Strategies

This Large Options Trade Should Yield 12.8%

This Large Options Trade Should Yield 12.8%

Many traders who don’t spend a lot of time using options assume that most options trades are short-term in nature. While it’s true that many options trades have expire in 30 days or less, there can also be a good amount of long-term activity. Long-term options are available on most stocks that trade at least […]

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Are We Headed For A Market Crash?

I recently wrote “Most readers have felt … for some time, … things are just not right, yet so far, nothing horrible has happened.” Ron Paul’s recent article, Is The ‘Mother of all Bubbles’ about to Pop?, reinforces those fears: “When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets […]

Is Investing In Foreign Currency Still A Good Idea?

Is Investing In Foreign Currency Still A Good Idea?

In 2008, I began investing in foreign currency. The Fed created trillions of dollars out of thin air, high inflation was sure to follow. With the help of friend Chuck Butler, I bought FDIC insured foreign currency Certificates of Deposit (CD) through Everbank. I also bought Exchange Traded Funds (ETF) and sent money offshore; investing […]

Protection Against a December Volatility Spike

Protection Against a December Volatility Spike

Stock market activity has essentially slowed to a crawl, and many traders are wondering if that’s it for volatility in 2019. Some traders are jokingly wondering if they should take the rest of the year off. It certainly seems like the market isn’t interested in action these days. There are certainly mechanical reasons for the […]

Trade of the Week: Unusual Options Activity in Consumer Staples

Trade of the Week: Unusual Options Activity in Consumer Staples

This week, the options trade of the week concerns the consumer staples sector. A trader took a large bearish position on the Consumers Staple Select Sector SPDR ETF (XLP). XLP covers the sort of goods consumers buy regardless of economic conditions like toothpaste and soda. It also includes the places where most people buy those goods like Walmart […]