Directional trend trading can be challenging… to put it mildly. The market swings and surges cause financial and mental damage and can shake up even the most disciplined plan. Predicting price correctly is a low probability prognostication. Many investors turn…
Buying options, either bullish Calls or bearish Puts, is a limited risk tactic that can be used as a stock substitution strategy for directional trading. No matter what happens to the underlying stock, the maximum dollar exposure is the premium…
A LEAP, or Long-Term Equity AnticiPation Security, is simply an option with a longer lifespan. Nothing more, nothing less. LEAPS are available on many securities and indexes, and like traditional options list both calls and puts. Given the fact that…
Earnings season is a time of heightened uncertainty. This translates into higher options premiums. After the event, premiums return to more normal levels. In the chart below, the orange line, which tracks the history of implied volatility, shows us that…
Options are one of the most versatile financial instruments available to investors today. Like any other investment vehicle, there are times when the use of options may be appropriate and times when one might be better served taking a position…
Options are one the most versatile financial instruments at your disposal. Options can be used to trade market direction, to trade volatility or to hedge a position in the underlying instrument. One of the most popular uses for options is…
With the New Year getting older we can measure up some of the most profitable financial strategies of 2016. A weak U.S. Dollar has supported the beaten and battered resource and commodities markets. Lack of confidence in the Federal Reserve’s action…
The term ‘volatility crush’ is music to the ears of option sellers while option buyers likely relate it to the sound of nails on a chalkboard. This term refers to the sometimes massive decline seen in implied volatility levels of options. While…
