Options

Unusual Options Activity: CHK, COP, HLT, TWTR, And More

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options Activity: 10 Stocks With Notable

What’s Next For The VIX? Checking In On The Volatility Index

Of late, volatility has been volatile. In the past month, the Volatility Index (VIX) has done a complete round trip – surging 68 percent in 11 sessions and then giving it all back in the next eight. As the fear premium related to Greece and Chinese stocks came out, there was less need to buy protection – at least this is the impression one gets looking at how market participants

Options Trading: Strategies For Staying Short XLY

Hindsight is always 20/20. Back on June 1 when I hypothetically wrote a June 5th weekly 76.50 naked call on the SPDR Consumer Discretionary ETF (XLY), it turned out to be a dud trade. The idea was to generate income, but it ended up effectively going short at $76.97. Last Friday, the ETF closed at $79.15. If held, the trade would be $2.18 under water. Enter the magic of options.

Unusual Options Activity: RAD, RIG, TWTR, TXN, And More

It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (or who is making them), I believe that it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options

Using VXX Spikes To Generate Equity Buy Signals

The VXX Short-Term Volatility Futures ETF has been much maligned since its launch and one glance at the chart below shows why – it’s a poor way to hedge an equity portfolio. Despite the continued underperformance and value erosion (due largely to the cost of rolling front-month VIX futures), it remains one of the most liquid and highly traded volatility assets by both institutional and retail traders. VXX Weekly Chart

Options Strategy: Short Collar On Consumer ETF (XLY)

The SPDR Consumer Discretionary ETF (XLY) finds itself at a crucial juncture. And those that are short likely have some decisions to make, especially with the market looking up today. Heading into today, over the past 12 sessions XLY has made a high of $78.31 and a low of $76.14. And last Friday, it rallied 1.5 percent to close at $77.67. In the process, it is once again sitting right underneath

Unusual Options Activity: JPM, SNDK, CONN, NAV, And More

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options Activity: 10 Stocks With Notable

Market Update: The VIX Creeps As Investors Fight Capitulation

Yes, the market is oversold and due for a bounce. But at the same time, the market is having trouble holding a bid. And the Volatility Index (VIX) is creeping higher. Let’s recap:  On Tuesday the S&P 500 saw a big reversal higher. But much of those gains were given back on Wednesday. And today we opened higher, only to see stocks sell off throughout the day. Couple this weakness

Options Trading Idea: Short Put On Consumer Stocks ETF (XLY)

The SPDR Consumer Discretionary ETF (XLY) dropped 0.9 percent last week, to $77.20, and looks poised to come under pressure medium-term. On a weekly chart, there have been back-to-back doji candles – as well as in four of the past five weeks. On a monthly chart, March through June produced additional dojis. Bulls and bears are battling it out on this consumer stocks ETF. Two weeks ago, the ETF broke

Unusual Options Activity: DAL, P, X, CVS, And More

It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (or who is making them), I believe that it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options