Tag: traders

Butterfly Spreads: A Smart Options Strategy for a Volatile Market

| August 12, 2019 | 1 Comment
Butterfly Spreads: A Smart Options Strategy for a Volatile Market

“Do not touch nothing. The truth will be revealed by the facts as they exist.” -Hercule Poirot’s in the Murder on the Orient Express One of the biggest challenges of using options, as an investment tool, is that you must be right on direction and price target, and also accurate in your timing.  And, with all […]

Continue Reading

Using Options To ‘Own’ Stocks For No Cost

| August 5, 2019 | 0 Comments
Using Options To ‘Own’ Stocks For No Cost

With the Federal Reserve ready to embark on a new round of free money, here’s an options strategy that also has a ‘free’ or no money down way to be long stocks. Of the many options strategies that provide leverage, one of the most interesting is synthetic long stock.  This combines a long call and short put opened at the […]

Continue Reading

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? […]

Continue Reading

Profit From The U.S.-China Trade Truce With This JD.com Trade

Profit From The U.S.-China Trade Truce With This JD.com Trade

JD may push toward its 2018 highs This morning, I am recommending a bullish trade on JD.com, Inc. (NASDAQ:JD). Earlier this week, I recommended a bearish play on Micron Technology, Inc. (NASDAQ:MU). The market was up from the positive trade news, and I thought a downside trade on a semiconductor stock would be good protection in the event of […]

Continue Reading

Options Trading: Profit And Probability Discussion [Part 2]

| June 21, 2019 | 0 Comments
Options Trading: Profit And Probability Discussion [Part 2]

In the [first part of this series], we discussed how returns need to calculate returns on a risk-adjusted basis in both percentage and dollar terms. This applies to within the context of each position but, the overall portfolio. Now, let’s take a look at how setting up the proper risk/reward profile for each individual position […]

Continue Reading

What’s In Store For Market Volatility? And How Do We Trade It?

| June 10, 2019 | 0 Comments
What’s In Store For Market Volatility? And How Do We Trade It?

Kids may be getting out of school, but it doesn’t seem like most traders are ready to go on vacation. In fact, it appears that many market watchers are glued to their screen. There’s undoubtedly been a lot more volatility over the past couple weeks than what we’ve gotten used to as the summer approaches. […]

Continue Reading

3 Smart Trades For A Troubled Market

3 Smart Trades For A Troubled Market

Try these options trades for high-odds profits in DIS, AMD and RUT Another trade war headline delivered another nasty market open. With volatility on the rise and overnight swoons in stock futures now the norm, the environment has turned treacherous for directional traders. If you’re seeking the best trades to weather the turmoil, I suggest […]

Continue Reading

Here’s A Quick Win You Can Make From Trump’s Tariffs

| May 20, 2019 | 0 Comments
Here’s A Quick Win You Can Make From Trump’s Tariffs

I’m at the MoneyShow in Las Vegas this week and it’s obvious that interest in options trading is growing by leaps and bounds. Every year, the crowd keeps getting larger. Plus, I notice more sessions and classes about options each time I come. It always makes me happy to see the growing interest in options […]

Continue Reading

What Percentage Of Options Expire Worthless?

| May 17, 2019 | 0 Comments
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 […]

Continue Reading

Selling Versus Buying Options: A Risk/Reward Comparison

| May 13, 2019 | 0 Comments
Selling Versus Buying Options: A Risk/Reward Comparison

Next week I’ll be speaking at the MoneyShow in Las Vegas. It’s one of my favorite experiences every year. Not only is it a great opportunity to meet and talk to other options traders, but I also get a lot of really good questions at the event. I decided that this year I’ll be more […]

Continue Reading

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 […]

Continue Reading

Day Trading For Beginners: Strategies For Starting Out

| April 22, 2019 | 0 Comments
Day Trading For Beginners: Strategies For Starting Out

Day trading is defined as the act of buying the same security multiple times over the course of a single day. Taking advantage of these small price moves can be very lucrative, provided you know what you are doing, otherwise you could be in for a quick demise. Newbies who are unfamiliar with day trading are 90% […]

Continue Reading

Want To Make A Big Bullish Bet On Facebook Ahead Of Earnings?

| April 8, 2019 | 0 Comments
Want To Make A Big Bullish Bet On Facebook Ahead Of Earnings?

