Trading Options Around Earnings Announcements For years and years clients of mine asked if I could teach them how to effectively trade around earnings announcements. And for years and years I stated: No! At the time, there were only 12 expiration cycles per year. Each expiration occurred on the third Friday of the month, so… Read more »
This week is arguably the beginning of one of the most anticipated earnings seasons in market history. The magic starts in earnest at the opening bell Wednesday when JP Morgan (JPM) and Delta Airlines (DAL)announce their earnings. And more companies follow suit as the week progresses with Morgan Stanley (MS), Bank of America (BAC), Citigroup… Read more »
What is high-probability options trading? I am often amazed by the lack of common sense when it comes to investing. Investors seek the best possible information, but unfortunately most turn to the wrong sources. For starters, turning on the television for investment advice, in most cases, is a big no-no. Yet, how many people listen… Read more »
Trader’s Toolbox: High-Probability Mean Reversion Indicator (Heading into the Week of August 30) Let’s get this straight from the onset: There is no holy grail when it comes to indicators. You are not going to find an indicator that is completely foolproof. It doesn’t exist. However, there are certainly helpful indicators out there to assist you… Read more »
Trader’s Toolbox: High-Probability Mean Reversion Indicator Current High Probability Mean Reversion Indicator (ETFs Heading into the Week of October 4) Archived High Probability Mean Reversion Indicator (ETFs Heading into the Week of September 27) High Probability Mean Reversion Indicator (ETFs Heading into the Week of September 20) High Probability Mean Reversion Indicator (ETFs Heading… Read more »
Profits, profits, profits, that’s all most traders, particularly newbies, think about when placing a trade. But, when taking a statistical or quantitative approach to the market, the most important factor is risk management. And proper risk management starts with a proper position-sizing plan. So rather than looking at ourselves as traders or investors, I would… Read more »
Many of you have asked that I give a bearish call spread example in the iShares Russell 2000 ETF (IWM). I’m not going to get into the weeds on bear call spreads today, but if you wish to learn more about my approach to the bear call spread option strategy, including another bearish call spread… Read more »
I’m often asked, “What’s the best stock for credit spreads?” Admittedly, as a quant-based options trader, I’m dumbfounded by the question because it would require me to have a crystal ball, and unfortunately, my crystal ball broke decades ago. So, I can’t answer the question with any accuracy. However, I can tell you how to… Read more »
I’m often asked about my favorite options strategy. What’s my bread and butter? Statistically speaking, it doesn’t get much better than the short strangle. Some say it is the ultimate options strategy. A short strangle is a neutral, range-bound options strategy (short call and short put) that has undefined risk and limited profit potential. Typically,… Read more »
One of my favorite, defined risk, non-directional options strategies is known as the iron condor. Yep, weird name, I know. But the name makes perfect sense when you look at the profit/loss chart for the strategy. An iron condor is not only one of the most powerful options strategies, it’s also one of the best… 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!
