Options Trading
How The Heck Do You Trade Oil?
One of the biggest surprises in the financial markets in 2014 has been the collapse of crude oil prices. In mid-June, West Texas Crude was trading at over $105 a barrel. Barely five months later, the price has dropped below $75. Oil hasn’t been this cheap since 2010. The mind-boggling plunge has caught many investors […]
Two Years Of Gridlock?
The big news to kick off November is neither economic nor international for a change, it’s political. The Republicans had an impressive showing at the polls, with the GOP taking control of Congress starting in 2015. Although the outcome was basically expected, it’s the first time in eight years Republicans will have the majority in […]
How To Profit Off Of Bad Earnings
It’s earning season, so you know what that means… lots of big moves in individual equities. And this time around, there’s added volatility in the market due to the recent selloff. It seems like earnings misses are causing larger than normal downward gaps. As options traders, we know big moves can be very good if […]
How Scared Are You?
October is Halloween month, so it seems like everywhere you go you see spooky decorations and references to all that is scary. It’s fitting then, investors appear to be really spooked by the markets these days. Volatility has crept back into the stock market in full force. This week, the major indices have been hit […]
Is A Selloff Coming?
After last week’s relatively steep selloff in equities, investors are becoming concerned a larger pullback is in the works. After all, it’s only natural when the selling starts to assume more is on the way. But what are the options markets telling us? Keep in mind, the smart money often likes to use options rather […]
Why Is Wall Street Not Talking More About Options Trading?
There’s no denying the popularity of options trading these days. Just go to a bookstore (if they still exist in your neighborhood) and see how many books there are on options. Or, do a Google search and check out how many newsletters and services are based on options trading. The fact is, options trading has […]
VXX Stock – Everything You Need To Know (Part 1)
With the explosion in popularity of volatility products, both for options traders and investors in general, it’s a good idea to have a solid understanding of what’s out there. As you may realize, the single most important volatility benchmark is the VIX (CBOE’s S&P 500 volatility index). However, the VIX itself isn’t tradable. That’s where […]
Are Interest Rates Going Higher Sooner Than Expected?
After closely watching geopolitical events play out, the focus of many investors has shifted to the Fed and interest rates. Between the most recent Fed Meeting notes being released and the conference in Jackson Hole, there’s been ample opportunity for Fed watchers to (attempt to) glean information about the future of interest rates. However, Yellen’s […]
Should You Trade Commodity Options?
The vast majority of my articles focus on trading equities options and equity index options. Of course, those are the most popular options, so it makes sense. However, let’s not forget about commodity options. First off, when trading commodity options, I recommend only trading options on commodity ETFs. Yes, options do trade on commodity futures. […]
Call Options Or Put Options On Twitter (TWTR)?
Micro-blogging giant Twitter (TWTR) has mostly had a rough go so far in 2014. However, the company’s fortunes may be changing after its most recent earnings report. TWTR shares are currently trading at $45.19, up 17% for the week. The stock is trading 40% below the 52-week high of $74.73 and is 53% above the […]
