Options

Protecting Against Downside Risk As Retail Stock Report Earnings

Protecting Against Downside Risk As Retail Stock Report Earnings

The increase in market volatility the past couple weeks is helping to reawaken interest in hedging with options. More specifically, I’m seeing a lot more downside protection trades in the options market than before the correction at the beginning of February. Investors have quickly remembered that stocks can move really fast when things get hairy. […]

How to Earn 200% Trading Volatility

How to Earn 200% Trading Volatility

For options traders, the recent massive spike in volatility has mostly been a welcome change. It’s much easier to trade options for profit when volatility is high – assuming it comes back down at some point. This past week has been a near ideal environment for options traders, especially those who like to sell options. […]

How To Make Money On The Huge Spike In Volatility

How To Make Money On The Huge Spike In Volatility

What a difference a week makes. That’s both the beauty and danger of the financial markets. They largely generate wealth over time, but will occasionally remind you that they can take it all away at any time. At the time of this writing, the S&P 500 had dropped 10% from its highs, which puts the […]

Make Over 200% On This Volatility Trade Nobody Expected

Make Over 200% On This Volatility Trade Nobody Expected

There’s a famous Monty Python skit from the 70’s where, out of nowhere, three men dressed up like medieval Catholic priests jump into a room shouting “Nobody expects the Spanish Inquisition!”. Of course it was very much in line with the sort of random and absurd humor Monty Python is famous for. I tend to […]

A lot of cash US dollars.

A Big Bank Trade Moving Into Earnings

As an options trader, earnings season is often one of the most enjoyable times to trade. During the heavy earnings periods, you often see plenty of large moves in individual stocks (for obvious reasons). Options can be a good way to capitalize off those big moves. However, the biggest challenge with using options for earnings […]

How to Trade Bonds to Make up to 200%

How to Trade Bonds to Make up to 200%

Most people think bonds are boring. And it’s true, if you buy a bond and just wait for the coupon payment to arrive, it is definitely an uneventful investment… boring and safe. Of course, that’s exactly why people buy bonds. However, trading bonds is a completely different matter. Bonds, even government bonds, can move as […]

Make 100% Or More On This Next Big Market Trend

Make 100% Or More On This Next Big Market Trend

One of the early financial market themes for 2018 is the renewed interest in commodities.  We’ve seen early gains so far in gold, oil, and natural gas, to name a few.  At least one of the drivers behind the buying is the expected increase in interest rates. As a reminder, commodities are usually priced in […]

This Energy Trade Could Post Triple-Digit Gains

This Energy Trade Could Post Triple-Digit Gains

Investors often try to figure out themes in the financial markets once a new trading year hits.  2017 was all about low volatility, cryptocurrencies, and tax reform.  With tax reform out of the way, we still have low volatility and cryptocurrencies/blockchain tech on the board.  What else could be in store? Obviously, the jury’s still […]

Crumpled $ 100 bank note close-up in hand over $ 100 bills on a wooden background.

This Surprise Stock Could Make You Big Bucks

It’s no secret that options are often the investment vehicle of choice for “smart money” traders.  Big funds and trading firms regularly use options to establish their biggest positions – sometimes in conjunction with stock holdings, other times just using options.  It’s especially true for the most heavily traded ETFs and stocks. Less often, you’ll […]