Posts From Gavin McMaster

Gavin McMaster

Gavin has a Masters in Applied Finance and Investment. He specializes
in income trading using options, is very conservative in his style and
believes patience in waiting for the best setups is the key to
successful trading. He likes to focus on short volatility strategies.
Gavin has written 4 books on options trading, 3 of which were
bestsellers.


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Options Education: How To Trade Put Ratio Spreads

The put ratio spread is generally considered a neutral options trading strategy, although it has the ability to make a profit in up, down and sideways markets.  For more, check out my ultimate guide to trading Put Ratio Spreads. Yes, it can make money no matter which way the market…

Is The Russell 2000 About To Break Out To New Highs?

Volatility has been eerily absent from the market lately with the ViX Volatility Index (INDEXCBOE:VIX) trading at levels not seen since 2017. Short volatility has certainly been the number one game in town so far this year.  For Iron condor traders, particularly those that trade the Russell 2000 (INDEXRUSSELL:RUT,), 2017…

Volatility Traders Betting On Higher VIX Via Call Spreads

Traders are always asking me how to trade volatility. Short volatility has certainly been the way to go this year with VIX Short-Term Futures (NYSEARCA:VXX) down 43%, Ultra VIX Short-Term Futures (NYSEARCA:UVXY) down 70% and Short VIX Volatility (NYSEARCA:SVXY) up 65%.  Truly amazing returns in anyone’s language. Over the weekend…

Is A Bull Market In Volatility (VIX) Nearing?

Over the weekend, I read an article arguing that we are potentially about to enter a bull market in volatility – see VIX Volatility Index chart below for reference (INDEXCBOE:VIX). The writers argument was that we have had an extended period of low volatility since 2012, similar to what we…

Lumentum Stock (LITE): Playing The Pullback With Options

Michael Lamothe from Chart Your Trade recently posted a chart that caught my eye. The stock is Lumentum Holdings (NASDAQ:LITE) and to be honest, I’ve never looked at it before. But the chart really grabbed my attention. I’ll preface this by saying that I haven’t followed the company, so I…

Verizon (VZ) Stock Options Strategy For Cautious Investors

Verizon has taken a beating lately having dropped from $54.80 down to $48.40, a decline of 11.7%. Verizon has long been a favorite for dividend hunters and this recent decline has seen the yield on the stock rise to 4.7%. That is sure to attract some interest shortly. Dividends have…

Options Trading: Using Covered Calls To Increase Yield

When starting out with options, a natural place to begin is with covered calls. It’s a very easy to understand strategy for those that are familiar with stock ownership. The strategy involves buying a stock (if you don’t already own it) in lots of 100 shares. The total size will…

Don’t Expect This Low Volatility To Last Forever

Market volatility may be ready to rise over the near-term.  And this could make navigating the stock market a bit more interesting over the coming days/weeks. Today I’d like to highlight why this may be while while showing some ways to trade it with options. Long Strangles are my favorite way to…

Crude Oil Trends Say Opportunity Still Exists In January

Crude Oil (USO) Offers Big Potential Return Over Short-Term for Bullish Traders Crude oil has had a crazy ride since late 2015, when it dropped around 45% before regaining all of that loss in the first 6 months of 2016. In the back half of 2016, crude chopped around a…