH) was up nearly 62% over the same period. Granted, SMH did plunge sharply at the end of 2018, so it had […]
Where Are Interest Rates Headed In 2020?
One of the big questions for the financial markets as we head into the next decade is where are interest rates going as we kick off a new year. On one hand, the labor market is strong and stock prices are at all-time highs. On the other hand, many other economic indicators are showing a […]
3 Bank Stocks To Buy After Earnings
Consider these options cash flow strategies in JPM, BAC and C stock Earnings season is upon us, and as usual, bank stocks led the way. If you couldn’t tell by this week’s rally in the S&P 500, the market cheered the results. With the recent gains, more upside could be on the way. Today, we’ll look […]
The Relationship Between Volatility & Vega
Market volatility is starting to tick back up as macro headlines ranging from inverted yield curve to drones striking Saudi oil complexes to impeachment to failed IPOs have ratcheted up uncertainty and nervousness. And now we are about to enter earnings season which not only will cause big moves in the individual names but could […]
Are Bonds Going To Continue To Be The Hottest Asset Class?
The stock market has been plenty volatile over the last couple weeks, but the real story has been what’s going on in the bond market. Many of the financial headlines you see are about the inverted yield curve or the parabolic move in US bonds. Let’s start with the inverted yield curve. What does that […]
What Does The Options Market Say About Interest Rates?
Why are investors so fixated on interest rates? If you follow the financial markets regularly, you’ll notice how laser-focused the investment community is on what the Federal Reserve is doing, how bond markets react, and what it all means for interest rates. But why are interest rates so important? What does a change of a […]
Generating Income And Protecting Yourself During A Market Selloff
Investors have finally cracked under the pressure of the trade war with China. Stocks, which were at all-time highs just two weeks ago, are now 6% off those highs as of this writing. Although the S&P 500 is still up 13% year-to-date, Monday’s 3% drop set the alert level to red. Meanwhile, safe-haven investments like […]
Buying A Covered Call On Chipmaker Up 75% YTD
There are primarily two companies known for producing the majority of computer graphics cards (GPUs). Most investors are familiar with NVIDIA (NVDA), which tends to be a high-flying, headline grabbing stock. However, Advanced Micro Devices (AMD) is also a huge player in the industry – but can often fly under the investment community’s radar. Lately however, it’s AMD […]
What Percentage Of Options Expire Worthless?
One of the persistent and pernicious myths regarding options trading is that 80% of all of them expire worthless. The number relies on the fact that most options get closed well before expiration and can create a misleading belief that selling premium is the only sure way to make money trading options. We’ve all seen the marketing […]
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 […]
A Deceptively Easy Way To Make 133% Profits From Higher Interest Rates
Despite all the headlines about the upcoming trade summit with China, it’s interest rate expectations that are more likely driving the financial markets. Yes, a trade war with China is bad for both countries (and the global economy) and a resolution would certainly be good news for stocks. However, from a global perspective, interest rate […]
Make Money On A Big Move In Oil – In Either Direction
With all the coverage of how the stock market is reacting to mid-term elections and the most recent Fed statement on interest rates, it’s easy to forget about oil. The fact is, crude oil prices have moved quite a bit over the last couple months without garnering a lot of attention from investors. The United States […]
A Quick Way To Hedge Your Portfolio Into The New Year
Despite the volatility and heavy stock selling in October, many analysts are expecting the remainder of 2018 to be bullish. The S&P 500 was only up 3% year-to-date after the October bloodbath (prior to mid-term elections), so it stands to reason that stocks are more likely to go up in the final two months of […]
Options: How To Buy Them Before They Expire Worthless
One of the persistent and pernicious myths regarding options is that 80% of all them are worthless. The number belies the fact that most options get closed well before expiration and can create some misleading beliefs that selling premium is the only sure way to make money trading options. We’ve all seen the marketing emails […]
Don’t Be Scared Out Of Netflix — It Will Steal The Show Again
The NFLX naysayers are wrong — this stock is still healthy and has better days ahead In spite of all the headline risks that looms over the stock market this year, the indices made new highs … but there have been a few exceptions, and Netflix (NASDAQ:NFLX) is one of them. This is a momentum stock, which […]
