Friday, November 24th, 2017

Reduce Currency Risk with Options Trading

Investors and traders purchase options contracts in order to lock in opportunity at a reasonable price and to hedge risk. Those doing business across national borders commonly reduce currency risk with options trading of foreign currencies. Foreign currency options trading is also used by currency speculators in search of profits amid market volatility. Although [...]

Buy Options to Hedge Risk

In today’s uncertain world investors look to preserve wealth as much as they do to increase their holdings. Options can be a useful tool for those wishing to do both. A dominant feature of options markets is that one can buy options to hedge risk. The Chicago Board Options Exchange, CBOE, was founded in 1973 [...]

Buy Calls on Gilead Sciences

Now that the world has its first preventative drug for HIV, Truvada, is it time to buy calls on Gilead Sciences – GILD, the folks who own the patent? Or is it too late to buy calls on Gilead Sciences because the market already reacted to the news of FDA approval? Remember that both fundamentals [...]

Buy Calls on Alcoa

Although lower second quarter earnings drove Alcoa’s stock price lower news of a new contract with Airbus may be good reason to by calls on Alcoa. Aluminum prices are at historic lows which is what drove down aluminum profits for the company in the second quarter of this year. However, its presence in aerospace is [...]

Buying Puts on Oil

As the worldwide economic picture becomes progressively more bleak buying puts on oil may be profitable. Crude oil prices fell again as the severity of the economic mess in Europe sinks in. The fall came just a day after enthusiasm over new stimulus plans in Europe drove prices up. Brent crude is now below $100 [...]