Options

S&P 500: The Implications Of CBOE Implied Correlations

As the recent selloff in the S&P 500 (INDEXSP:.INX) looks to be over before it really even got started, I thought it would be worth highlighting an interesting, if unusual, indicator that has potential use in market timing for the S&P 500. It is the “CBOE Implied Correlation Index” –…

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…

The Gold Market Is Getting Complacent: Watch This Chart!

A little too quiet for Gold… Gold came to my attention for a couple of reasons this week. First was the sentiment signals in the latest sentix survey – I tweeted the chart here.  Second I decided to feature it in the latest edition of the Tuesday Macro Technicals report. 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…