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 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…

Facebook Stock (FB): Bearish Short-Term, Bullish Long-Term

The FANG stocks (tickers FB, AMZN, NFLX, GOOGL) have lost their bite since the election, but they may be getting ready to bounce back. Facebook (NASDAQ:FB) has been particularly hard hit due to issues surrounding fake news items showing up in users news feeds. Some users also reported a bug…

IWM Russell 2000 Options Trade Review: Short-Strangle

Last week I posted a Case Study looking at a couple of Short Strangle options plays with IWM. The idea behind the case study was to see how the trades would perform and follow their progress. Again, this was with the iShares Russell 2000 ETF (NYSEARCA:IWM). After such a strong rally following…

S&P 500 Bearish Divergence Raises Intermediate Term Risks

As most active investors are aware, the S&P 500 (INDEXSP:.INX) has traded in a tight range over the past several weeks. Recently, stocks have touched the lower part of that range, testing the late summer breakout. But there are a couple of interesting developments that are worth monitoring for both…

Gold Trading Update (GLD): Prepare For More Volatility

Gold has been pummelled in the last few days and things don’t look like easing up any time soon. Taking a look at the chart of the SPDR Gold Shares (NYSEARCA:GLD), let’s see if we can see where the this Gold ETF might find some support. Gold ETF (GLD) Technicals…

VIX Volatility Index: Reversal May Hint At A Market Bottom

It seems the term Fear Index gets thrown around a lot these days, but what do people actually mean by that? Most people are referring to the VIX Index which is a market volatility index created by the Chicago Board Options Exchange (CBOE) that reflects the markets expectations for volatility over the next 30…