Friday, April 19, 2024
Wow, what a week! For those whose portfolios are simply filled with long stocks, this has been a disastrous time. But for those who are swimming in cash, this is a great opportunity to make even more money by selling some options to take in the lofty premiums being priced into options due to fear […]
The market has been in a significant downtrend this year, but the ARK Innovation ETF (ARKK) has been hit even harder. ARKK is down 60% year-to-date as it holds some of the most speculative stocks from the past several years. However, several options trades last week appear to be from traders opening up bullish positions […]
Today we’re featuring Tim Melvin, the newest investing expert here at Investor’s Alley, here in Options Floor Trader. He brings 30+ years of investing experience and expertise in alternative strategies to create income and returns that don’t depend on the S&P 500 going up. Today, as markets are falling and fear is building, he has […]
One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor. An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss. A common […]
The market has been abuzz with the Elon Musk proposed acquisition of Twitter (TWTR). The company has agreed to be taken private by Musk at a price of $54.20 per share, but it could take several months to iron out the details. In the meantime, there has been a heavy amount of options trading on […]
Options block trades can be enlightening sources of information, especially when they occur in tiny stocks. Vroom (VRM) is a digital automobile dealership that has struggled mightily this year, down a whopping 85% year-to-date. The company is dealing with high costs and low margins. The options on VRM typically trade about 10,000 lots per day […]
Social media giant Twitter (TWTR) got a massive boost to the share price recently when the news came out that Elon Musk took a 9% stake in the company. He has since been named to the company’s board. Musk has a huge cult-like following, so many investors assume it will be bullish for the stock. […]
Options action returned in a big way last week to the meme stocks, made famous in 2021 through Reddit user groups. The primary platform for trading those meme stocks (and their options) was (and still is) Robinhood (HOOD). The popular mobile brokerage platform has struggled quite a bit since its heyday. However, heavy options activity […]
A couple massive options block trades last week could be very bullish indicators that the price of gold is headed much higher. Call spreads in VanEck Vectors Gold Miners ETF (GDX) and SPDR Gold Shares (GLD) could both be pointing towards much more upside in gold. The precious metal is often used as a hedge […]
Although the meme stocks were grabbing the headlines, there was some interesting options activity last week in VanEck Vectors Semiconductor ETF (SMH). SMH is a popular ETF for tracking the chipmaker industry, with over 30,000 options trading per day on average. On a day last week when options activity was 2x the normal amount, 65% […]
