The SPDR S&P 500 ETF is always trending in the news & social media mentions. Volatility expectations are low and options prices are relatively cheap. We just took a nice profit on an SPY straddle or call purchase earlier this week on the 15th. Plus, we have a...
Twilio Inc. (TWLO) appeared in our list of compressed stocks this morning. You can see in the time series chart below that TWLO options’ 1-month implied volatility (the lower green line) has never been this low. When looking at the news to see if there was a reason...
It’s CPI day. Not only that, news and social media are booming with meme stock mentions. We have a highly speculative trade idea that plays off of the meme stock hype. Blackberry Limited, (BB) rose 19.6% in the last two days. Which is not nearly as big as AMC’s 135%...
NOV Inc. (NOV) NOV Inc. (NOV) appeared on our list of compressed stocks Friday, and as of last night’s close, the options are attractively priced. The company makesproducts to supportthe oil & gas drilling industry. The stock has a long history of making big moves...
When you are looking for the right options trade for a current market climate, knowing how the stock’s options prices compare to the volatility of the shares is like having the house advantage. This quick video explains how a Volatility Cone is created and what the...
When trading options there are a few factors your MUST get right. This tool shows you easily visualize duration and magnitude of stock price movement over time. By knowing this information, you can tell if a stock ever has a chance of hitting the price you are...
Volatility Skew reveals hidden data in an option chain. It lets you easily visualize the implied volatility of options at different strike prices with a common expiration. It’s hard to beat this handy tool for spotting which option will provide you with the greatest...
Here is a quick explanation of a powerful tool options pros use regularly. Let's take a look at how it can be extremely useful for a trader like you. It rapidly compares the relative prices and volatility expectations across expiration terms. This is key to spotting...
IMPORTANT NOTE--Registration is filling up fast for the upcoming webinar I am doing with Price Headley from BigTrends.com next Tuesday. If you want to see which is better for you, cheap options or perfectly priced options, this is a can't miss event. Sign up here and...
It’s Fed Day. It is often difficult to find trades just before the Fed Chair’s press conferences to discuss ratepolicy announcements. However, today it wasn’t difficult at all. That’s because Meritage Homes Corp.(MTH) a large home-building real estate business showed...