Options traders are always looking for ways to predict how the market will move, and you've likely heard professional traders talk about a stock's moving average, which can help you to gauge whether it's time to buy puts or calls…
Today's choppy session was somewhat expected with renewed interest in "safety trades"…
Options Insider Founder Mark Longo will host an educational seminar on Tuesday 8/4 at 4:30pm (PST). The seminar is entitled "The Top 5 Mistakes of Options Traders (and how to avoid them). Options Insider users should follow the included link to watch the seminar…
In one of my previous newsletters, I addressed the issue of the intrinsic value of option premium as well as the extrinsic (Time) component of it. However, no matter how obvious and self-evident those concepts appear to me, to my students, they seem to be extremely confusing…
In one of my previous newsletters, I addressed the issue of the intrinsic value of option premium as well as the extrinsic (Time) component of it. However, no matter how obvious and self-evident those concepts appear to me, to my students, they seem to be extremely confusing…
Our stock market indicators have turned positive this week, signally us to the fact that there are more buyers than sellers in this market place. How long our defensive team (buy stocks and ETFs) will stay on the field is anybody's guess. But until the defensive coach (move to cash via money market) tells us to protect our portfolios, we are going to try and gain a few yards; (make money). Until we lose possession of the ball ( stock indicators turn negative) we can safely initiate covered calls in our portfolios…
In a recent Wall Street Journal there is a wonderful article written by James B. Stewart, "A (Covered) Call For Caution On the Market". His trading wisdom is a practical breath of fresh air to an overextended market…
After the publication of my previous article, I have received some emails from our readers asking for a specific example. Some even said that the article was incomplete without the example, for I have provided the readers only with a template for an I.C. At any rate, I will oblige the readers' request, as I usually do, and present a current I.C. trade that I am in…
Tips, tricks and strats for choosing the right put option…
Warning Will Robinson! There are no acceptable covered call opportunities this week. So stay clear!
Sooner or later, the financial sector will come back. Calling a bottom (or a top) in anything is downright impossible. Anyone who does it once is lucky. So how do you play the longer term, realizing that you don't know when the eventual reversal will happen? The better way to play this is with an exchange-traded fund (ETF) that covers the sector, such as the Financial Select Sector SPDR (XLF). Or, better yet, you could commit even less cash and play LEAPS…
A rundown of high-yield covered call opportunities.