Potential Starbucks (SBUX) Trade Using the Highest-Probability Options Strategy


Short Strangle Starbucks Statistically speaking, it doesn’t get much better than the short strangle. Many professionals claim it’s the ultimate options strategy. And there is no doubt it is the bread-and-butter options strategy among most traders that take a quantitative, or mathematical approach to trading options. A short strangle is a neutral, range-bound options strategy… Read more »

Top Earnings Options Plays for the Week (3/28 – 4/01)


We are inching closer and closer to earnings season. Until then we still have a few opportunities that are worthy of a look. This week Walgreens Boots Alliance (WBA) offers one of those opportunities, among a few others which I will discuss in several follow-up posts. WBA is due to announce before the open on… Read more »

The Problem with Trying to Hit Home Runs on Every Trade


I don’t really care for market opinions. Oftentimes, they aren’t objective, just simply self-serving. I’ve traded professionally for over 20 years and it amazes me the lack of forethought that goes into actual investment strategy. I mean, come on: Don’t boast about returns over the past three years when we’ve seen the market skyrocket to… Read more »

How I Approach a Trade in an Overbought ETF


Each week I send out my High-Probability Mean Reversion Indicator which includes roughly 25-35 highly liquid ETFs. In the next few months, I’ll be doing the same with a highly liquid list of stocks as well. The list contains the overbought/oversold levels of each ETF as well as the current implied volatility and IV rank.… Read more »

Trade Idea: My Strategy for Nike’s Upcoming Earnings


I mentioned in my weekly post, Top Options Plays for the Week, that Nike (NKE) offered a potential earnings trade next week. As I’ve stated in the past, I hope that by going through a few examples of various options strategies every earnings season we can start to build a solid foundation on how to appropriately apply options… Read more »

Top Earnings Options Plays for the Week (3/21 – 3/25)


We are officially in the doldrums between earnings seasons. But an opportunity or two can still be found each week. And while the offseason earnings trades oftentimes lack all of the necessities for an actual trade, it’s still worth taking a look at potential trades as we patiently wait for another upcoming earnings season, if… Read more »