Category: Options & Warrants
The analysis published under this category are as follows.
Thursday, September 08, 2022
What Is Options Trading And How To Know If It Is Good For You / InvestorEducation / Options & Warrants
By: Steve_Barker
Options trading is the buying and selling of assets that give the buyer the right to specify both the price and the time of purchase of a particular security. With options trading, you have complete control over your financial market decisions.
After purchasing an option, you are free to sell it at any time or day of your choosing. However, there is no penalty for not selling an option you have purchased. The two main categories of options are call and put options.
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Sunday, July 10, 2022
Does Selling Put Options During A Market Downturn Provide A Safety Net? / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
In a significant market downturn, bearish sentiment, if not outright fear, can drive down the share price of good companies rather drastically. When the market is in a sustained selling mood, there can be a substantial disconnect between the long-term fundamentals and the technical price action we see on the chart.
The Temptation to Bottom Fish
What can we do when good companies are trading at what appear to be bargain prices? We could “stick our toe in the water” and buy shares. But what if we’re wrong about whether a bottom in the share price is in place? Or what if the stock takes a very long time to build a base and goes nowhere for an extended period?
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Sunday, June 12, 2022
Trading the Calm Before the Stock Market Storm – Consider Putting On A Long Strangle / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
There are times when markets consolidate and move sideways in a relatively narrow range. We often see low volatility, little trending, and “choppy” price action when the market is slow.
Range-bound, consolidating markets eventually resolve in one direction or the other. Breaking out of a narrow range often takes a catalyst event like a highly anticipated economic report or – in the case of individual stocks – something like an earnings report or FDA approval. Quite often, it is the anticipation of the event itself that keeps price range-bound. Without knowledge of the event outcome, both bulls and bears are waiting it out before making large commitments.
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Wednesday, January 26, 2022
The Synthetic Dividend Option To Generate Profits / Personal_Finance / Options & Warrants
By: Chris_Vermeulen
Many companies regularly distribute a portion of their profits in the form of a dividend to attract investors and incentivize them to remain long-term shareholders. But most companies, ETFs, and commodities don’t pay a dividend at all. When there’s no dividend, the only opportunity for income or a profit comes from a capital gain (or loss) from selling the position.
Wouldn’t it be nice to get regular payouts from “no dividend” investments? As a dividend, these payouts could be used for income. Or, if left invested, our cost-basis could be further reduced with every payout.
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Friday, December 10, 2021
Trading Options in the UK / Stock-Markets / Options & Warrants
By: Russell_Fenton
Some investors are happy with capital growth on their portfolios when trading stock markets, while some are looking for higher returns. There exists an option where there is still potential to make a lot of money, yet with lower risk than buying shares. Options trading can be an appealing method of making money in the financial markets, yet many people fail to understand even the basics of this complex transaction.
Nowadays, many brokers will allow you to sign up for an account and trade options, even without qualifications or financial investments. You will, therefore, only need the required funds to cover the initial margin requirements set out by your broker before you can begin trading.
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Sunday, August 22, 2021
Top Three Biggest Mistakes Made By Options Traders / Interest-Rates / Options & Warrants
By: Chris_Vermeulen
I have been trading options and coaching / mentoring new options traders for years. I have seen new traders who were blindly successful and others who were so frustrated on the verge of giving up, I have seen it all. Over the years, I have seen some very common themes among all traders, especially with options. Options trading can be very rewarding but it is not as easy as buying and selling stocks. There are many more factors and variables you must take into consideration when trading options especially if you are swing trading them or holding them for an extended period of time.
There is a certain skill it requires that is a mix of technical, statistical, and fundamental analysis. These are not skills everyone has and you have to master all three if you want to be a really successful trader. I have noticed stock traders tend to have a good amount of fundamental and technical skills but usually lack in the statistical area. This can cause a problem when it comes to their success. While trading stocks, this might be a great formula that works but when switching to options it could be a losing formula. Many traders don’t know where they went wrong.
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Monday, August 16, 2021
How Options Are Fueling The Markets / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
In the past week, we have seen the Nasdaq and the S&P reach all-time highs. Since the covid crash, we have seen some massive movement to the upside. I believe there are several factors driving these markets up.
First, let’s look at the covid crisis and how it played a role. As a result of the shutdowns, the FED took a really aggressive stance with its quantitative easing measures. Lots of money printing to pay for massive stimulus payouts. The worse news we hear historically is that the markets will react sharply to the downside.
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Wednesday, July 28, 2021
Eight Do’s and Don’ts For Options Traders / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
Trading, especially options, can be very exciting and rewarding. Having said that, you should not be trading options before learning at least the basics about how to trade them. Options are very different from stocks and there are more factors that go into the pricing. Many view it as a get-rich-quick scheme while others think it is gambling. I am here to say it is neither but you have to know the rules before you can trade them if you want to be successful. Last week I covered some little-known basic facts. This week I am covering 8 Do’s and Don’ts for options traders.
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Monday, May 31, 2021
You Should Never Trade Options If You Don’t Know This… / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
Have you ever heard someone say “90% of people that trade options lose money.”? I certainly have. Looking at an options chain can be a dizzying exercise for the uninformed. Delta, Gamma, Theta, Rho, Vega – and let’s not forget – implied volatility? Single, spread, butterfly, condor. What does it all mean?
So what is an option from a high level view?
At the end of the day, an options contract is just a derivative like any other stock, bond, ETF, or other tradable security based on an underlying asset. Most people will look at these other forms of derivatives and have an understanding of why the price fluctuates. For example, if a company posts a strong earnings report and the price of the stock goes up, it is easy to understand what is going on. In the case of options contracts, however, things do get a bit more complicated. Let’s break things down a little bit to start to get an idea of why many investors are afraid to trade options.
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Wednesday, February 24, 2021
How to Protect Your Positions From A Stock Market Sell-Off Using Options / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
Today we are going to explore how you can use options to hedge against a sudden market reversal. As you know I am going to be launching a new options service with an options specialist, Neil Szczepanski, shortly so you should start seeing more and more research on options from us.
The first question we need to answer is will there be a market sell-off? If we first look at the S&P chart below, we can see that we have had an incredible run. In order to determine if this trend is weakening, we need to look at what is happening with key sectors and sector rotation. Since the beginning of 2021, we have seen a rotation into commodity sectors which is typical of a late-cycle surge. This might give us a hint that higher volatility projections might be realized.
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Friday, February 19, 2021
Three More Reasons We Love To Trade Options! / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
Hi everyone, it’s me Neil Szczepanski again and I’m back to finish off telling you why I love to trade options! If you missed the first half of this article entitled “5 Reasons Why People Prefer To Trade Options Over Stocks” then click on the title to revisit it. In this second and final installment, I will walk through how adjustments and risk management of options can help give you better control of your trades and profits. I hope everyone enjoys the information and I look forward to helping everyone win with options trading!
REDUCE RISK
Everyone has heard a story about someone who mischaracterized or misunderstood their options trade, then having their account blow up when the underlying stock goes the wrong way. This happened recently with a Robinhood trader who woke up one morning to see his account at -$730,165. In this tragic event the kid took his life because he thought he had lost $730,165 and couldn’t reach his brokerage to understand his account. We learned later that the negative balance did not represent uncollateralized indebtedness at all, but rather his temporary balance until the stocks underlying his assigned options actually settled into his account. In short it was a delay in processing of the options contracts in his account, and not the actual trade that went awry. This is why it is very important that in this game of trading you get the proper training so you understand your risk. The risk is real.
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Wednesday, February 17, 2021
5 Reasons Why People Prefer to Trade Options Over Stocks / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
As technical traders, we know the importance of following the price charts using proven trading strategies and implementing risk and position management. Here at TheTechnicalTraders.com we are stepping things up a notch by adding options to our trading.
By using options, a trader can leverage, hedge positions, and generate income via selling premiums. There are basic options, strategies, and complex, and everything in between. Because of that, I have brought options trading specialist Neil Szczepanski to join our team. I will let Neil introduce himself.
Hi everyone! Neil Szczepanski here. In case you are wondering it is pronounced “Sus’ pan ski”. Yes, I have roots in eastern European ancestry and I’m first generation. I love options and have been trading them for many, many years. I like options because you have more ways to be profitable in your trading. I hate putting on a position and then waiting for the market to go your way. I want to be in control of my trades and options allows for that. Also, trading can equal freedom.
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Friday, September 02, 2016
Most Stock Market Investors Are One Recession Away from Annihilation / Stock-Markets / Options & Warrants
By: John_Mauldin
BY JARED DILLIAN: Would you rather:
- Make a little money most of the time, with a small chance of losing a lot?
