Options

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…

10 Stocks With Unusual Options Activity (JWN, BBRY, JBLU, & more)

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 a weekly recap of 10 stocks that…

Unusual Options Activity Report: TSO, AMD, DAL, & More

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 a weekly recap of 10 stocks that…

Higher Volatility Ahead For Stocks? This Ratio Says So

One of the great things about being a technician is the ability to constantly explore new charts and look at markets from all angles. The Volatility Index (VIX) has gotten a lot of attention lately as it gets to historically low levels. Charlie Bilello, CMT  pointed out that the VIX…

Are Traders Over-Confident That Santa Is Coming To Town?

We’ve covered the term structure of stock volatility indices on several occasions. This, again, refers to the relationship between the various durations, e.g., 8-day, 1-month, 3-month, represented by these indices.  Today, we’ll look at the relationship between the 1-month Volatility Index (INDEXCBOE:VIX) and the 3-month Volatility Index (INDEXCBOE:VXV) The concept…

Unusual Options Activity: 10 Stocks To Watch (December 19)

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 a weekly recap of 10 stocks that…

Apple Stock Options Case Study (AAPL): Winners & Losers

How Patience Turned Apple (NASDAQ:AAPL) Into An Options Winner Apple has under-performed its mega cap tech rivals like Google (NASDAQ:GOOGL), Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN). Here’s a quick comparsion chart: Apple’s stock has been tied to the success of the iPhone, and the product has gone through its cycle of ups…