It’s undoubtedly been a good year for stocks, with the S&P 500 up almost 15% year-to-date. But, it’s been an even better year for the oft-embattled tech giant, Facebook (FB). Shares in the omnipresent social media company are up 33% so far this year. FB has taken quite a beating over the last year on user […]

Continue Reading

3 Top Tech Stocks To Trade Right Now

3 Top Tech Stocks To Trade Right Now

The dip in tech is a buy — here’s why Large-cap tech stocks have led the great market rebound of 2019. Today we’ll look at three of the top stocks to trade in the sector. Chart watchers are detectives seeking clues. These signals reveal the path of least resistance for prices and enable traders to […]

Continue Reading

Earn 272% If Volatility Spikes By The End Of March

| March 11, 2019 | 0 Comments
Earn 272% If Volatility Spikes By The End Of March

As volatile as 2018 was in stocks, 2019 so far has been anything but. After the first two months of the year, market volatility has been nearly non-existent. It’s much closer to the ultra-low volatility environment of 2017, where the VIX barely cracked 15 the entire year. Of course, we’re starting off from a higher […]

Continue Reading

An Easy Way To Go Long Volatility Using The New SPIKES Index

| March 4, 2019 | 0 Comments
An Easy Way To Go Long Volatility Using The New SPIKES Index

It’s always fascinating to watch how the market reacts to changes in volatility. It seems like the crowd is always waiting for the other shoe to drop. It’s as if market volatility can’t ever trade at an equilibrium – it’s either too high or too low. When volatility is high, you get a fair amount […]

Continue Reading

3 Ways To Trade The Bull Market For Gold Stocks

3 Ways To Trade The Bull Market For Gold Stocks

Here’s one directional bet and two cash flow plays to take to the bank A new bull was born in gold prices late last year. And since then fundamental and technical forces have combined to drive the yellow metal higher. Spectators looking to get in on the action in gold stocks will be happy to […]

Continue Reading

5 Tips To Become A Better Stock Trader

| February 15, 2019 | 0 Comments
5 Tips To Become A Better Stock Trader

Trading is hard, but these 5 tips should help make it easier Are you looking to become a better stock trader? Whether you’re swing trading or day trading, learning how to trade stocks isn’t really that difficult on the surface. Develop a system, follow your rules and makes tweaks to improve it along the way. […]

Continue Reading

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 […]

Continue Reading

Useful Guidelines For Credit Spread & Iron Condor Trading

| December 14, 2018 | 0 Comments
Useful Guidelines For Credit Spread & Iron Condor Trading

The stock market continues to fluctuate wildly, on Monday the Dow Jones went from being down 500 points to close positive. Today, it quickly erased a 350-point gain. But within these huge intraday swings, the market seems to be carving out a defined range. This creates a good opportunity for selling credit spreads in general and iron condors […]

Continue Reading

Earn Income While Hedging Against Market Uncertainty

| December 10, 2018 | 0 Comments
Earn Income While Hedging Against Market Uncertainty

Covered calls are quite possibly the best investment strategy on the planet. How many other strategies lower risk, provide income, and potentially allow for capital growth? There’s reason why so many fund manager employ covered calls as a cornerstone of their trading plans. What can be surprising to many covered call traders (new and experienced […]

Continue Reading

Volatility Will Normalize And Here’s How To Profit When It Happens

| November 5, 2018 | 0 Comments
Volatility Will Normalize And Here’s How To Profit When It Happens

Market volatility has essentially become a mainstream metric in the investment realm – especially for anyone who does any short-term trading. Most traders are now aware of what the VIX is and how a higher level in the volatility index usually means more uncertainty in the market. While investors and traders may not be able […]

Continue Reading

3 Bank Stocks To Sell On This Bounce

| November 2, 2018 | 0 Comments
3 Bank Stocks To Sell On This Bounce

Bears are frolicking in the banking sector — join them! Beaten-down sectors are coming up for air, but their reprieve is bound to be short-lived. Or, at least, that’s what the price action suggests. Downtrends are full of sucker bounces peddling false hope. Take bank stocks for instance. Their trend is pointing lower, and this […]

Continue Reading

An Easy Trade To Make Money From Recent Market Turmoil

| October 19, 2018 | 0 Comments
An Easy Trade To Make Money From Recent Market Turmoil

Trading market volatility can be very profitable because it tends to be more predictable than picking market direction. Yet, volatility trading can also be risky because of its tendency to make big moves on very short notice. Both February and October of 2018 are good examples of this scenario playing out. Still, one volatility behavior […]

Continue Reading

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 […]

Continue Reading

Here’s How To Generate 425% Returns On Higher Interest Rates

| March 21, 2018 | 0 Comments
Here’s How To Generate 425% Returns On Higher Interest Rates

This week, we get the next installment of the FOMC meeting – the big Fed meeting where they decide what to do with interest rates.  The meetings are a bit more interesting these days since rates are going up and some sort of definitive actions tends to take place. Keep in mind, we had several […]

Continue Reading