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Posts tagged "straddle"

Sideways Markets, Covered Calls and the RUT

I had originally thought that I might begin 2010 with a series of articles on covered calls and other ways of using options to generate additional returns during sideways market action. Since several other writers have already jumped on this subject (n...

Option traders expecting limited movement in Dell (DELL)

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It's a slow day in the options market, and investors are expecting a slow couple of months in terms of Dell (DELL) price action - and they are taking on a lot of risk to bet...

Hartford Financial: Volatility high ahead of Q3 report

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Hartford Financial Services (NYSE: HIG) is scheduled to step into the earnings spotlight right after Tuesday's closing bell, with the insurance issue releasing its final third-quarter figures. Analysts are expecting Hartford to report a profit of $1.11 per...

Implied Volatility Flat Ahead of Bank Earnings

With some very important earnings in the financial sector coming up this week (JPM on Wednesday; C and GS on Thursday; BAC and GE on Friday), I have been watching implied volatility (IV) in the sector very closely. Much to my surprise, implied volatili...

Bullish options activity ahead of Nike earnings

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After the opening bell, Nike (NYSE: NKE) will be reporting first-quarter earnings results. Analysts are looking for per-share results of 97 cents and revenue of $4.9 billion. Check out Michael Fowlkes'

Position Management for SPX Short Straddle

I suspect that when most investors make the jump from stocks to options, the most difficult issue for them to come to terms with is position management. With stocks, it is easy for an investor to reason that if a particular stock rises to a target pric...

SPX Short Straddle Still Hugging 1000 Level

In many respects the ultimate pure play on declining volatility is a short straddle in which near the money puts and calls are sold simultaneously in hopes that the underlying will move very little prior to expiration. While this is largely a neutral d...

The Sideways Play

The more dogmatic bulls and bears get about the markets, the more I usually begin to pay attention to the possibility of a sideways market. As is often the case, both bulls and bears can make compelling arguments to support their position – and even ...

How to Trade the VIX

Based upon the search terms that are landing visitors on the blog this morning, it seems as if many readers are interested in how to trade the VIX. This question really boils down to two separate issues: strategies and trading vehicles. Since I have t...

Round Number Magnet Strangle

The power of round numbers does not seem to receive a lot of play in investment circles. Sure, there is the psychological significance of an index or a stock crossing above or below a round number, but I am surprised that nobody ever talks about how to...