- Lose a little money most of the time, with a small chance of making a lot?
Probably depends on how you are wired.
(Most people are wired like number one.)
Wednesday, April 27, 2016
Successful tips for Options Trading – When you trade to win! / InvestorEducation / Options & Warrants
By: Boris_Dzhingarov
An option is a contract which showers the buyer with the authority but not the liability to sell an asset at a particular price on the pre-fixed date or before it. Just as a bond or stock, an option is also a security. It is nothing but a binding contract which has some stringent and definite properties and terms. Are you still confused about options trading? Well the idea behind this trading option lies clear in many of the daily situations. For instance, if you love a house and want to buy it but you don’t have the money required to do so. You then speak to the homeowner and negotiate a good deal which allows you to buy the house at $300,000 and for reaping benefit of this option; you pay an added price of $3000. This is a case similar to that options trading. Here are few points to watch out for before taking the plunge.
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Tuesday, March 22, 2016
Everything You Need To Know About Binary Options Trading Signals / InvestorEducation / Options & Warrants
By: Boris_Dzhingarov
Binary options trading is highly popular at the moment and it is not at all difficult to understand why since the premise is incredibly simple and you can end up making a lot of money in a very low period of time. The problem is that most people end up not being properly informed. They end up using specific strategies that are way too advanced for the education they have. With binary options trading signals this is exactly what tends to happen.
Friday, February 26, 2016
Binary Options Trading Strategies You Need To Know / Stock-Markets / Options & Warrants
By: Boris_Dzhingarov
Whenever you want to trade binary options you need to have a solid trading strategy. This is a necessity for all the traders that actually want to be successful. Having a binary options trading strategy will help you to get over any even that is unexpected and you will be able to increase your profits on the long run. Remember the fact that binary options have a really high volatility and you cannot have just one strategy that will always work. The smart trader has high binary options knowledge and uses that in order to be successful.Read full article... Read full article...
Monday, November 23, 2015
Crude Oil Swinging For The Fences - A 20 to 1 Option Play / Commodities / Options & Warrants
By: Bob_Kirtley
Over the last year oil, and commodities in general, have been much unloved. China and emerging market woes have created demand concerns while a mountain of supply side pressure has also been in play. This has seen oil prices fall from over $100 in early 2014 to hovering just above $40 now at the end of 2015. We believe that the rapid decline and extreme pessimism in the oil market could create a trading opportunity, and that this would be best harnessed by using options.
Friday, September 04, 2015
Why September’s Stock Market Volatility Is a Huge Opportunity for Options Traders / Stock-Markets / Options & Warrants
By: ...
It’s no secret that I think this volatility will continue, at least in the short-term, and the best way to weather the storm is to make sure you’ve got options in your portfolio.
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Tuesday, September 01, 2015
Three Things Every Master Trader Knows About Trading Options / InvestorEducation / Options & Warrants
By: ...
I don’t want that happen to you.
While I expect this increased volatility to continue as we head into September and October, things seem to have settled down for the moment, and the markets have, for the time being, resumed their upward march.
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Friday, August 28, 2015
The 10 Best Stocks for Options Trading Plays in This Market / Companies / Options & Warrants
By: ...
MoneyMorning.com Tom Gentile writes: The biggest market drop in recorded history on Monday… a wild end-of-day plummet on Tuesday… a huge up day on Wednesday… and more bullish action today?
Talk about opportunity!
Right now, the only real barrier to trading profits is a stock that doesn't move.
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Wednesday, August 26, 2015
The One Trading Strategy You Needed for Stock Market Crash / Stock-Markets / Options & Warrants
By: ...
MoneyMorning.com Tom Gentile writes: After yesterday – the worst trading day in recent memory – I want to get serious with you about risk.
If you get this right, you could have banked serious profits yesterday.
And I want to make sure you DO get it right.
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Friday, July 31, 2015
One of the Greatest Income-Producing Tools for Retirees / InvestorEducation / Options & Warrants
By: DailyWealth
One of the Greatest Income-Producing Tools for Retirees
Dr. David Eifrig writes: It might sound crazy... but retirees can safely earn 12% to 20% income streams on their savings.
My Retirement Trader readers have been using one strategy to rake in thousands of dollars every month.
It's simple. And once you get familiar with how it works, you can use this strategy to safely and conservatively generate 12% or more in annual income on a retirement account.
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Monday, June 15, 2015
Key Steps to Your First Options Trades / Stock-Markets / Options & Warrants
By: ...
MoneyMorning.com Tom Gentile writes: During the past month we've welcomed in thousands of new subscribers over at Power Profit Trades.
Many of you have started out with "paper trading" on my picks and are excited at the prospect of pocketing the gains in real time.
Taking advantage of what veterans like me didn't have when we started trading is a great idea! I know it's not like real trading, but one of the things using a "virtual" account will do is help you get familiar with order placement through the platform you intend on using BEFORE you use real money.
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Saturday, May 30, 2015
Options Pricing - Covert Gamma, Portfolio Insurance, and STDs / InvestorEducation / Options & Warrants
By: John_Mauldin
By Jared Dillian
This piece requires some knowledge of option pricing, so I’m going to bring everyone up to speed.
This is the P&L diagram of a long call option:
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Wednesday, April 01, 2015
How Traded Options Can Power a 300%-Plus Gain on Twitter / Companies / Options & Warrants
By: Money_Morning
Tom Gentile writes: Twitter has often been dismissed as a company that should have sold out to Facebook (Nasdaq: FB) years ago, and until recently no one really wanted to own its stock.
I disagree. I believe now is the right time to buy Twitter Inc. (NYSE: TWTR) stock, and not just because it's starting to show up on the Street's buy lists.
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Friday, March 27, 2015
How Investors can Maximize Disney Stock "Magic" / Companies / Options & Warrants
By: Money_Morning
Even though we're in the middle of March Madness right now, I'm not going to talk about this year's "Cinderella" teams, which come out of nowhere and make it to the Final Four in college basketball.
No… the real Cinderella story is happening at U.S. box offices. A simple Disney remake of the classic film managed to gross over $70 million in one weekend earlier this month. There's clearly investment potential in this success.
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Wednesday, July 16, 2014
Understanding Stock Warrants / InvestorEducation / Options & Warrants
By: Dudley_Baker
If you don’t understand stock warrants, you are not alone. Very few of the professional newsletter writers and analysts understand them so why should you?
Allow me to give you a brief education on stock warrants in the following paragraphs and tell you exactly why you need this information.
Thursday, March 27, 2014
Covered Calls / Stock-Markets / Options & Warrants
By: Don_Miller
The strategy I’m writing about today is one of my favorite, guaranteed moneymakers. These are trades we can all easily make, requiring no capital outlay and guaranteed to make a profit or you don’t make them. What’s the catch? We might occasionally find ourselves lamenting how much more money we might have made.
Experienced investors have likely figured out that I’m talking about a stock option called a “covered call.” Buying options is for speculators, and that’s not what I’m talking about today. I want to show you the one and only option trade that meets my stringent criteria for comfort.
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Tuesday, December 17, 2013
Stock Market Options Triple Witching vs Santa Rally Explained / Stock-Markets / Options & Warrants
By: J_W_Jones
With the last major news item for 2013 less than 48 hours away, I thought I would share some insights as to what the S&P 500 Cash Index (SPX) options were pricing into the Federal Reserve’s monetary policy announcement due out Wednesday.
After the news is released and the week ends, it will be time for Santa Claus to come to Wall Street. While most people believe in the Santa Claus rally, what few understand is the bullish undertones that traditionally accompany a triple witching event.
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Friday, November 15, 2013
Option Probabilities Spell Possible Trouble for U.S. Treasury Bonds / Interest-Rates / Options & Warrants
By: J_W_Jones
The incredible rally in equities in 2013 has begun to stir concern among many that the stock market is now in a bubble. We have entered the euphoric stage of this bull market and equity prices cannot and will not go lower according to some talking heads in the financial punditry.
While chatter is starting to heat up that equities are in a bubble, the real bubble seems to be ignored for the most part. The larger, more concerning bubble is in the Treasury marketplace where the Federal Reserve continues to print money to purchase treasury bonds to help keep interest rates artificially low.
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Thursday, October 10, 2013
Options Market Forecasting Future Stock Market Price Action Direction / Stock-Markets / Options & Warrants
By: J_W_Jones
By now the major media outlets have made sure to inform the public that the U.S. government is shut down, or partially shut down depending on your political perspective. Most financial pundits are looking to the recent past for clues about what to expect in the future.
