Options

2 Trade Ideas Amidst The Stock Market Whipsaw: $CAT $CINF

Trading in the equity markets has become increasingly more difficult since last summer, ending a series of buying opportunities with deeper corrections in the stock market and more volatility for stocks. While the easy money has been made in the latest bull market, there still remains opportunity for investors on the long side…

Why Investors Must Adapt To A Changing Market Environment

The Big Picture – A Changing Market Environment Markets are constantly changing and and understanding a changing market environment is essential for long term success. In 2009 the U.S. Equity markets and most risky asset classes were coming off of a pretty bad year. 2008 was not kind to the…

Progressive Insurance $PGR Bullish Trading Setup After Q4 Earnings

Known for their flamboyant spokeswoman Flo and innovative features such as “Snapshot”, Progressive Insurance has transformed into one of the largest car insurers in the United States over the last eight decades. On January 27th, the Progressive Corp (PGR) topped fourth quarter earnings estimates by $0.06 per share. Net premiums…

Options Traders Position For Return Of Market Volatility

One of the most important takeaways from tracking options trading flow on a daily basis is finding important themes in a days, or week’s activity. Often this is seen when a number of names in a certain sector are seeing bullish/bearish flow, trader’s position in the options market well ahead…

Weekend Market Commentary: Volatility And Price Tell The Story

The Big Picture: Move along everyone, there’s nothing to see here… As someone who follows the markets constantly, it’s interesting to see how the Twitter stream, blog comments, and website traffic react to down moves and shifts in volatility. When the market is moving steadily lower, things seem to quiet…

How To Increase Your Probability of Success Trading Options

Put 75%+ Odds In Your Favor – How To Increase Your Probability of Success Trading Options One of the biggest challenges newer traders face is finding a style that “feels right.” For many traders, the process can take a while to sort out and seem discouraging at times. A common progression…

S&P 500 Weekly Update: Just A Bounce In A Downtrend?

We are dealing with many of the same themes, so my plan is to keep this week’s S&P 500 weekly update short and to the point. Feel free to go back and read last week’s update for more color. In short, not very much has changed except for the counter-trend rally attempt. We…

Options Strategy Of The Week: Massive Risk Reversal In $XLE

Option Strategy of the Week: Massive Risk Reversal in Energy ETF (XLE) Sets up Great Risk/Reward A massive trade observed today in the Energy ETF (XLE) with the June $61.50 calls being bought to open in a range from $1.81 to $2.03 and the June $45 puts being sold to…

Stocks Catch A Bid But Divergence In Volatility Persists

For the past two weeks, we have been discussing a divergence in Volatility. Specifically, the observation is that the move lower for the stock market in 2016 has not been met with an explosion in volatility. For reference, here are the links to those posts: Weekend Commentary 1/15/16 Weekend Commentary 1/8/16…