Tuesday, February 7th, 2012

Trading Options on US Debt

Many traders might be interested in effective ways of trading options on US debt considering the apparent failure of the so called Super Committee to come to grips with the mounting US debt. Hedging risk with options is a common tactic in uncertain times like this. Trading options can also give traders a useful and [...]

Hedging Risk with Options

Hedging risk with options is a common practice of producers and consumers of commodities, companies doing business internationally, and owners of stocks, futures, and precious metals. By buying calls or puts the options trader locks in the equity price and can sell in the case of puts or buy in the case of calls until [...]

Trading Options on Starbucks

As the 40 year old company continues to beat earnings estimates trading options on Starbucks – SBUX – can offer traders a degree of assurance. With options, traders can position themselves so that they will not miss out on continuing stock gains and not be stung by an often predicted but not yet seen slump. [...]

Day Trading Options

The stock market had a strong month and corrected at the end allowing those day trading options to profit from both advances and retreats of the market. The constantly simmering European debt crisis continues to cast a pall over expectations. It is, to a degree, a lose-lose situation. If the wealthier members of the EU [...]

Netflix Options

How should a trader trade Netflix options today? Netflix – NFLX – was trading at $17 a share in mid-2007 and peaked at nearly $300 a share in July of 2011. Since that time it has fallen precipitously to the $120 a share range. What the heck happened and what is going to happen next? [...]

Energy Sector Options

Trading energy sector options can be profitable. However, the energy sector is not just trading oil options in big oil with stocks like ExxonMobile – XOM or British Petroleum – BP. The energy sector includes every facet of research, development, manufacturing, exploration, extraction, refining, distribution, and sale of all sources of energy. One can [...]

Foreign Stock Options Trading

Foreign stock options trading is available through the Chicago Board Options Exchange, CBOE. Options traders can trade a large of number of exchange traded funds (ETF’s) comprised of stocks in foreign markets. Rather than trading options on US stocks like Boeing – BA, Cisco – CSCO, or Microsoft – MSFT, traders can trade puts or [...]

Trading Weekly Options

Trading weekly options offers the trader a variety of short term stock and index opportunities. As of September 21, 2011 the Chicago Board Options Exchange (CBOE) lists 81 stocks and funds available for trading weekly options. These include thirty different classes of options including indexes. Weekly options are listed on Thursdays and expire on Friday [...]

Copper and Oil Options

Copper and oil options are a useful indicator for the direction of the economy. The other day stocks fell amid concern about the ability of Greece and the European Union in general to set the necessary conditions for a bailout of Greece before the country defaults on its debts. While stocks went down more investors [...]

Oil Futures Options

Crude oil futures and oil futures options dropped like rocks in pond at the news of the lightning rebel advance into Tripoli in the Libyan civil war. Oil futures and oil futures options had been driven higher by the threat to oil production posed by the civil war in the North African oil producer. Although [...]

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