While the situation appears to be similar to what we witnessed in 2011 with the debt ceiling debacle, the outcomes may be significantly different. I am a contrarian trader by nature, and as such I am constantly expecting for markets to react in the opposite way from what the majority of investors expect.
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Wednesday, September 04, 2013
The Perfect Trade for Today's Stock Market / Stock-Markets / Options & Warrants
By: Money_Morning
Robert Hsu writes: This is a great way to make some extra money right now.
Over the next 14 days, I expect stocks to remain mired in a relatively tight trading range, as nobody wants to place any really big bets on what's going to happen before the Federal Reserve makes its Sept. 18th announcement on if and/or how it will "taper" its QE bond-buying program.
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Thursday, May 02, 2013
How to Profit as Stock Prices Plummet - High Risk, High Return / InvestorEducation / Options & Warrants
By: DailyGainsLetter
Moe Zulfiqar writes: It’s not uncommon for a company to get in trouble and suffer for many quarters, or even years, before there are some improvements. As a result, when a company’s conditions deteriorate, the stock prices follow in the same direction—they decline.
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Tuesday, February 12, 2013
Trading Binary Options - Putting Knowledge into Good Use / InvestorEducation / Options & Warrants
By: Submissions
Brentt Taylor writes: When it comes to binary options it is not a gamble. It is important to have good knowledge, take a good attitude and learn skills to be consistently successful. Knowledge in binary options comes in several forms. We will take a look at a few below:
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Thursday, February 07, 2013
The Anatomy of an XOM Earnings Options Trade / Companies / Options & Warrants
By: J_W_Jones
One of the most interesting aspects of options is the myriad opportunities presented for high probability trades for those who understand the details of option behavior.
For example, I have recently discussed the routinely observed collapse of implied volatility immediately following an earnings release. We have looked at several examples of profitable trades constructed to benefit from this expected decline in implied volatility.
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Tuesday, January 22, 2013
How to Trade Options Around Corporate Earnings / Companies / Options & Warrants
By: J_W_Jones
The hallmark of a professional option trader is the ability to use a wide variety of trade structures in order to exploit opportunities to profit from specific situations the market presents. One of the opportunities routinely presented multiple times yearly is the impending release of earnings.
Underlying the logic of earnings trades is the stereotypic pattern of increasing implied volatility of options as earnings approach. This pattern is so reliably present that experienced options traders can recognize the approximate date of an impending earnings release by simply perusing the implied volatility of the various series of upcoming options.
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Saturday, December 22, 2012
Using a Put Butterfly to Options Trade Cummins Inc. / Companies / Options & Warrants
By: J_W_Jones
Entomologists tell us that a group of butterflies can, at the choice of the writer, be termed a lek, a rabble, or a swarm. I was first struck today by the bearish Fibonacci based pattern initially described by Larry Pesavento termed a bearish butterfly which had completed in heavy engine manufacturer Cummins Incorporated (symbol CMI). Read full article... Read full article...
Thursday, November 08, 2012
Google Earnings Options Trading Idea / Companies / Options & Warrants
By: J_W_Jones
We recently discussed the impending release of third quarter earnings for Google (GOOG), analyzed the expected move in light of then-current options pricing, discussed the expected behavior of the implied volatility of the options, and finally constructed an option trade structure we thought had a high probability of success. I thought it would be helpful to discuss how our prognostications fared and finally to consider “lessons learned” in this exercise.
Wednesday, October 17, 2012
Trading Apple Stock Using Options Short Strangles / Companies / Options & Warrants
By: J_W_Jones
My last missive dealt with a simple trading plan for XOM using the straightforward easily managed and easily understood strategy of selling naked puts and either allowing assignment of the stock and entering a covered call campaign or closing the position after extracting most of the premium initially received. Continuing on the theme of basic strategies, I would like to look at a different high probability strategy applicable to AAPL.
Sunday, September 23, 2012
How to Play Apple on the Cheap, Buy A Ferrari for 15 Cents on the Dollar / Companies / Options & Warrants
By: Investment_U
David Eller writes: If you could buy a Ferrari for 15 cents on the dollar, you would, right? How about if you could trade a high-value stock for a fraction of its selling price?
Well… you can. And it’s not terribly difficult…
But first, let me briefly explain why you should be focusing on exactly these types of high-value stocks in the weeks ahead.
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Wednesday, August 29, 2012
How to Protect Your Gains in Today's "Toppy" Stock Markets With Options / Stock-Markets / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
With so little enthusiasm, this summer's "slow-motion" rally may be coming to an end.
In fact, both the S&P 500 and the Dow Industrials lost ground last week, marking their first weekly declines since early July.
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Thursday, August 09, 2012
Using Volatility to Trade IBM Stock Options / Companies / Options & Warrants
By: J_W_Jones
One of the hallmarks of an option based trading approach is the ability to accommodate various market conditions by varying the specific construction of your option trade in order to maximize the probability of success.
In order to form a logical basis for trade selection, it is best to think in terms of each of the three primary forces impacting option pricing- price of the underlying, time to expiration, and implied volatility.
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Monday, July 23, 2012
Using Options to Trade Apple AAPL Corporate Earnings News / Companies / Options & Warrants
By: J_W_Jones
Trading stock around the times of earnings releases is a notoriously difficult operation because it requires accurate prediction of the direction of price movement. Wrong predictions can expose the trader to substantial loss if large unexpected moves occur against his position.
Because of the risk associated with these events, many traders use options to define their risk and protect their trading capital. The purpose of my missive today is to present several approaches to using options to capture profits during the earnings cycle and to help present the logic and call attention to a major potential pitfall of using these vehicles in this specific situation.
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Wednesday, July 18, 2012
Option Traders Profit From The Passage of Time / InvestorEducation / Options & Warrants
By: J_W_Jones
My most recent missive discussed some of the nuances of the options Greek, Delta which deals with the change in option price with regard to changes in price of the underlying. Today I would like to examine some of the practical details surrounding the second of the primal forces describing the behavior of options with regard to the passage of time. This second Greek is Theta.
As opposed to the value of a stock position which varies only in relation to changes in price, options are subject to changes in value as a result of the interplay of three factors: price of the underlying, time to expiration, and implied volatility.
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Thursday, June 28, 2012
Using Standard Deviation & Probability to Trade Options / InvestorEducation / Options & Warrants
By: J_W_Jones
I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must understand in order to make use of this helpful metric include:
Monday, June 18, 2012
Options Trading Strategies: Taking the Mystery Out of Puts and Calls / InvestorEducation / Options & Warrants
By: Money_Morning
Michael C. Thomsett writes:
The hardest part of learning about options trading strategies is getting used to the language. Once you nail that, you're most of the way there.
Here are the terms you are going to need to learn to understand and use options. Keep in mind that the best way to master jargon is by applying it in real situations.
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Monday, June 11, 2012
Understanding Implied Volatility When Trading Options – Part 1 / InvestorEducation / Options & Warrants
By: J_W_Jones
We have recently discussed the importance of routinely considering the value of implied volatility in a historical perspective for each underlying before considering any of the various option positions potentially appropriate for trading a given underlying security, index, or ETF. Failure to consider this data represents a major cause of the failure of otherwise favorable option positions.
Wednesday, June 06, 2012
Options Trading: The Most Important Piece of Advice for Beginners / InvestorEducation / Options & Warrants
By: Money_Morning
Michael C. Thomsett writes:
Here it is. The most important piece of advice I have for anyone thinking about options trading.
Don't let the red tape hold you back.
A lot of experienced and sophisticated investors shy away from anything that involves paperwork.
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Thursday, May 31, 2012
Slash Your Risk and Make Money with Traded Options / InvestorEducation / Options & Warrants
By: Money_Morning
Michael C. Thomsett writes:
If you feel like Alice in Wonderland when you start to look into options trading strategies, you're not alone.
Even so-called "experts" struggle with options. It gets even uglier when they attempt to bring it down to earth for their readers.
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Friday, May 18, 2012
A Different Approach to Trading Apple Stock Using Options / Companies / Options & Warrants
By: J_W_Jones
Apple (AAPL) is one of the most actively traded stocks currently. For the trader who trades only stock, there are two major difficulties in executing trades in this stock:
1. It is breathtakingly expensive.
2. It exhibits periods of neck snapping volatility exposing the trader to substantial losses if he gauges the direction wrong and does not act quickly.
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Thursday, April 26, 2012
How to Trade Weekly Options / InvestorEducation / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
To loosely paraphrase Robert Burns, the best-laid plans of mice and stock traders sometimes go awry.
