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) 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 »
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 »
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 »
Below is my list of ETFs with the most liquid options for the week of November 22. Here are the various levels I use to determine if an ETF is in an oversold or overbought state. Very Overbought – a reading greater than or equal to 90.0 Overbought – greater than or equal to 80.0… Read more »
As I said last week, earnings season is winding down, but there are still a few major names due to announce this week including Zoom Video (ZM), Best Buy (BBY), Dollar Tree (DT), Medtronic (MDT), HP inc. (HP)and a few others. The Week Ahead Zoom Video (ZM) Best Buy (BBY) Dick’s Sporting Goods (DKS) Dollar… Read more »
One of my favorite strategies is the long call diagonal debit spread, otherwise known as a poor man’s covered call. The strategy’s name comes from the reduced risk and, in most cases, significant lower capital requirement when compared to that of a classic covered call. Essentially you can create the same equity position as a… Read more »
I make my living selling lottery tickets. I always want to act like the casino, knowing that the probabilities are on my side. But I also understand that sequence risk is a fact that I must combat at all times. And the best way to fight off sequence risk is simply through allowing the law… Read more »
Transitory or not, inflation is on the rise. And the safe havens are benefitting greatly. Just look at the recent rise in gold prices The question is, how can we, as investors, take advantage of the continued rise in inflation and subsequent safe havens like gold? Covered calls? Now, while I am a huge proponent… Read more »
Next week brings a close to another earnings season. Yes, there will still be some stragglers like Lululemon (LULU), Oracle (ORCL) and several others due to announce in the weeks to come, so expect to see a continuation of the weekly top earnings options plays, but overall we shouldn’t expect to see another full-fledged round… Read more »
You’ll get Andy’s latest trades and takes on the market, along with four free options trading reports, discussing High-Probability Trading, Poor Man’s Covered Calls and more!
