Tag: position size

Top Earnings Options Plays for the Week (1/24– 1/28)


Earnings season is officially upon us. Next week is a big earnings week for the market. A few of the highlights are the earnings announcements of International Business Machines (IBM), Verizon (VZ), Microsoft (MSFT), AT&T (T), Boeing (BA), Tesla (TSLA), Intel (INTC), Mastercard (MA), Visa (V), Chevron (CVX), Caterpillar (CAT) and numerous others. Remember, risk… Read more »

Trade Idea: Short-Term Bear Call Spread in XLE


Energy stocks have led the way so far in 2022. The sector is up well over 10% in 2022 alone. But the short-term push higher has pushed the sector, as seen through the SPDR Energy Select Sector (XLE), into an extreme overbought state. Typically, when we see readings this extreme a short-erm pullback or reprieve… Read more »

A Practical Hedge Strategy as We Start a New Year!


On Monday I talked a little bit about the inherently bullish poor man’s covered call strategy using an example of a potential upcoming trade in the Dogs of the Dow. Today I want to discuss the exact opposite, a bearish income strategy, or hedge play known as the poor man’s covered put. Most traders, or… Read more »

One More Trade in the S&P 500 (SPY) to End 2021


Selling Premium in the S&P 500 (SPY) We’ve had some good fortune since late August using bear call spreads on the major market ETFs. The heightened volatility has allowed us to take on some fairly conservative trades that have thankfully led to some decent profits. And even though I tend to go out 30-60 days… Read more »