But with some creative use of weekly options, that doesn't necessarily mean you have to take your losses.
Here's an example of what I mean.
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Tuesday, April 10, 2012
How to Use Options to Make a Quick Profit on J.P. Morgan Earnings / Companies / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
It's earnings season again!
Among the most eagerly awaited results will be the financial earnings, many of which are still struggling to fully recover from the 2008-2009 financial collapse.
The projections released so far look pretty rosy.
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Thursday, March 29, 2012
Option Trading: A Basic Explanation of Debit Spreads / InvestorEducation / Options & Warrants
By: J_W_Jones
Welcome back to the world of options. My reality exists in three dimensions and far more combinations of potential positions than does the one-dimensional world of the stock trader.
The view from my turret is ruled by the three primal forces of options — time to expiration, price of the underlying, and implied volatility. Consider for a moment the fact that each of these factors can independently impact a given option.
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Wednesday, March 28, 2012
Outperform the Stock Market with Covered Call Options / Companies / Options & Warrants
By: Jim_Fink
Today’s rock-bottom interest rates and overpriced financial assets have created a low-return investment world that requires proactive yield-enhancement techniques such as covered calls, to generate the additional investment rate of return needed to retire comfortably.Selling covered calls generates additional income and lowers the break-even cost basis of stock you already own, thus reducing the downside risk of stock ownership at all price points.
Read full article... Read full article...
Monday, March 26, 2012
How to Earn a 9.25% in 30 days While Waiting for Apple's Dividend / Companies / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Although it's been one of the market's darlings for a decade now, dividend-oriented investors have long shunned computer giant Apple Inc. (Nasdaq: AAPL) because, well ... it didn't pay one.
That, coupled with AAPL's historically high share price, has always kept me from buying Apple stock - but, as a trader, it hasn't kept me from generating income with Apple options.
Read full article... Read full article...
Tuesday, March 13, 2012
How to Use Options to Hedge Against a Stock Market Correction / Stock-Markets / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Stocks have been mostly higher the past five months, with the Dow Jones Industrial Average recently topping 13,000 for a few days and the Nasdaq Composite touching the key 3,000 mark on the final day of February.
However, the markets have turned erratic the last week or so, and big moves like last Tuesday's plunge have left many investors to worry about a looming stock market correction.
Read full article... Read full article...
Monday, March 05, 2012
How Credit Put Spreads Can Boost Your Gains and Lower Your Risk / InvestorEducation / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Last month, Money Morning showed you how to use a technique called selling "cash-secured puts" to generate a steady flow of cash from a stock - even if you no longer own the shares.
It is a highly effective income strategy that can also be used to buy stocks at bargain prices.
Read full article... Read full article...
Friday, February 24, 2012
Stock Options Trading Explained / InvestorEducation / Options & Warrants
By: J_W_Jones
“Anticipate the difficult by managing the easy.” ~ Lao Tzu ~
The peculiar vocabulary and concepts inhabiting an options trader’s thoughts are often the source of confusion to visitors to my world. I have often pondered that learning to understand options is a lot like learning a foreign language. When you arrive in the country whose language you seek to learn, you need a functional vocabulary immediately.
Read full article... Read full article...
Wednesday, February 22, 2012
Understanding the Basic Language of Option Trading / InvestorEducation / Options & Warrants
By: J_W_Jones
“Anticipate the difficult by managing the easy.” ~ Lao Tzu ~
The peculiar vocabulary and concepts inhabiting an options trader’s thoughts are often the source of confusion to visitors to my world. I have often pondered that learning to understand options is a lot like learning a foreign language. When you arrive in the country whose language you seek to learn, you need a functional vocabulary immediately.
Read full article... Read full article...
Tuesday, January 10, 2012
An Options Strategy That Will Save You Some Money / Companies / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Whether you credit a Santa Claus rally, an early January Effect, or some other driving market force, there's no disputing the strong finish posted by stocks in 2011 - or the healthy 2012 opening advance added in the first week of January.
To be specific, stocks - as measured by the Standard & Poor's 500 Index - rose from 1,204.00 at the close on Monday, Dec. 19, to 1,257.60 on Friday, Dec. 30, then jumped to 1,280.15 at midday yesterday (Monday), a gain of 6.32% in just three weeks. The Dow Jones Industrial Average did almost as well, climbing from 11,751.96 on Dec. 19 to 12,398.29 in Monday trading, a 21-day gain of 5.50%.
Read full article... Read full article...
Friday, August 12, 2011
High Risk Reward Trading Strategy in VIX Put Options / Stock-Markets / Options & Warrants
By: Money_Morning
Keith Fitz-Gerald writes: Many investors dream of making the "big trade."
Spurred on by stories of fabled investors who accumulated generations of wealth with just one big trade, they talk incessantly about what they could or should have done.
Read full article... Read full article...
Thursday, August 11, 2011
Why do you buy put options and how do you calculate your profit? / InvestorEducation / Options & Warrants
By: Submissions
Susan Hayes writes: A put option is the right, but not the obligation, to sell a stock. It is, in essence, an insurance policy on a financial market security.
There are two reasons why an individual or institution might buy a put option;
Read full article... Read full article...
Monday, August 01, 2011
The Gold and Silver Warrants Index (GSWI) in Review / Commodities / Options & Warrants
By: Lorimer_Wilson
Virtually nothing is being written these days on the few long-term warrants associated with gold and silver mining companies. I suppose that is to be expected given that there are only 22 such warrants and they are associated with only 19 companies in total. That is unfortunate because those who are in the know can take advantage of the significant leverage warrants generate in a bull market over investing in physical gold and silver, precious metals company stocks and mutual/exchange traded funds. What am I talking about - and which warrants am I referring to? Let me explain.
Wednesday, July 13, 2011
Learn How to Trade the Gold GDX Fibonacci Butterfly Options Spread / InvestorEducation / Options & Warrants
By: J_W_Jones
One of the many useful characteristics of options is that the astute trader can design strategies to capture profit from predicted price action forecasts from a wide variety of technical indicators. I think it is helpful to have knowledge of several approaches to technical analysis in order to recognize patterns that other traders may not see.
Wednesday, June 01, 2011
How to turn Short-term Market Price Gyrations into Big Profits Using Options / InvestorEducation / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Everyone acknowledges that at its most basic level the stock market is driven by fear and greed. And, in the past, the immediate impact of fear has been far more dramatic than the short-term effect of greed.
In other words, stock prices have historically tended to fall faster - and further - when investors are running scared than they rise when investors get a pleasant surprise.
Read full article... Read full article...
Saturday, May 14, 2011
How to Trade Silver Options for BIG Profits / InvestorEducation / Options & Warrants
By: J_W_Jones
Hi-Yo Silver, Away, Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.
Monday, April 11, 2011
Option Flexibility Allows Traders To Adjust Positions As Stock Market Changes / Stock-Markets / Options & Warrants
By: J_W_Jones
“I’ve been hanging onto nothing when nothing could be worse” Heaven When We’re Home The Wailin’ Jennys
As an options trader, I continue to be impressed by the wide variety of choices available to modify a trade that is not quite going the way I initially predicted. This approach may be a bit unfamiliar to the trader whose experience has been primarily with trading stocks. The choices for a stock trader are really only two: open or close a position.
Read full article... Read full article...
Wednesday, March 16, 2011
Options Trading Lesson on Triple Calendar Spreads / Interest-Rates / Options & Warrants
By: J_W_Jones
One of the characteristics of option trades that is particularly vexing to the new trader is the almost infinite variation in which individual options can be combined to produce a seemingly infinite array of choices. These combinations of the various individual options are more than a theoretical exercise; each individual combination often produces a unique Profit & Loss curve.
Monday, February 28, 2011
Hidden Assumptions in Option Pricing / InvestorEducation / Options & Warrants
By: Robert_Murphy
Steve Landsburg is an economics professor at the University of Rochester, and author of some great books on free-market thinking. However, in a recent blog post he gave a misleading explanation of option pricing. It's worth going over the episode because it beautifully illustrates the tendency of economists to overlook the assumptions they sneak into their arguments, particularly when it comes to discussions of the financial markets.
Tuesday, February 22, 2011
NetFlix, Butterflies and Option Expiration / Companies / Options & Warrants
By: J_W_Jones
“I love the smell of napalm in the morning” Lt Col Bill Kilgore, Apocalypse Now
One of the opportunities available to the knowledgeable options trader is the ability to capitalize on major price movements while maintaining an acceptable risk profile. These opportunities are particularly attractive when they occur late in the options cycle because of the rapidly accelerating decay of the time premium of options. In appropriately structured positions, this time decay can be a wind at your back as the time premium relentlessly goes to zero at the closing bell on options expiration Friday.
