Options Trading
Technical Analysis: What A Trend Change Really Means
The S&P 500 had a great run this summer. Over a three month period from June 4th to September 15th, the large cap index shot up 16%. During that time, the S&P set a series of higher highs and higher lows. And it established a strong uptrend. But what a difference a few weeks can […]
A Simple Option Strategy To Profit From Weak 3rd Quarter Earnings
Third quarter earnings season hits full stride this week. Eight-two of the S&P 500 companies and 12 of the 30 Dow Jones stocks report earnings in the next five days. Unfortunately, this is expected to be the worst quarter for earnings since 2009. Analysts are forecasting S&P 500 earnings per share growth of -1.7% and […]
The Spread Trader: Bull Call Spread On Caterpillar (CAT)
So far the Fed’s latest action hasn’t made a big impact on stock prices. In fact, the markets have been trending modestly lower after an initial surge higher in the first days following the announcement of QE3. What’s behind the markets’ sluggish performance? Put simply, weak economic data. Despite the introduction of QE3, economic data […]
Sectors To Watch: Cash In On QE3 With Basic Materials!
Last week, Fed Chairman Ben Bernanke unleashed a third round of quantitative easing (QE3) on the US economy. The move by the central bank wasn’t unexpected. However, the magnitude of the plan has reignited investors’ animal spirits. And for good reason… the first two versions of QE had specific dollar amounts and time limits. But […]
The Spread Trader: Bull Call Spread On CBS Corp (CBS)
Fall is here. It’s a beautiful time of year here in Arizona. The temperatures are falling and it’s once again tolerable to be outside… at least without a pool or some kind of air conditioning. But it’s also a great time of year to be a couch potato. Especially, if you’re into sports or politics. […]
Call Options Or Put Options On GasLog (GLOG)?
GasLog (GLOG) owns and operates a fleet of liquefied natural gas (LNG) carriers. GLOG has two wholly-owned carriers in operation with eight more on the way. They also operate and manage eleven other LNG carriers. GLOG currently trades for $11.17 per share. The shares are up 27% from the 52-week low of $8.76. However, the […]
Sectors To Watch: Who Pulled The Plug On Utility Stocks?
Dividend paying stocks have been the hottest area of the market lately. And for good reason… Economic growth is sputtering and interest rates are next to nothing. Investors who want to earn a decent return on their investment see high quality dividend paying stocks as their best option. You see, high quality dividend paying stocks […]
Generate Income Without Dividends
Income investors have been left out in the cold by the Fed. Risk-free assets like government bonds or FDIC insured savings accounts and CDs hardly pay anything these days. And they certainly don’t keep pace with inflation. You simply must be willing to take on risk in order to generate income today. This phenomenon has […]
Investing In Options: Put Time On Your Side
As you already know, there are four major variables in determining an option’s price – stock price, strike price, time, and volatility. One of the most puzzling aspects of option trading for new option traders is time value premium decay. For instance, I’ve heard from many novice option traders who were shocked to see the […]
The Spread Trader: Bull Call Spread On ConocoPhillips (COP)
As you know, we’re well into the dog days of summer. It’s the time of year when people from all walks of life head for the beaches and take their last minute summer vacations. And Wall Streeters are no exception. Right now, many traders, institutional investors, and hedgies are away from their usual Wall Street […]
