Over the weekend I received an email asking the following question: “Hi Andy, Can you make a post about this with an example using any stock/ETF or point me to one if it already exists? You are the first person I’ve come across that is looking at RSI readings from different time scales so I’m… Read more »
Short Strangle Earnings Trade As I’ve said numerous times in the past, statistically speaking, when it comes to options strategies it doesn’t get much better than a short strangle. A short strangle is a neutral, range-bound options strategy (short call and short put) that has undefined risk and limited profit potential. Typically, a short strangle… 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 »
Three Inflation Options Strategies Inflation, inflation, inflation! Every day on my 35-minute drive to drop off my oldest daughter at school, the two of us (one begrudgingly) listen to Bloomberg radio. And for months, the hot topic in the morning for the financial pundits has been inflation, and the various scenarios that could play out.… Read more »
Bear Call Spread Options Strategy – Russell 2000 (IWM) As I have stated over the past few weeks, bear call spreads are a good strategy for this market environment. And with implied volatility up again, the bearish-leaning options strategy looks even more attractive, whether as a hedge or simply to act on a directional bias.… Read more »
As I stated last week, bear call spreads are a good strategy for this market environment. And with implied volatility up over 30%, the bearish-leaning options strategy looks even more attractive, whether as a hedge or simply to act on a directional bias. Remember, as I’ve discussed on a few occasions, with a bear call… Read more »
Trade Idea: Learn How to Trade a Bear Credit Spread on IWM A few weeks ago, I posted a “Trade Idea” using a bear call spread in the SPDR S&P 500 ETF (SPY). On August 23, 2021, we went over a trade example in SPY selling the October 15, 2021 463/468 bear call spread for… Read more »
The S&P has been grinding higher for almost 200 days without a 5% pullback. According to esteemed analyst Jason Goepfert, “The S&P 500 has gone 189 days – nine consecutive months – without being more than 5% from a 52-week high. And it recorded its 43rd day with a 52-week closing high. Dating back to… 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 »
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!