Read full article... Read full article...
Tuesday, January 25, 2011
Warning to Options Traders Looking at NetFlix Corporate Earnings / Companies / Options & Warrants
By: J_W_Jones
One of the hardest things for me to remember is not to believe everything I see. I am a sucker for the latest “can’t lose” strategy supported by the experts. This morning I ran across a trade that looked too good to be true. I think it is, but I think it is instructive to walk through the potential hidden land mine. The event is the Wednesday afternoon release of NFLX earnings but there is a hidden trap for option traders using one commonly used earnings play structure.
Monday, January 24, 2011
Sell Covered Call Options to Benefit from Stock Market Pause / Stock-Markets / Options & Warrants
By: Profit_Confidential
George Leong writes: The lack of any catalyst, along with nervousness regarding the banks, is helping to exert continued downward pressure on stocks. The seven-week winning streak by the S&P 500 is at risk. And, without leadership, markets may stall. Should this happen, write some covered calls to generate some premium income and reduce the average cost base of your positions. Be careful, as a market surge could take out your position at the strike price. Make sure you are comfortable with the strike price of your covered call.
Read full article... Read full article...
Wednesday, January 19, 2011
Using Double Calendar Options Spreads to Capitalize on Corporate Earnings / InvestorEducation / Options & Warrants
By: J_W_Jones
IBM will reported earnings after the closing bell on Tuesday, January 18. For traders maintaining a position in common stock during earnings releases and the frequent price gyrations can result in uncomfortable moments.
Earnings releases for the options trader do not force us to take a position in which we must correctly predict the direction of price action stemming from the earnings release. By exploiting the typical changes in option pricing that reliably and reproducibly occur as earnings approach, it is possible to establish a broad potential range of profitability that extends for a considerable distance both above and below the current price of the underlying.
Read full article... Read full article...
Wednesday, January 19, 2011
Options, A More Flexible Way To Target Profits and Maximize Leverage / InvestorEducation / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
Standard options have long offered a more flexible way to invest. But a relatively new product called Weekly Options, or "Weeklys," gives investors an even more efficient way to use leverage and target profits.
Weekly options have the same terms as standard options, except they expire every Friday instead of every third Friday.
Read full article... Read full article...
Thursday, December 30, 2010
Bullish, But Nervous? Here's how to protect your Stock Profits - and make more... / Portfolio / Options & Warrants
By: Money_Morning
By Larry D. Spears writes:
Since bottoming out in early July, the stock market has turned in a brilliant performance, giving many investors Christmas stockings bulging with profits. However, it also has left a lot of investors nervous - though not the ones that know how to use options.
Monday, December 06, 2010
How to Play Stock Market Uncertainty With an Options Straddle / Stock-Markets / Options & Warrants
By: Money_Morning
Larry D. Spears writes:
It's often said that the only thing certain in the stock market is uncertainty - and that's certainly been the case this fall.
Since 1950, September has consistently been the worst month for stock performance and October is most notable for the market crashes it has seen - 1929 and 1987, to name two.
Read full article... Read full article...
Saturday, November 20, 2010
S&P 500, Treasuries, Gold, & Dollar are At Key Price Levels / Stock-Markets / Options & Warrants
By: J_W_Jones
Another example of Mr. Market playing games with traders and investors as equities and precious metals took part in a strong rally. Some market prognosticators noted short-term oversold conditions across the board while others discussed the potential for a strong reversal that could potentially take out recent highs. In addition to the regular banter, to the average retail investor the market sure looks rigged when the government decides to sell a large stake in a massive IPO offering and a shaky tape suddenly becomes stronger than garlic.
Tuesday, October 05, 2010
Learn How Out-of-the-Money Butterflies Create Profits Trading SPX Options / InvestorEducation / Options & Warrants
By: J_W_Jones
Over the past few weeks the broad stock market has seemingly grown increasingly more bullish. Market pundits, traders, and even high profile money managers are stating publicly that the easy trade over the next few years will simply be being long high quality stocks. While time may prove these managers wise, it is likely a bit early to be that bullish. Read full article... Read full article...
Thursday, September 30, 2010
Time for a Paradigm Shift in Your Investment Portfolio / Stock-Markets / Options & Warrants
By: Dudley_Baker
With gold and silver hitting new highs the markets are finally getting very exciting for those of us investing in the natural resource sector. Great gains are being made and the big move which we expect is still in front of us and could possibly unfold within the next 6 months.
This is the time investors should be asking themselves if they are correctly positioned to maximize their gains should this big move occur. One of the legends in the precious metals sector once said, "An investor invests 100% of their money to make 10% a year while a speculator will invest 10% of their money in the attempt to make over 100%."
Read full article... Read full article...
Saturday, September 18, 2010
Using Iron Condors to Create Profits Trading SPX / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
This recent rally has many market pundits believing the market will continue higher, fueled by slightly improved economic data points. The bulls realize that the all important S&P 1130 level is not that far overhead; if they can push the SPX through that level with strong volume, a rally could play out. The charts below are using the S&P E-Mini contract for analysis purposes.
Monday, September 13, 2010
Learn How Butterflies Can Create Profits When Trading Gold GLD ETF / InvestorEducation / Options & Warrants
By: J_W_Jones
In recent articles, we discussed that Theta (Time Decay) has the potential to cause option prices to decline dramatically, particularly in the final weeks leading up to option expiration. As it turns out, we are now in that very period of time and option strategies that utilize Theta (time) decay as their profit engine can really produce some outstanding risk/reward opportunities. Vertical spreads, butterflies, and iron condors can all be utilized to create profits in this environment, with a crisply defined amount of risk. When risk can be accurately defined, option traders can shape their expected perception of price action around their own unique time frame and risk profile. Read full article... Read full article...
Saturday, September 04, 2010
Learn How to Create Synthetic SPX Equity Positions Using Options / InvestorEducation / Options & Warrants
By: J_W_Jones
For most equity traders, the S&P and/or the Dow are watched quite closely. While these indices are usually just as important to option traders, the volatility index is generally closely monitored as well. There are a variety of volatility indices to watch, but most traders look at the S&P volatility index which is commonly referred to as "The VIX."
Friday, August 27, 2010
The Stealth Greek Of Options Trading: Vega / InvestorEducation / Options & Warrants
By: J_W_Jones
In my previous missives on the Greeks of the option world, we have spent most of our time focusing on Theta and Delta. In the real world of option trading, option prices are the subjects of three primal forces: price of the underlying, time to expiration, and implied volatility. Delta and theta address the first of these two primal forces. The third primal force, implied volatility, is by far the least known by newcomers to the option trading world. However, while it is usually not respected or even known by many new to trading options, it typically is the most frequently unrecognized force resulting in is the cause for significant trading capital deterioration.
Saturday, August 21, 2010
Risk Comparison: Options Versus Equities – Part 1 / InvestorEducation / Options & Warrants
By: J_W_Jones
While future articles will return to focusing on the option Greeks, a recent comment regarding risk really piqued my interest. The age old discussion about risk versus reward, equities versus options, and the fundamental difference between Nassim Taleb’s “Black Swan” risk and what most people perceive as ordinary risk.
Sunday, August 15, 2010
Learning How Theta Can Be Utilized to Trade Gold / InvestorEducation / Options & Warrants
By: Chris_Vermeulen
A fundamental knowledge of Theta is imperative in order to understand the mechanics and construction of option strategies. In many cases, Theta is either the profit engine or the means by which experienced option traders reduce the cost of opening a new position. Theta can even take an ETF that pays no dividend and create a monthly income stream utilizing a technique known as a covered call write.Read full article... Read full article...
Tuesday, August 10, 2010
Learning How to Profit From Theta When Trading SPX Options / Stock-Markets / Options & Warrants
By: Chris_Vermeulen
J.W. Jones writes:
As discussed in the first article, “The Hidden Potential of Learning How to Trade SPX and Gold Options” I pointed out that there are several fundamental principles that must be mastered before profits can be attained when trading options. Novice traders typically skip the discussion about “The Greeks” and skim over volatility only to watch their precious trading capital disappear.Read full article... Read full article...
Saturday, August 07, 2010
Healthcare, A Safe Options Strategy for Retired Investors / Companies / Options & Warrants
By: DailyWealth
Dr. David Eifrig writes: Most people know stock options are a great way to get rich in America...
