Option Rolling 101: Lower Risk and Increased Profitability
Option Rolling 101 After nearly 18 years that in the investment education industry, option rolling is one “trick of the trade” that few investors use. If rolling is discussed, it’s typically from a standpoint of weakness. That means that they’re looking to “fix” a losing trade and rolling by significantly increasing risk. What I’m about…
SPY Option Bears Come Out of Hibernation
SPY Unusual Option Activity Report The market has had a good week and tested the upper end of this weeks expected move. The big move came following Pfizer’s vaccine news on Monday. Since that time, the price has stagnated and may look to retrace. Entering next week. As the price flounders near extremes, unusual option…
Pfizer Insiders Lining Up to Sell After Vaccine Announcement
Pfizer Inc (NYSE: PFE) Insider Report Pfizer made huge waves on Monday on the announcement that their vaccine was 90% effective among volunteers with no prior COVID infections. In the Northern Hemisphere where COVID cases have jumped significantly, that is a huge announcement. You would think that being the first to produce a workable vaccine…
Cannabis Becomes Big Post-Election Winner
Cannabis New Highs Across the country there was cannabis ballot initiatives that voters had a chance to cast their ballots on. In every instance, the voice of the people opted to expand the use of cannabis in their state. The ballot initiatives include for both recreational use and medicinal use. A good example of the…
VIX Volatility Spread (VVS) is Now Open
Guide to Using the VIX Volatility Spread (VVS) We had an open house yesterday at TheoTrade and it was great to have so many people join us. It’s nice to give people a look behind the curtain of what we do. If you participated, you saw Don Kaufman walk through a trading strategy called the…
How SKEW’d is the Market Post-Election?
Post-Election SKEW One of the indices that I follow closely is the Cboe SKEW Index (SKEW). For those that actively trade options, the concept of skew is probably not a foreign concept. However, most people aren’t aware that there’s an index that tracks the level of skew for the S&P 500 Index options. Looking at…
An Ode to Post-Election Day Volatility
Election Day Trading Opportunities In this morning’s chat with our own Don Kaufman, he outlined a trade to play a potential post-election move in the Financial Select Sector SPDR ETF (NYSEARCA: XLF). As always, he doesn’t talk about it unless he’s willing to trade about it, which he did. In this post, I’m going to…
Fisker, the Oldest New Kid on the EV Block
Fisker Inc (NYSE: FSR) Back in 2012, Tesla and Fisker were two fresh-faced EV car companies bursting onto the scene. However, just like the film Highlander, there could be only one. In the end Tesla went on to EV dominance and Fisker lasted about a year before filing for bankruptcy. The Federal Government lost about…
Election Risk? Here’s How to Hedge It
Election 2020 Hedging Edition Many investors are nervous about the upcoming election. Do we know who wins on November 3rd or 4th? Heck, will we even know by the end of the month? Also, what will the market’s response be to the election results? There is definitely more questions than answers and even if the…
XLE Option Bottom Feeders Get Fed on Thursday
XLE Unusual Option Activity Report As the stock market was reeling into the close on Wednesday, a big fish entered the waters of XLE and took a large bite. That bit was a significant amount of option long call option contracts betting on a big move. The initial stages of a bullish move appeared on…