Options

Bullish On Apple? This Options Trade Could Net 43% In 16 Days

Apple’s stock (AAPL) is currently 8% below the high set in late November and bullish traders can set up a nice short-term AAPL options trade using a bull put spread. If a trader believed the recent low of $106 will hold, they could use the $106 strike as the short put and the $104 strike as the long put. Currently, this AAPL options trade offers a roughly 43% return on

Top Trading Links: Navigating The Market Volatility

The focus for this week’s “Top Trading Links” is the changing market landscape and improving our trade craft. A different market environment has developed and navigating our trades (and setups) has become more difficult by the week. Hopefully a few of these reads can help guide us through the influx of market volatility that has emerged. Market Insights @kimblecharting notes how the recent signals in copper and crude oil suggest a

S&P 500 Update: What’s The VIX Telling Investors Now?

During my typical S&P 500 update, I tend to focus on technical support and resistance levels to watch. But rather than focusing on key price levels, I’d like to focus on the S&P 500’s relationship with the Volatility Index (VIX) and what it may be saying (I’ll cover some levels to watch at the end). The VIX has long been followed as a fear index, gauging whether or not investors

Using A Broken Wing Butterfly To Play Potential RUT Breakout

Small caps have been getting a lot of attention in the last few months, and particularly the last week or so as they bump up against strong resistance levels. In the chart below, you can see that the 1210-1215 area has signaled the death knell for prior rallies. However, this time, small caps are setting up with a much better chance of breaking that level. And as I’ll get to,

SPX Offers Potential 39% Return For Bearish Traders

The S&P 500 (SPX) has taken a bit of a beating recently and (so far at least) Santa Claus has not come to town. One trading opportunity for those traders with a bearish bias over the next week or so is a Bear Call Spread using the 2000 strike as the short call and the 2025 strike as the long call. As of Tuesday’s close, this trade offered a roughly

The Best Of See It Market – November 2014

November was a great month for See It Market. We added 3 fantastic contributors (Ben Carlson, Dave Budge, and Jonathan Beck) and saw our output jump by 20 percent and our traffic by over 30 percent. Thank you to our contributors:  We have such a great team of active investors providing boots on the ground insights and high quality research. I hope you will take a few moments to review some

Is Netflix Stock (NFLX) Ready To Explode Again?

Netflix stock has long been a favorite with option traders due to its high stock price, high implied volatility and explosive stock moves. But following the severe selloff in mid-October, Netflix (NFLX) has been very subdued. Since October 23rd, Netflix stock as traded in a very tight range between $374.60 and $395.52. That’s only a range of 5.5% in the last month for a stock that has a history of moving

The Best Of ‘See It Market’ – October 2014

Yup, October was a wild month. And we were all over the action… even before it started. Fellow SIM contributor Ryan Detrick’s September 29th post on “Why October May Be A Roller Coaster Ride” gave readers a glimpse of what was to come. And it was all that and more. From the mid-month lows to the end of month highs, the market jumped over 10 percent (in two weeks). If you haven’t

Market Masters: How To Manage An Iron Condor Trade

For many professional option traders, iron condors form the basis of how they generate monthly income. Iron condors are a strategy that allows you to profit from sideways moving stocks, but they can also profit if the stock experiences slightly higher or slightly lower prices over the course of the trade. Where beginners get in to trouble is when a stock makes a big move in either direction shortly after