Take Stephen Hemsley, CEO of the big insurance firm United Health Group. His 2009 salary came in around $9 million. But a decade earlier, he received stock options as part of his compensation package. In 2009, he exercised 4.9 million of them for a total gain of $98.6 million.
Tuesday, August 03, 2010
Gold Stocks Warrants, Options and LEAPS – It’s All About Leverage / Companies / Options & Warrants
By: Dudley_Baker
Investors looking for a more interesting and potentially rewarding approach to investing in the natural resource shares should investigate the use of warrants, options and LEAPS.
The use of all three or any of these investment vehicles positions the investor to maximize their gains in the natural resource sector in the coming months.
Read full article... Read full article...
Thursday, July 15, 2010
The Ultimate Stock Market Insurance Policy / InvestorEducation / Options & Warrants
By: Investment_U
Karim Rahemtulla writes: It’s a question that trickles in consistently from Investment U readers:
“How do I weight my portfolio properly in terms of asset allocation that offers a mix of upside potential and downside protection?”
Read full article... Read full article...
Tuesday, June 29, 2010
How to Use Stock Options to Insure Your Holdings Against Short-Term Pullbacks / Stock-Markets / Options & Warrants
By: Money_Morning
Larry D. Spears writes: Stock options are among the most versatile tools available to investors. They can be used as a low-cost way to speculate on expected price movements, generate added income on stock holdings, and to lock in gains on profitable positions or hedge against market reversals.
Monday, June 14, 2010
Options-Straddle Strategy Defensive Investing to Defeat Stock Market Volatility / InvestorEducation / Options & Warrants
By: Money_Morning
Larry D. Spears writes: It's often said the stock market can deal with anything but uncertainty, but uncertainty is about all the U.S. stock market has to feed on these days - and that has translated into raging volatility and huge swings in both the major market indexes and the prices of many individual stocks.
Tuesday, June 08, 2010
How to Make a 59% Dividend From BP / Companies / Options & Warrants
By: DailyWealth
Tom Dyson writes: The Gulf of Mexico oil leak is a disaster for the environment, a disaster for the local economy, and may even prove to be a disaster for the stock market if the government decides to punish the offshore drilling industry.
But it could be the best thing that happens to your portfolio this year...
Saturday, February 06, 2010
An Interesting Options Approach To Accumulating Shares of Philip Morris Int'l / Companies / Options & Warrants
By: Submissions
Kevin Duffey writes: As the market seems to be in correction mode in recent weeks, I’m starting to become more focused on some positions that I want to accumulate. One of these has been Philip Morris Int’l (PM).
Read full article... Read full article...
Thursday, January 28, 2010
Keeping Your Options Open (and Valuing Them) / InvestorEducation / Options & Warrants
By: Andy_Sutton
It is often said that there is nothing new under the sun. Truly, economic events of late have demonstrated this in spades. There is little that is new, just different flavors of the same. So, in the absence of anything substantially new to add to the collection of events this week, I am going to take an opportunity to return to some of the analytical topics that I’ve had but a few precious chances to deal with over the past three and a half years. The last foray dealt with some hedging strategies involving options and inverse funds. This week I’m going to dig deeper into the options side of hedging and look at some of the various pricing models available for consideration. Then we’ll take the models for a spin and create ourselves a hypothetical situation and see how things play out.
Sunday, January 17, 2010
Dow Jones (YM, CBOT) Options Trade Alert / Stock-Markets / Options & Warrants
By: Patrice_V_Johnson
Welcome to The J.E.D.I. Way.
The J.E.D.I. Way will be buying the following call option on the MINI-SIZED DOW JONES (YM, CBOT) at the Market:
Read full article... Read full article...
Tuesday, December 29, 2009
Covered Calls Options Trading Strategy / Stock-Markets / Options & Warrants
By: Jay_DeVincentis
The basic covered call is a relatively simple strategy. The owner of a security sells the right to have their security purchased at a predetermined price in the future in return for money now. If the security price does not fall over the life of the option, the call writer will keep the premium collected when the call was sold. The call writer’s profit is limited in exchange for the premium.
Thursday, December 17, 2009
Crude Oil Super Down Trend, Options Play for Next Wave Down / Commodities / Options & Warrants
By: Matt_McKinney
This Article Focuses On Buying Bear Put Spreads in CRUDE OIL
MY ANALYSIS
Fundamentally, OPEC has raised it's demand outlook for the coming year possibly causing the recent bounce in price. This rally is very unimpressive to me allowing for an opportunity to buy puts.
Saturday, December 12, 2009
OPTIONS PLAY: CRUDE OIL Makes New Low For The Move / Stock-Markets / Options & Warrants
By: Matt_McKinney
CRUDE OIL has traded lower 7 out of the last 8 days. See my previous blog post for more details: http://mckinneytrading.blogspot.com/..
Read full article... Read full article...
Thursday, December 10, 2009
OPTIONS PLAY: COMEX SILVER Reaches Major Support / Commodities / Options & Warrants
By: Matt_McKinney
After this huge correction in COMEX SILVER it has touched MAJOR support.
Read full article... Read full article...
Thursday, November 19, 2009
The Dirty Little Secrets of Warrants, Options & LEAPS / Commodities / Options & Warrants
By: Dudley_Baker
With the gold bull market charging firmly ahead perhaps it is time to reflect upon what is actually happening from the perspective of the junior mining sector.
The first chart below is of the TSX Venture Index showing a great uptrend and looking very strong. The second chart shows us the TSX Venture Index relative to Gold. Wow, what a difference.
Read full article... Read full article...
Tuesday, September 22, 2009
Keep Your Options Open / InvestorEducation / Options & Warrants
By: Charles_Maley
While everyone has a right to his or her opinion, the people who are informed have more of a right - BILL DIXON
My experience is that most people who trade options do not do very well. A major reason is that most option traders don’t know how options are priced. Without having a basic understanding as to how they are priced, it’s difficult to understand how, and why, they will change in value. This makes formulating good trading strategies practically impossible.
Read full article... Read full article...
Sunday, September 20, 2009
This Week's Stock Market Trade: Gee, Let’s Buy GE Options / Stock-Markets / Options & Warrants
By: Peter_Navarro
Stock market trend: Up
Market Pulse - It always nice when the market geniuses catch up to one of your trades. Case in point is the action last week in GE call options and the follow-up article in this week’s Barron’s (“A Bullish Sign for GE). Back in late February just as the market was approaching its March low, I put indicated in the newsletter that I was stocking up on GE 2011 leaps.
Read full article... Read full article...
Wednesday, August 26, 2009
Options Implied Stock Prices Forward 30 Days Trend / Stock-Markets / Options & Warrants
By: Richard_Shaw
Options traders provide one community of opinions worth considering when evaluating short-term prospects for stocks. While they as a group could be totally wrong, they differ importantly from analysts and academics, because they are risking their money on their opinions.
Sunday, August 23, 2009
Current Stock Option Trading Ideas / Stock-Markets / Options & Warrants
By: Jay_DeVincentis
Liquidity Rush
We have options in DIA, GLD, MSFT, QQQQ, XRAY and 8 more designed to double your money with less than a 9% move in the underlying.
Wednesday, July 29, 2009
Some Commodity Related Securities Outpacing Gold 15:1 YTD / Commodities / Options & Warrants
By: Lorimer_Wilson
Where should we be investing what is left of our hard earned money these days? As the table below reveals having bought a basket of commodity related warrants with a minimum duration of at least 24 months at the beginning of 2009 would have been the right choice. Such warrants are up 111.9% YTD, up 12.8% in the past month and up 11.7% in just the last week. That is 14.7 times greater than the 7.6% YTD increase in gold, 13.3 times greater than the 8.4% increase in the S&P 500, 5.8 times greater than the 19.4% increase in the HUI and 4.8 times greater than the 23% YTD increase in silver. Read full article... Read full article...
Tuesday, July 28, 2009
Trading Eurodollar August 2009 Put Option Update / Interest-Rates / Options & Warrants
By: Patrice_V_Johnson
LONG-TERM TREND (> 1YR) OF THE MARKETS: DOWN
SHORTS LONGS _____________________
None August 2009 Eurodollar (Ticker Symbol: EDQ9)
Thursday, July 16, 2009
How to Profit From Stock Market Volatility / Stock-Markets / Options & Warrants
By: Q1_Publishing
“How can I make a lot of money in this market?”
That’s the question I wake up to every day. Sometimes it’s a real thinker, especially in bear markets. Other times, when there’s a genuine bull market, it’s a lot easier.
