Tag: trading options

An Essential Options Strategy To Use As The Stock Market Hits New Highs

| July 29, 2019 | 0 Comments
An Essential Options Strategy To Use As The Stock Market Hits New Highs

With the major indices pushing to all-time highs and some of the many names sitting on large double-digit percentage gains, this year alone, it can be difficult to not only hold on but climb aboard even the bluest chip names like Amazon (AMZN) and Microsoft (MSFT) at this stage. But, one strategy that helps overcome the psychological hurdle of […]

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

Do You Want To Become A Better Options Trader?

| June 7, 2019 | 0 Comments
Do You Want To Become A Better Options Trader?

The passing of Memorial Day, with its historical weight, is also a time to look forward — to the light and carefree days of summer. While some have used this turning of the season to clear “sell in May and go away,” I think it’s a good time to brush up on your options knowledge. […]

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

SPIKES Versus VIX: How To Take Advantage Of The Differences

| May 6, 2019 | 0 Comments
SPIKES Versus VIX: How To Take Advantage Of The Differences

Up until last February, the Cboe’s VIX (S&P 500 Volatility Index) was the only market volatility index which could be traded through derivative products. The index itself is not tradeable, but VIX futures, options on those futures, and VIX-related ETFs are all widely popular products. While the usage of these products varied based on the […]

Continue Reading

Using Options To Capture Twitter’s Upside

| April 29, 2019 | 0 Comments
Using Options To Capture Twitter’s Upside

There are a few companies out there which tend to be battlegrounds for investors. These are the stocks where there are often loud contingents of both bulls and bears. The arguments can be very passionate on both sides. The investments in these companies can also be substantial (also from both sides). Probably the best example […]

Continue Reading

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 […]

Continue Reading

Is There Finally A Cheaper Alternative To The VIX?

| February 25, 2019 | 0 Comments
Is There Finally A Cheaper Alternative To The VIX?

When it comes to trading volatility, The VIX has long held the crown as the most viable product on the market. Products based on the VIX, the S&P 500 Implied Volatility Index, have been one of the most notable additions to the trading universe in the 21st century. In fact, the Cboe Global Markets (BATS: CBOE) introduction of tradable […]

Continue Reading

The Options Strategy That You Need To Know

| February 22, 2019 | 0 Comments
The Options Strategy That You Need To Know

One of the most popular options strategies is the covered call, or buy-write, in which one owns underlying stock and sells a call.  It’s a bullish position which generates income through a premium collection. Many investors and money managers consider it a very conservative approach and employ it in their retirement accounts. But suggest selling a put, and […]

Continue Reading

Options Trading: The Right Time For Buy-Write

| September 26, 2018 | 0 Comments
Options Trading: The Right Time For Buy-Write

With the major indices pushing to all-time highs, and some of the many names sitting large double digit percentage, it can be difficult not only holding on, but climbing aboard even the bluest chip names like Amazon (AMZN) and Microsoft (MSFT) at this stage. Fortunately, there’s an options trading strategy that can help you overcome this problem. One way […]

Continue Reading

Options: How To Buy Them Before They Expire Worthless

| September 19, 2018 | 0 Comments
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 […]

Continue Reading

This Is The Biggest Options Trade Ever Made

| July 21, 2017 | 0 Comments
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 […]

Continue Reading

Don’t Fall Prey To Overpriced Options

| February 17, 2017 | 0 Comments
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 […]

Continue Reading

Consider Options

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 […]

Continue Reading

The Secret Between Trading Options And Gambling?

| July 17, 2012 | 0 Comments
The Secret Between Trading Options And Gambling?

In Chicago, home to the CBOE, many people do know who an option trader is.  But that’s clearly not the case in other parts of the country. There are many traders and investors alike that believe an option trader is no different than a poker player. Let me say that some of you will immediately […]

Continue Reading