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 […]
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, […]
A Super Cheap Way To Use Options To Protect Against A Black Swan Event
Most of the time when I highlight an interesting trade I’ve seen in the market, it’s something I’m looking at in terms of profit-making potential. That may seem obvious, but don’t forget, options make wonderful risk management tools as well. In fact, they’re probably the most efficient tools for portfolio risk protection out there. There […]
The Latest Gaming Craze Could Lead To A Quick 468% Return
The video gaming industry is extremely competitive, but can also be immensely profitable if a developer hits big on a certain game or franchise. Success stories in video games range from relatively simple mobile apps to massive projects with huge development costs. Much like a movie, production costs for video games are mostly upfront. A […]
Book 125% Returns On A Big Move In Facebook (FB)
Perhaps no company has gotten more press lately than Facebook (NASDAQ: FB). The social media giant has mostly been in the limelight for negative reasons… namely the Cambridge Analytica scandal and data privacy concerns. Investors were quick to jump ship when concerns over FB’s policies became headline news. The stock dropped from $180 to $150 in about […]
Protecting Against Downside Risk As Retail Stock Report Earnings
The increase in market volatility the past couple weeks is helping to reawaken interest in hedging with options. More specifically, I’m seeing a lot more downside protection trades in the options market than before the correction at the beginning of February. Investors have quickly remembered that stocks can move really fast when things get hairy. […]
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 […]
Follow This Massive Downside Trade With A Potential 1,100% Return
One of the most interesting aspects of options trading is that you never quite know what traders are thinking when they make trades. It’s difficult to be 100% sure of their goals when they initiate a certain position. Part of the mystery is due to how flexible an investment options can be. Perhaps more importantly, […]
Options Pricing Predicts Wilder Swings For 2018 – But For Which Asset Classes?
2017 was a year in which markets experienced depressed levels of realised volatility. From an option trader’s point of view 2017 was a selling paradise – a lucrative opportunity to collect favourably priced premiums as volatility drifted steadily lower with time. 2017 saw a gradual climb in major stock markets and related ETFs – a key example is the […]
4 Options Trading Strategies For FANG Stocks
After a period of relative weakness, the FANGs are showing their teeth again No doubt, investors are aware the FANG market barometer has been rather toothless of late. But based on our chart work and using options spreads to improve one’s chances of success, there’s reason to be bullish on Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc(NASDAQ:GOOGL). […]
3 Naked Puts For Quick Back-To-School Cash
Use the options market to generate $1,000 in cash for school supplies With school starting back up, some investors may want some extra cash in their pockets. Who are we kidding? Every investor wants extra cash in their pockets. Naked puts are one way to use options to put a little extra bank in the […]
This Is The Biggest Options Trade Ever Made
Risking $10 million on a trade that has a 9-day time limit might seem ludacris, but that’s exactly what this trader did. The best part is, you don’t need to have millions of dollars to profit from the same type of trade. Jay Soloff explains how. It’s easy to see the benefits of trading options […]
3 Bank Stocks That Can Bank You Free Profits
Go long with confidence in these three big-money financial plays Donald Trump winning the 2016 U.S. election lit a fire under bank stocks, the likes of which we have rarely seen. The thesis was doubly effective — half from the prospects of higher interest rates, and the other half from President Trump’s promise to greatly […]
The Best Way To Trade Microsoft Earnings
The cash-cow tech giant reports earnings this week, and a big move could be right around the corner. Here’s how to make a huge return on Microsoft no matter which way the stock moves after earnings. It may not seem like it, but we’re back in midst of earnings season and about to hit the […]
The High-Probability Earnings Trade You Need To Make
Watching how earnings reports can affect the share prices of stocks, sometimes sending them sharply higher and lower, doesn’t always have to be a nerve-wrenching event. With a simple options trade, that you can easily place in five minutes, you can profit from a big move down or up in the stocks you follow. We’re […]
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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