Read full article... Read full article...
Tuesday, June 23, 2009
Future Inflation Fears Fuel Price of Gold Shares and Warrants / Commodities / Options & Warrants
By: Lorimer_Wilson
The 2008 stock market meltdown brought panic and forced liquidation to all market sectors and especially junior resource shares (- 58.2% on average) and their associated warrants (-80.1%). Shares of companies that had a solid foundation for development, production and growth were unceremoniously dumped along with those more numerous juniors that had little more than hopes centered on grass roots exploration prospects. As a result of this indiscriminate selling – this throwing out the baby with the bath water – extraordinary opportunities have emerged creating once-in-a-lifetime values for discerning investors.
Wednesday, June 10, 2009
Why Gold Mining Stocks and Warrants are Up so Dramatically / Commodities / Options & Warrants
By: Lorimer_Wilson
Every investor has a wide array of asset classes and investment vehicles to consider – stocks; bonds; commodities; funds; options; LEAPS; etc. and the relatively unknown and misunderstood category called ‘warrants’. This article discusses the reasons behind the performance to date of commodity related company stocks (i.e. gold, silver and other metal miners and oil and gas operators) and their associated warrants vis-à-vis the aforementioned categories.
Friday, May 29, 2009
Leverage Potential of Many Metals & Mining Sector Warrants Unprecedented / Commodities / Options & Warrants
By: Lorimer_Wilson
Harold Clifford writes: Extraordinary Times Present Rare Opportunities - The 2008 once-in-a-lifetime general stock market meltdown brought panic and forced liquidationto all market sectors, and in particular pummeled junior mining share prices by 80 – 90% or more, creating once-in-a-lifetime values for discerning investors.
Monday, May 11, 2009
Warrants: The Devil is in the Details – A Follow-up / InvestorEducation / Options & Warrants
By: Lorimer_Wilson
This is the promised follow-up to my earlier article entitled “Warrants: The Devil is in the Detail” regarding the merit of my decision to forego buying a particular warrant at the time of issue. What can I say other than that I was dead wrong in my assessment of the buying opportunity it presented. It has turned out to be a ‘grand slam’ of an investment rather than the possible ‘bunt’ that I feared.
Tuesday, May 05, 2009
GM Shareholders Wipeout as Option Players Hold Gigantic Risk Reward "Put" Lottery Tickets / Companies / Options & Warrants
By: Mike_Shedlock
GM is preparing to do a 100-1 reverse split after issuing up to 60 billion new shares to pay down debt.
Please consider GM details plans to wipe out current shareholders.
Wednesday, April 22, 2009
Warrants: The Devil is in the Details / Commodities / Options & Warrants
By: Lorimer_Wilson
I was about to sing the praises of a new warrant that has just been issued by a Canadian gold mining company with producing mines in North, Central and South America and then I looked at the company’s prospectus – and now I am not so sure.
Tuesday, February 24, 2009
Write Covered Calls to Recoup Losses on Financial Stocks / Companies / Options & Warrants
By: Oxbury_Research
We've spoken in this space about Wells Fargo Bank and its (relative) virtues among the financials, and recommended buying WFC on a number of occasions through the autumn of 2008. Sadly, Wells did not escape the fate of the rest of the financials, though it held out somewhat longer (cold comfort for those of us still holding). And at this point, WFC has had its skin peeled and salted, recently falling over 50% in only three weeks! Read full article... Read full article...
Thursday, January 08, 2009
Confused About Warrants on Mining Stocks / InvestorEducation / Options & Warrants
By: Dudley_Baker
Warrants are being mentioned more and more in the traditional media as the U.S. Government has moved to receive warrants in connection with some of the bailout/rescue plans for the Big 3 auto manufactures and also with AIG back in September.
Warrants have a long history going back into the 1920's but the average investor has absolutely no idea what this investment vehicle is all about.
Read full article... Read full article...
Wednesday, November 12, 2008
Sell Put Options to Get Paid for Stocks You Want to Buy / InvestorEducation / Options & Warrants
By: Investment_U
Lee Lowell writes: Did you know that you could get paid to buy stocks at the price you want? That's right, someone will actually hand you cash today for your promise to buy any stock you want at a cheaper price than where it's currently trading.
All you have to do is decide which stock you want to buy, at what price you want to buy it, place the trade and collect your money.
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Friday, November 07, 2008
Warren Buffett Likes Warrants / Companies / Options & Warrants
By: Dudley_Baker
The legendary Warren Buffet is doing a great favor for investors by bring the investment term warrants back into the limelight.
Within the last 2 months Buffett has stepped in and assisted with an infusion of capital in Goldman Sachs of $5 billion and General Electric of $3 billion. In both of these transactions Buffett insisted/demanded/requested/required, that he also receive warrants. These warrants essentially are an equity kicker, an additional incentive or sweetener to get the deals done.
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Tuesday, October 21, 2008
Has the Steamroller Rolled Over Options Trading Programs? / Stock-Markets / Options & Warrants
By: Mack_Frankfurter
“In days of old, seers entered a trance state and then informed anxious seekers what kind of mood the gods were in, and whether this was an auspicious time to begin a journey, get married, or start a war. The prophets of Israel repaired to the desert and then returned to announce whether Yahweh was feeling benevolent or wrathful. Today The Market's fickle will is clarified by daily reports from Wall Street and other sensory organs of finance. Read full article... Read full article...
Tuesday, September 30, 2008
Warrants – The Fed and the U.S. Government / InvestorEducation / Options & Warrants
By: Dudley_Baker
Warrants have been frequently mentioned in the main stream news the last couple of weeks. Most recently warrants were being mentioned as a component in the failed $700 billion bailout plan. It is unlikely that most investors even know what warrants are, much less understand the financial implications and the benefits associated with warrants. So give us a few minutes and let us bring you up to speed.Read full article... Read full article...
Thursday, August 21, 2008
A Brief History of Common Stock Warrants / InvestorEducation / Options & Warrants
By: Dudley_Baker
Perhaps you have heard about warrants but have not taken the time to fully understand the potential which they can bring to your portfolio.
It's understandable for today there are so many different investment vehicles in which to invest. Most of our readers are interested in how to invest in the precious metals sector, so we have to consider, buying the gold and silver bullion, (if you can find it), mutual funds, ETF's (Exchange Traded Funds), mining shares, options, LEAPS, and warrants. All are great choices.
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Tuesday, May 27, 2008
Leverage Alternatives for Junior Mining Shares / Commodities / Options & Warrants
By: Dudley_Baker
Investing in the junior mining shares over the last year or two has been considered risky at best and perhaps insanity by some investors. So, why would we be looking for leverage on the junior mining sector when the shares and the mining indices are hardly keeping up with the price of the bullion, gold or silver? Why not just purchase gold or silver? The simple answer is that many analysts believe the juniors will eventually break out and greatly out perform (as they have historically) and will reward investors beyond their dreams. Currently, there are signs of a bottom forming and thus it is a great time to discuss different forms of leverage for those investors willing to take on slightly more risk than merely purchasing the junior mining shares.Read full article... Read full article...
Monday, May 12, 2008
Compound Stock Earnings Programs - Caveat Investor / InvestorEducation / Options & Warrants
By: Steve_Selengut
The caller seemed surprised that I had never heard about Compound Stock Earnings Programs, or CSEs. "People are earning three to six percent per month with little or no risk", she continued, "I'm thinking of attending a seminar". A wise man once said: "If it sounds too good to be true, it probably is", but this sure is a creative euphemism for what has to be a rather complicated options strategy.Read full article... Read full article...
Thursday, March 13, 2008
How to ‘Invest' In Precious Metals and Commodities with $5,000 to $10,000 / InvestorEducation / Options & Warrants
By: Dudley_Baker
There are many ways to invest in the precious metals and natural resource sector. Many analysts would first suggest investors purchase gold and silver bullion or coins, then focus on some of the larger capitalized mining companies (most of which are selling for over $35 per share). You might consider the GLD or the SLV, the Exchange Traded Funds for gold and silver currently selling for $96 and $197, respectively. Not all investors have the financial resources necessary to purchase these alternatives.Read full article... Read full article...
Saturday, March 01, 2008
Put Option Strategies to Protect Your Stocks Portfolio / InvestorEducation / Options & Warrants
By: Hans_Wagner
We all want to beat the market. The recent volatility in the markets is causing many investors to question if they should sell their favorite companies and wait for a better day. Others are just resigned to ride it out, believing in the buy and hold approach. After all that is what they have been told by their brokers, or read in various publications and books. So is there a way to hold on to the best companies and just buy some down side risk insurance to protect against potential losses. As it turns out you can have cake and eat it too. Buying put options that protect against a stocks decline offers just this type of insurance. Read full article... Read full article...
