Options

Dogs Of The Dow 2015 Performance Update

Earlier this year, I published a post on the Dogs of the Dow and trading off that theory. Given that we are fast approaching the mid point of 2015, I thought it would be a good time to provide a Dogs of the Dow 2015 performance update. Here’s a quick reminder about which stocks within the Dow Jones Industrial Average (DJIA) fall into this group: “The Dogs of the Dow is an investing

Unusual Options Activity: KORS, LUV, GE, And More

I hope you all enjoyed the long weekend. It’s time to get ready for the shortened market week. As we do each week, let’s review some 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 my weekly recap of 10 stocks that saw unusual

3 Trading Ideas For Twitter (TWTR) Over The Short-Term

Twitter Inc. (TWTR) closed at $36.60 on Friday. So sellers of the May 22nd 37 cash-secured puts are now long the stock, which I discussed on May 19th. The $0.39 premium earned makes it an effective long at $36.61. So what’s next? Here are a few options for how I would approach trading Twitter. 1.  Stay put.  The stock has taken a 29-percent pounding in the wake of 1Q15 earnings. Management

Twitter (TWTR) Options Trading Idea: A Cash Secured Put

Not much has changed fundamentally since we last discussed Twitter stock (TWTR). That was Monday last week. Except President Obama has his own Twitter account now. In the past week, Twitter earnings estimates for the second and third quarters have remained unchanged at five and six cents respectively, as have for 2015 and 2016, at $0.34 and $0.67, in that order. The stock is still trying to digest the earnings-induced

Trading Idea: Cash Secured Put On TLT (20+ Treasury Bond ETF)

It is an understatement to say that trading in Treasury bonds was volatile – just check out the action on various yields last week. From intra-day low to high, the 10-year yield swung 20 basis points, but closed out the week essentially unchanged – trading down one basis point, to 2.14 percent. The 30-year had a range of 19 basis points, but rose two basis points, to 2.92 percent. Bonds

Unusual Options Activity: KO, XLF, QCOM, 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 (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 my weekly recap of 10 stocks that saw unusual options activity and what, if any, significance these trades may have. Unusual Options Activity: 10

Top Trading Links: A Big Move Is Coming

You know that college football game where the underdog hangs with the highly ranked opponent until midway through the third quarter before the better team physically overpowers them and pulls away? That’s what this market feels like. Bulls are just running the ball and taking the fight out of the bears. Interestingly the tone of the blogosphere hasn’t been so positive. Lots of great investing research and trading ideas in

Options Ideas: Trading The Honeywell Stock (HON) Breakout

On April 17th, Honeywell International (HON) reported Q1 earnings per share of $1.41 vs the Wall Street consensus estimate of $1.39 on revenue of $9.21B vs the $9.50B estimate. This was down 4.8% year over year, but the $83B industrial conglomerate saw margins tick higher by 220 basis points to 18.7%. Honeywell pays a nice dividend of just under 2 percent. Also notable is that CEO David Cote has said that

Spirit AeroSystems Stock (SPR): The Rally May Not Be Over

Spirit AeroSystems Stock price Soared To New Highs, But The Rally May Not Be Over Yet Unusual Options Activity From March 11th – March 30th, 12,000+ July $55 calls were purchased for $1.00-$1.55 in this $7.6B aircraft parts manufacturer. This is significant in that total call open interest is 19,303 contracts (July $55 calls account for 83%) vs total put open interest of 1,675 contracts. Fundamental Overview On April 29th,