Friday, November 24th, 2017

Best Option Trading Strategy

Option trading strategies can be simple and they can be complex. The best route for beginners is to stick with the basics. Here is what Futures Magazine had to say about options strategies for beginners.
In a covered call (also called a buy-write), you hold a long position in an underlying asset [...]

How to Make Money with Binary Options Trading

An often touted way to make money in options trading is with binary options. This is a legitimate way to trade options but unfortunately there are also many scams. How to make money with binary options trading is to only trade on regulated exchanges.
Binary Options Trading on Regulated Exchanges
Investopedia writes about [...]

Is This the Year for an Oil Stock Recovery?

Crude oil is at ten year lows and the oil sector is replete with bankruptcies. When will things get better in the oil patch? Is this the year for an oil stock recovery? Is it time for options traders to buy calls on big oil? The Huffington Post thinks that oil [...]

Has the Market Bottomed Out?

After the first of the year stock selloff it seems clear that the prolonged rally of US stocks is over but has the market bottomed out or is there more to come? Barron’s notes that VIX trading indicates a bear market.
Despite Tuesday’s rally, U.S. stocks and the price of oil are [...]

Can You Profit from Stock Volatility?

Investors are in anguish as stocks fly up and down. The question for options traders is can you profit from stock volatility? USA Today reports that Wall Street volatility rules as stock fall again.
Volatility continues to rule on Wall Street as stocks bounce around in choppy trading Tuesday amid oil weakness [...]

Straddle the Market with Options

The market goes up and the market goes down. Last week we wrote about the VIX frenzy as volatility rose to historic levels. We quoted Bloomberg regarding the 30 minute VIX frenzy.
Among the many scary things traders witnessed as stocks plunged last Monday, one of the most harrowing was the sight [...]

Calls or Puts on Teva

According to Forbes the Teva-Mylan merger mania is about profit margins.
Every man, woman and child in the U.S. will eventually take a pill manufactured by the new entity if Teva is successful in its pursuit of Mylan.
Given the Hart-Scott-Rodino Act, the Federal Trade Commission (FTC) will certainly require divestiture of [...]

Is the Market Correction Here?

Options traders may wish to ask themselves if the market correction is here. The Wall Street Journal reports a sharp drop in U.S. stocks.
U.S. stocks tumbled on Tuesday as the dollar rose to a nearly 12-year high against the euro and bond yields in Europe hit record lows.
The Dow [...]

Does a Successful IPO Guarantee Profits?

Forbes just posted an article about potential IPOs for 2015 and speculates that Uber will be the next blockbuster IPO. They also note that many investors are growing wary as a successful IPO does not necessarily guaranteed profits.
The years-long resurgence of the IPO market in the wake of the financial crisis [...]

Making Options Trading a Little Bit More Fair

A new rule by the Options Clearing Corporation will be making options trading a little bit more fair. It will also take away a source of easy income from many options dealers. A recent article in Reuters talks about a soon to be gone options trading strategy around dividends.
Large market makers [...]

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