On Demand

Options Commentaries

Showing Posts 1 - 15 out of 58 found.

Spotting Unusual Options Activity In Avanir

Spotting Unusual Options Activity In Avanir

Monday saw shares of Avanir Pharmaceuticals (AVNR) soar on positives news from a mid-stage study on the company’s new Alzheimer’s drug AVP-923.  Shares climbed $5.24 (nearly 80%) on the news. Unusual Options Activity At least one trader anticipated positive news from the study.  Monday morning at between 9:38 and 9:39 am EST saw a trader come in buy 650 AVNR Sep 10 Calls for $0.39.  Less...

Continue Reading

What Is The VIX Saying Now?

What Is The VIX Saying Now?

The chart below is a long-term look at volatility (the VIX, red line).  The current low VIX readings are similar to the period of low VIX over the years of 2005, 2006, and into the beginning of 2007, which saw the S&P 500 index move from the 1200 level to north of 1500, a 25% gain (black line).   The picture in VIX continues to suggest that the current bull trend remains in force.The...

Continue Reading

Respect The Risk Management Gods

Respect The Risk Management Gods

Every now and then I find traders will go out on the risk curve and take a speculative trade.   That's a good thing — because as they say in baseball, 'you cannot steal second base with your foot on first.'  However, there are limits, and often I find these traders stretch too far and they soon find themselves wounded - sometimes a devastating blow that is nearly impossible to overcome.  How...

Continue Reading

Advanced Options: Buy A Strangle Swap Wynn Resorts

Advanced Options: Buy A Strangle Swap Wynn Resorts

When I think that a stock has "settled in" (established a trading range) my first instinct is to sell a straddle or a strangle or something along those lines.  The problem is this involves theoretical unlimited risk and therefore causes a big margin issue for most of my students.  Are we just out of luck?  Certainly not!  In the past, I have showed how we can sell an iron condor or iron...

Continue Reading

Time To Manage Risk: E-Mini S&P Option Play

Time To Manage Risk: E-Mini S&P Option Play

I don’t need to remind anyone of the significance of this day. The trading world was heavily affected by the events that took place thirteen years ago. Things will never be the same, but we have to continue to move forward.  Please remember those we lost and the families that continue their journey forward without them. Economic Outlook All of the sudden the confidence in the slow but steady...

Continue Reading

Is The Bottom In For Deutsche Bank?

Is The Bottom In For Deutsche Bank?

Shares of Deutsche Bank (DB), a $48 billion global investment bank headquartered in Germany, are down 33.60% from the January 15 high of $53.15. This compares to the Financial Select Sector SPDR Fund ETF’s (XLF) year to date gain of 7.65% and the iShares MSCI Germany ETF’s (EWG) year- to-date loss of 6.42%. Valuation The reason for the underperformance in 2014 is due to the litany of legal...

Continue Reading

Stocks: Symantec Squeeze Trade In Play Now

Stocks: Symantec Squeeze Trade In Play Now

Hi, world! I love this time of year! I won three out of my four fantasy football games last week (I know, I agree, four leagues is way too many), last weekend was grand and this upcoming weekend I plan to go to “Shakespeare in the Park”. I am a big Shakespeare fan. I thought about doing this write-up as very poetic one, but thankfully decided against it (for now). Symatec Squeeze I entered...

Continue Reading

Trading Psychology: Risk Averse Or Risk Seeker?

Trading Psychology: Risk Averse Or Risk Seeker?

By definition, active traders and investors have some degree of Risk Seeking built into their personality, or they wouldn’t be so interested in the markets. Instead, they would be satisfied with their day job. Individuals who follow the market closely and get involved with it on a daily basis usually need the stimulation and challenge that comes from wrestling with the unpredictable Wall...

Continue Reading

Options Play: The Non-Gap Fill In Green Mountain

Options Play: The Non-Gap Fill In Green Mountain

Over the past four earnings events, Keurig Green Mountain (GMCR) has seen strong moves higher in response to improving company fundamentals.And because of the continued aggression by buyers, the stock often fails to fill or break below that earnings gap. I'm expecting a similar pattern to develop this quarter. As GMCR fades its earnings move, it will come into levels in which buyers...

Continue Reading

Interesting Times: Watch Equity Markets On September 18

Interesting Times: Watch Equity Markets On September 18

“May you live in interesting times” is a Chinese curse. And the times are about to get more interesting, thanks to a couple of development in different parts of the world, but especially China. First, mark the date September 18 on your calendar in big red letters. There are two events scheduled for that date that potentially could have a substantial impact on the world's equity markets. The...

Continue Reading

Options Trading: Solving The Earnings Play Puzzle

Options Trading: Solving The Earnings Play Puzzle

Believe it or not, I don't have crystal balls to help me generate my trade signals.  For earnings plays I can't even really depend on technical analysis to give me very actionable guidance.  I have written at length about how using past earnings, what the market is pricing into the pending move is and, to a very much lesser extent, technical analysis helps me.  All these things are merely...

Continue Reading

Oh, What To Do About Apple!

Oh, What To Do About Apple!

Last week, I mentioned a few times in articles and social media that it would not be a bad idea to take some Apple off the table if you owned the stock or calls, or perhaps just buy some very cheap put protection. At all-time highs, it didn't really seem that whatever news comes out next week is going to goose the stock - hence, what is likely known is probably priced in already. In fact,...

Continue Reading

Infinity Pharmaceuticals Still Has Room To Run

Infinity Pharmaceuticals Still Has Room To Run

Infinity Pharmaceuticals (INFI) and AbbVie (ABBV) announced on September 3 they will jointly develop and commercialize Duvelisib (Infinity's oral inhibitor of phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma, for the treatment of patients with cancer) in the United States. Infinity will receive an upfront payment of $275M and $530M in potential milestones (currently has a market...

Continue Reading

Durant Scores With Nike Deal: Stock Primed To Breakout

Durant Scores With Nike Deal: Stock Primed To Breakout

I was reading an article today that said Kevin Durant signed a major $300 million deal with Nike. Wow! $300 million for shoes. Epic job, Kevin! Here’s the article if you’re interested.I don’t even watch basketball that much. I love sports as you know, but basketball...not the biggest fan, although I will watch the finals. The article mentioned both Under Armour (UA) and Nike, Inc. (NKE). I...

Continue Reading

Grains: Soybeans Vulnerable To Fresh Lows

Grains: Soybeans Vulnerable To Fresh Lows

CME agricultural markets are being pressured by high corn and soybean ratings from the USDA and from private forecasters FC Stone and Allendale to name a few.   Bearish yield/production estimates were released after Monday’s close.  The reports showed that soybean conditions are record large as of the end of August. Corn ratings that are termed good to excellent are at the upper end of the...

Continue Reading
    1 | 2 | 3 | 4    
Membership is Free. Join Now in less than 5 seconds! Alternatively Join or Sign In here.