Thursday, February 14, 2008
Risk Management for Precious Metals Investors / Commodities / Options & Warrants
By: Dudley_Baker
As this bull market progresses forward in the precious metals and commodities sector, we should be ever mind full of the potential risks as we move higher. If you are saying what bull market? We understand. The junior mining shares have lagged greatly up till now and may continue to do so but we believe this situation will resolve itself soon with the juniors catching up and catching up very fast.Read full article... Read full article...
Tuesday, January 29, 2008
Trade Canadian Stocks & Warrants Online / InvestorEducation / Options & Warrants
By: Dudley_Baker
The prices of gold and silver have recently been hitting new highs with gold now over $900 an ounce and silver over $16.50 an ounce. Many investors, me included, had been looking for this rally to carry our mining shares to much higher prices. Unfortunately this has not happen and it is only normal to ask why? Virtually none of us have a reasonable explanation for this terrible market sentiment. Are investors fearful of a potential meltdown in the financial markets?Read full article... Read full article...
Thursday, January 03, 2008
Should Investors Use Warrants for Leverage in 2008 / InvestorEducation / Options & Warrants
By: Dudley_Baker
Are you still a non believer in this bull market in gold and silver? What an awesome beginning to 2008 with a gain of over $25 in the price of gold on the first day of trading for 2008 and as we write this piece, spot gold is at $859.00.. Probably even the talking heads at the popular TV channels are getting excited and soon we will have all investors joining ‘our' party, and what a party it will be.Read full article... Read full article...
Wednesday, January 02, 2008
Beat The Market By Using Call Covered Traded Options Strategies - Part 4 / InvestorEducation / Options & Warrants
By: Hans_Wagner
Investors who wish to beat the market using a conservative approach might want to consider using covered call option strategies to enhance their overall return. Writing covered calls helps to improve the total return of an investor's portfolio if they apply several important principles. Covered calls are approved for use in Individual Retirement Accounts as they are considered a conservative way to use options by the authorities. This is part four of a multi-part series on using options to enhance the performance of your portfolio performance. In Part 1 , we introduced covered calls and described the two primary categories that are important to understand. In Part 2 we introduced the Total Return Approach, as well as the risks, the potential return on investment and what strategy to use given your assessment of the situation. Part 3 we discussed some of the basic strategies to exit the position. Read full article... Read full article...
Friday, December 14, 2007
Beat The Market By Using Call Covered Traded Options Strategies - Part 3 / InvestorEducation / Options & Warrants
By: Hans_Wagner
Investors who wish to beat the market using a conservative approach might want to consider using covered call option strategies to enhance their overall return. Writing covered calls helps to improve the total return of an investor's portfolio if they apply several important principles. Covered calls are approved for use in Individual Retirement Accounts as they are considered a conservative way to use options by the authorities. This is part three of a multi-part series on using options to enhance the performance of your portfolio performance. In Part 1 , we introduced covered calls and described the two primary categories that are important to understand. In Part 2 we introduced the Total Return Approach, as well as the risks, the potential return on investment and what strategy to use given your assessment of the situation. There are several good books on options such as Options Made Easy: Your Guide to Profitable Trading (2nd Edition) by Guy Cohen. It is an easy read that will help you understand options. Read full article... Read full article...
Thursday, December 06, 2007
Beat The Market By Using Call Covered Traded Options Strategies - Part 2 / InvestorEducation / Options & Warrants
By: Hans_Wagner
Investors who wish to beat the market using a conservative approach might want to consider using covered call option strategies to enhance their overall return. Writing covered calls helps to improve the total return of an investor's portfolio if they apply several important principles. There are several strategies that an investor should consider when using covered call options. In Part 1 , we introduced covered calls and described the two primary categories that are important to understand. In Part 2 we will introduce the Total Return Approach, as well as the risks, the potential return on investment and what strategy to use given your assessment of the situation. This is part two of a multi-part series on using options to enhance the performance of your portfolio performance. Read full article... Read full article...
Thursday, November 29, 2007
Beat The Market By Using Call Covered Traded Options Strategies - Part 1 / InvestorEducation / Options & Warrants
By: Hans_Wagner
Investors who wish to beat the market using a conservative approach might want to consider using covered call option strategies to enhance their overall return. Writing covered calls helps to improve the total return of an investor's portfolio if they apply several important principles. Covered calls are approved for use in Individual Retirement Accounts as they are considered a conservative way to use options by the authorities. This is part one of a multi-part series on using options to enhance the performance of your portfolio performance. If you are interested in learning more about options Options Made Easy: Your Guide to Profitable Trading (2nd Edition) by Guy Cohen is an easy read that will help investors understand options. Read full article... Read full article...
Wednesday, November 14, 2007
Understanding Warrants / InvestorEducation / Options & Warrants
By: Dudley_Baker
Did you know that warrants have been in existence for many decades but very few investors know about them? Why? Unfortunately, very few of the professional newsletter writers and analysts understand them so they do not write about them. Are warrants that difficult to understand? Of course not; it's just that one needs to take some time to learn and understand this incredible investment vehicle.Read full article... Read full article...
Tuesday, September 25, 2007
Adam Hamilton on Options, LEAPS and Warrants / Stock-Markets / Options & Warrants
By: Dudley_Baker
In the July issue of Zeal Intelligence , Adam Hamilton focused on alternative methods for investing in the mining shares. His subscribers were presented with more trading tools in building their portfolios in addition to purchasing the common shares. He discussed the long awaited Market Vector Gold Miners ETF (GDX) which launched in May 2006 and additionally, he discussed in depth, options, LEAPS and warrants.Read full article... Read full article...
Tuesday, September 11, 2007
How To Use Leverage Wisely / InvestorEducation / Options & Warrants
By: Dudley_Baker
Based on the recent action in the price of gold we have to believe that it has once again broken out to the upside and ready to run. Last week, Richard Russell presented us an excerpt from his service titled, The Box, in which he is using the point and figure method of plotting gold. The basis of the article was that if gold could close at $690 an ounce, it would be a bullish breakout. Well, guess what? It did, it has and no doubt (in our mind) will continue much higher in the coming weeks and months eventually taking out the old highs in the upper $800's. The question always for investors is what do we do? How to maximize our gains and should we use leverage?Read full article... Read full article...
Wednesday, July 18, 2007
Options: A Three Dimensional Chess Game / InvestorEducation / Options & Warrants
By: Mack_Frankfurter
"Could we look into the head of a Chess player, we should see there a whole world of feelings, images, ideas, emotion and passion." -- Alfred Binet (French Physiologist, 1857-1911)
One of my favorite pastimes is playing chess, which unfortunately I have not had the time to indulge as of late. To experience the full brunt and emotional psychology of the game try a five minute speed match against a chess hustler in Washington Square Park NYC, a mecca in the chess world. Some of those guys are FIDE rated 2200+ and you will likely walk away feeling beat-up.
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Tuesday, July 10, 2007
Commodities, Stocks & Warrants / Commodities / Options & Warrants
By: Dudley_Baker
Is there any doubt that we are in the mist of a bull market in the commodities sector, especially for natural resources? The expert analysts we follow believe this bull market will last another
15 to 20 years. The purpose of this article is not to convince you of the existence of the bull market but rather to discuss the different investment strategies that investors can use to accomplish their objectives.
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Monday, May 21, 2007
Should Warrants – Warrant Investor Attention? / InvestorEducation / Options & Warrants
By: Dudley_Baker
Many investors are excited about the prospects of a rip-roaring bull market in the precious metals sector and are presented with a variety of investment vehicles with varying degrees of risk and leverage and advice on how to invest accordingly.Read full article... Read full article...
Thursday, March 22, 2007
Managing Risk with Warrants, Options & Leaps / InvestorEducation / Options & Warrants
By: Dudley_Baker
Regardless of what the markets are currently doing, now, more than ever is the time to take action to protect your portfolio.
Over the last few weeks investors have been very very surprised at the performance of virtually all of the markets with the big initial shock coming from the 9% decline in the Shanghai markets overnight. Many analysts have had some great insight into what the problems are, the effects of them and how investors should approach the markets. Unfortunately, we have many different opinions from these analysts. While differing opinions are great to read it can and does create much doubt in the mind of the average investor. This is truly a time that you, the investor, must firmly believe in your investment philosophy or at a minimum attempt to protect yourself in the event you are wrong.
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