Thursday, May 1, 2025
Last week, for a brief period, there was some extreme options action in Cboe Global Markets (CBOE). The options traded 12x the normal volume, with 91% of the volume in calls. That many calls trading tends to be a bullish signal. In this case, the action was due to a rumor that CME had made […]
Our current analysis says the Infrastructure Bill in Congress will pass very soon. That’s after many backs and forths… but this last draft seems to be ready to run through the legislative and executive branches with a green checkmark. That’s why I’m watching some infrastructure stocks. Of course, some traders may argue we could see […]
Sonos (SONO) is a relatively new company that has only been trading on the major exchanges for a few years. In August 2018, the company priced its initial public offering at $15 a share, below the expected range of $17–$19. SONO made a splashy debut on the market, zooming 32% in its first day of […]
Covered calls are popular and powerful trading strategies for many reasons. Above all else, an overwriting system can work in just about any type of market. There aren’t many strategies that offer a benefit in most market environments. As a reminder, investors make covered calls when they buy a stock (in blocks of 100 shares) […]
Two of the big COVID vaccine producers, Moderna (MRNA) and Pfizer (PFE), saw a significant amount of options activity last week. On one day, with MRNA down nearly 6%, its options traded 4x the normal volume. Most of the activity was still on the call side of things though, which tends to be a bullish […]
An option premium is the money you earn for selling an option. Read on for a better understanding of premiums and what drives their pricing.
I’m still on vacation… but with the recent rally in cryptocurrencies, I’m digging into some charts on them. With Bitcoin, Ethereum and others, there are no “fundamentals” to study. Meaning, all we have is the chart to predict where we think these prices could go. Right now, they’re rallying strong… And going into the fall, […]
Hostess Brands (TWNK) is an iconic brand that has been around for decades and is the reincarnation of the old Hostess Brands. Some of its best-selling products include: Twinkies, Ho-Hos, Hostess Cupcakes, Ding-Dongs, as well as breads and cookies. Which filed for bankruptcy in 2012. A couple of years ago, Hostess Brands bought Voortman Cookies, […]
Covered call trading is a commonly used strategy to generate cash flow and help normalize equity returns. A multitude of research suggests a basic covered call trading plan, from a risk-adjusted standpoint, outperforms long equities. However, covered call trading can be used situationally as well. There are times when short-term overwriting can be a powerful […]
On the day of the FOMC meeting results last week, there was quite a bit of unusual options activity in Financial Select Sectors SPDR Fund (XLF). XLF, the most heavily traded financial sector ETF, traded about 2.5x its normal options volume. 67% of the activity was in calls, which is generally a bullish signal. The […]
