High Volatility

Trading The Next Tesla

Trading The Next Tesla

One of the more exciting stocks for options traders to trade on is Tesla (TSLA). The electric car and battery company has been volatile basically since its inception. That makes for excellent opportunities for options traders, but also a fair amount of risk. TSLA is essentially a cult stock. There are some investors who love […]

Trade of the Week: HTZ

Trade of the Week: HTZ

Hertz Global (HTZ) declared bankruptcy and received a delisting notice for its stock last week. Nevertheless, the options activity on HTZ has been through the roof. It seems day traders are enjoying the action with both calls and puts trading briskly. One day last week, over 440,000 options traded in HTZ, mostly in small-lot trades. […]

Is There Finally a Cheaper Alternative to the VIX?

Is There Finally a Cheaper Alternative to the VIX?

When it comes to trading volatility, The VIX has long held the crown as the most viable product on the market. Products based on the VIX, the S&P 500 Implied Volatility Index, have been one of the most notable additions to the trading universe in the 21st century. In fact, the Cboe Global Markets (BATS: […]

Buy These 3 High-Yield Stocks to Survive the Bear Market

Buy These 3 High-Yield Stocks to Survive the Bear Market

Last week the Federal Reserve Board announced the expected 0.25% increase in the Fed Funds interest rate. Despite doing the expected, the stock market swung from a 1.5% gain for the day to down as much as 2.5%. That’s an 800 point swing by the Dow Jones Industrial Average. Bloomberg noted “…no matter what the […]

Earn Income While Hedging Against Market Uncertainty

Earn Income While Hedging Against Market Uncertainty

Covered calls are quite possibly the best investment strategy on the planet. How many other strategies lower risk, provide income, and potentially allow for capital growth? There’s reason why so many fund manager employ covered calls as a cornerstone of their trading plans. What can be surprising to many covered call traders (new and experienced […]

A Cheap Way To Hedge Against Higher Volatility

A Cheap Way To Hedge Against Higher Volatility

One of the great things about options is how flexible they can be. Traders can mix and match options contracts to custom create strategies which suit their needs. It’s a particularly valuable feature for precisely defining the amount of risk a strategy can have. Being able to define risk (i.e. decide how much you are […]

A Quick Way to Hedge Your Portfolio Into The New Year

A Quick Way to Hedge Your Portfolio Into The New Year

Despite the volatility and heavy stock selling in October, many analysts are expecting the remainder of 2018 to be bullish. The S&P 500 was only up 3% year-to-date after the October bloodbath (prior to mid-term elections), so it stands to reason that stocks are more likely to go up in the final two months of […]