Trade Idea: Selling Inflated Premium in Oil and Gas ETF

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Black Friday marked one of the steepest one-day declines in crude oil history. Global oil prices plunged 10.7% before recovering a bit Monday. Yes, some of the move lower was exacerbated by the thin trading volume that typically occurs on holiday-shortened sessions, but it doesn’t hide the fact that oil prices have come a long… Read more »

Top Earnings Options Plays for the Week (11/29– 12/3)

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Top Earnings Options Plays for the Week (11/29– 12/3) It was another good week for earnings trades. I just keep chugging along, maintaining my mechanics, trade after trade, allowing the law of large numbers to lead the way. While earnings season has passed, there are always a few companies that report outside the normal window.… Read more »

Another Opportunity for Selling Premium in the S&P 500 (SPY)

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Selling Premium in SPY The CBOE Volatility Index (VIX), otherwise known as the investor’s fear gauge, is once again hovering around 20, a number that typically bodes well for those who predominantly sell options for a living. Credit spreads are great strategies for this market environment, particularly for those who prefer risk-defined options strategies. I’m… Read more »

Trade Idea: Potential 10.7% in HPQ Over 4 Days

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For months I’ve been writing about short strangles and how they offer investors one of the highest-probability strategies on the market. If managed correctly, short strangles are an incredible strategy. But the capital required can be steep, so most investors shy away. Plus, the thought of being naked on both sides of a trade (call and put)… Read more »