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 [...]

Trade Options on the US Economic Recovery

As the recession continues to lift in the USA is it time to trade options on the US economic recovery? Traders may choose to engage in foreign currency options trading , trading options on US stocks, or options trading of commodities. In each case a slow but sure US economic recovery will likely set [...]

Euro Zone Recovery

A Euro Zone recovery may be in the works. Stocks rallied in Europe on news that Germany, as well as China, manufacturing indices came in higher than forecasted. A sign of renewed confidence on the continent was the lower interest rates paid at auction for Italian bonds although French bonds weakened. Meanwhile the Euro fell [...]

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? [...]

VIX Related Stock Gains

Forecasters have been talking of late about VIX related stock gains. The Chicago Board Exchange Market Volatility Index (VIX) has risen to historic highs in response to the ongoing drama of the European debt crisis. The VIX is a measure of market volatility. It is a reflection of the options market’s expectation of movement of [...]

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 [...]

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