Trading Facebook Options

In light of the upcoming Facebook IPO we add this discussion of trading Facebook options to our previous musings on GM options and trading puts on LinkedIn options. According to press reports Facebook is soon to announce that it is going public with a $10 Billion offering in stock. Speculation puts the anticipated value of [...]

EU Embargo of Iranian Oil

Will the EU embargo of Iranian oil drive prices up or will other producers increase output? As part of an ongoing effort to force Iran to forego its supposed development of nuclear weapons officials on the continent announced an EU embargo of Iranian oil. Other measures include freezing assets of the Iranian Central Bank and [...]

Profitable Options Trading

After a year of dashed expectations and chaotic markets what is the best route to profitable options trading for 2012? Euro options trading was attractive, and profitable, for many last year as the seemingly eternal European debt dilemma drove the Euro downward. In the US options market calls generally worked in the first [...]

Buying Puts on SAP

Is the current flurry of activity with traders buying puts on SAP part of the greater EU economic picture or does it just have to do with issues internal to SAP. SAP ADR shares are currently lower and have been trending downward for about two months. The put to call ratio for January 2012 puts [...]

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? [...]

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 [...]

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