Options Trading
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 […]
What Was The Fed Thinking?
Ever since interest rates hit zero, we’ve come to expect consistent, mostly boring talk out of the Fed. The central bank has pledged to keep rates low for the foreseeable future. And, quantitative easing is slowly winding down. There’s not a whole Yellen and the Fed could say or do at this point that hasn’t […]
IYR, HES Options – Unusual Trading Activity – July 11, 2014
This week we’re taking a look at unusual options trading activity in iShares Dow Jones US Real Estate (IYR) and Hess (HES). As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term. This is something professional options traders […]
Is The Latest Hot IPO Worth Investing In?
It’s been awhile since we’ve had a buzz-worthy IPO to discuss. Lately, IPO hype has been pretty sparse. After a big year for initial public offerings in 2013, the somewhat less bullish environment this year seems to have discouraged big name IPOs from moving forward. However, IPOs may be back en vogue after GoPro’s (GPRO) […]
