Check out the June 2011 wrap-up for an introduction to what we’re presenting below. It’s probably unnecessary to say that August 2011 hasn’t been kind to stock market bulls. The NDX / and have fallen 13.2% and 14.4%, respectively, since July’s OpEx. If all of the bearish news about … well, everything and everywhere on [...]...
By Emerging Money:How do I hedge and why did my hedge not work in the past? Most people look at options, particularly PUT options as a stock insurance policy. The short answer is-- they are correct, but most are confused by the application of a stock hedge. Buying can be expensive and the premium can suck a stock's profit right out the room. Let's walk through a typical hedge.Let's first take a look at the conventional hedge. Most books and online classes teach the student / trader to use at-exp...
By Rookie IRA Investor:
This is a reply to John Mylant's thought provoking Seeking Alpha article entitled An Options Trade For Apple (AAPL). You are recommended to read his whole article, but the suggested trade quoted below is the meat and bones of it, reproduced here with only slight edits for clarity.
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By Dr. Duru: For almost five years, Google (GOOG) has not been able to make a clean break from the $600 price level. The weekly price chart below shows how GOOG has not yet reclaimed pre-recession prices. Even more notable is GOOG's 140%+ move from the Fall of 2008 low to the beginning of January, 2010 where GOOG once again stalled just above $600. That bounce essentially represents GOOG's entire post-recession recovery.GOOG has not been able to break away from the $600 level for many yearsEach ...
By Matthew Whiz Buckley:Strategic Mindset: Market Neutral with possibilities of Surges in Volatility.Target: Salesforce (CRM) trading @ $147.83Commit Criteria: CRM Implied Volatility is overpriced relative to its forecast volatility of 9.81% over the trade period. We are looking for possible price movement but for it to stay within its $130.00 to $165.00 price range until the exit of this trade.Tactic: Opening 10 CRM June 2012 Iron Condors (strikes [125/130/165/170]) for a $1.15 creditTactical E...
By Rocco Pendola:Yesterday on , I showed how the following Apple (AAPL) option trades would have worked out for you, as of intraday Thursday, had you entered them just ten days prior:
Short 1 May $565 put (loss of approximately $1,900).
Long 3 October $530 calls (loss of approximately $5,025).
Long 7 October $700 calls (loss of approximately $3,395).
Judging by the comments' section of that article, it seems that a handful of readers (not , of course) do not understand the meaning of words...
By John Mylant: Apple (AAPL) has been bearish since it peaked the beginning of April just over $630. Since that time it has backed up almost 100 points. This provides us with a nice options play on the stock that I would like to share.Before I share the trade, I think it is important to point out that this move down by Apple is not out of the ordinary. The shares had tumbled since April 1 amid concern that iPad demand will slow and iPhone sales may slump before the release of a new model later t...
By John R. Conway:In the home improvement sector both shares of Home Depot (HD) and Lowe's (LOW) have risen over 20% year to date and have been strong market performers. There are currently ten trading days left in this brutal "sell in May and go away," and in the long term both Home Depot and Lowe's are poised to run higher on an improving housing market, but in the short term when there are broad market sell-offs (as investors have seen in the month of May) the market will naturally affect str...
By Dark Horse Traders' Hedge:
Green Mountain Coffee Roasters' (GMCR) founder and former Chairman, Bob Stiller, is arguing "don't let him go" after his dismissal for having a margin call on GMCR shares that prompted the sale of another $125,000,000 on May 6, 2011. The fac...
By Interactive Brokers: YHOO – Yahoo!, Inc. (YHOO) – Shares in Yahoo, Inc. are up better than 5.0% this morning, though not on the back of Facebook’s highly anticipated IPO. YHOO’s shares rose as much as 6.3% to $15.87, the highest since Valentine’s Day, on reports the company is in talks to potentially sell its stake in Chinese Internet Company, Alibaba Group Holding Ltd., for an estimated $7 billion. Options traders positioning for shares to continue to rise are targeting weekly call...