Bond yields are at record lows, which has caused many income-seeking investors to turn to high-yield stocks, while others have supplemented dividend payments with income from covered calls. Income investors can write (i.e., sell) call options on stocks that they currently own to increase portfolio income. Writing covered calls takes… Read More

A put is an option contract that gives the owner the right, but not the obligation, to sell 100 shares of the underlying stock at a specified price (which is known as the strike price of the put) at any time before a specific time (the expiration date of the… Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the… Read More

Once again, it’s just about time to buy the buck. #-ad_banner-# Since peaking in July near 84, the U.S. Dollar Index has tumbled 6%. That may not seem like much of a move — after all, there are plenty of stocks that… Read More

Once again, it’s just about time to buy the buck. #-ad_banner-# Since peaking in July near 84, the U.S. Dollar Index has tumbled 6%. That may not seem like much of a move — after all, there are plenty of stocks that… Read More

The options market is pricing in a HUGE increase in volatility.    And since increases in volatility typically happen as stocks move lower, let’s throw one more indicator into the bearish camp…… Read More

The options market is pricing in a HUGE increase in volatility.    And since increases in volatility typically happen as stocks move lower, let’s throw one more indicator into the bearish camp…… Read More

Q2 earnings season is upon us, and earnings announcements can be catalysts for large directional moves in stocks. That makes the options straddle the perfect trading tool for the weeks ahead. This strategy involves buying both a… Read More

Q2 earnings season is upon us, and earnings announcements can be catalysts for large directional moves in stocks. That makes the options straddle the perfect trading tool for the weeks ahead. This strategy involves buying both a… Read More

Over the last two days, we’ve covered two of my favorite option trading strategies…   Selling uncovered (or “naked”) puts allows you to collect money just for agreeing to buy stocks at a discount. It’s the best income-producing… Read More

Sometimes options are just too darn expensive. It’s frustrating. You’ve done all the homework, crunched all the numbers, checked out the chart, and determined that XYZ stock is ready to pop.   So you rush over to the options market and look… Read More

On Tuesday, we discussed the basics of how to pick the right options trade for you. Today, we’ll look at the key concept a successful options trader needs to understand before jumping into the market…    Options traders need to understand probability. Read More

Earlier this week I showed you how I use sentiment analysis to track the emotion of the market each week.   Today I want to share with you the three strategies I use when choosing my… Read More