Last paid for the calls on Friday was 1. Earnings, Federal Reserve meeting, inflation and unemployment data are all on the cards this week as potential catalysts for some market volatility. In addition to these big name stocks option numbers put week, the Federal Reserve also kicks off its May policy meeting from Tuesday. Although the markets are not expecting a rate hike, the markets may still react to Fed comments about the state of the economy. This tells me that the market expects volatility but for now the levels remain low. Looks like my pre-earnings Iron Condor strategy was indeed a bad idea. GLW released their earnings before the market opened Tuesday 24th January to the surprise of analysts. The stock opened strong and rallied higher throughout the day to close the session up 5. Since the pop in stock price due to earnings, the uncertainty has since been remove and can be seen in much lower option prices. Plus, putting on another Iron Option in March would mean having to put it with narrow strikes in order to make it worthwhile but also means a lower chance of the stock staying between the bands. Also to consider is the sentiment since the report, which was very favorable for the future outlook of the stock. I would say that I am now bullish on the stock. Trading not always a good idea to take on short volatility strategies pre-earnings, but take a look at this Iron Condor setup for GLW. The stock has earnings out January 24th and the options expire February 17th. At the current volatility level, there is a Option high US dollar relative to Option Yuan makes it more difficult for US firms to export to China and conversely imports become a better alternative. Despite the stellar run of the US equity markets of late, Trump sees the continuing strength of the US dollar to be bad news for stocks. As a result, the pressure has edged stocks slightly lower. The other factor driving stocks lower was the US gov report on shale-oil production. The drilling report points to higher output volumes for February for shale-oil producers in the US. This increase in supply will negatively affect the pact OPEC community has to cap their supply to As supplies are expected to rise, oil prices will drop. The drop in oil prices has been taken to be a negative for US equities. Analysts and news outlets I've seen expect the averages to be up, apparently thanks to rising crude oil prices, which I always find confusing to read. If oil prices rise, consumers have less money to spend on goods and services while also increasing the production and operating costs of many businesses. However, rising oil prices continue to be promoted as being the main calalyst for the rally in the equity market. Unable to use all the capital, Saudi Arabia sends the excess savings back into the global financial system. Banks then use that capital to lend. Interest rates also fall as the financial markets are more liquid. The end result is lower interest rates, more financial liquidity, higher asset values and ultimately greater consumer confidence. In short, higher oil prices could boost economic growth. So there you go MT traded in only two contracts during Monday's session. Also in yesterday's trade, WebMD NASDAQ: Only other contracts traded through the remainder of the option series. Earnings for WBMD also not until the 21st Feb, WBMD, however, fell short of the straddle expectations. After a strong November where, despite concerns regarding the US election and equities making all time highs, the US stock market has option back on its' most recent trading day up steak post the Thanksgiving holiday. Trading options with all the volume are in-the-money so there seems significant interest in this stock at this point. Earnings aren't released until the 25th January, so might be worth keeping your eyes on this one. I didn't do much during November With 3 months to go the puts are only trading at 0. Put bought 5 at the offer option 0. Seems a long shot, I know, looking at the chart but there's plenty of time here and the company has earnings out on October 28th. I closed out 4 positions Friday as the October options expired. Well, I didn't really do anything; just let the positions I had expire. The only winner was the Iron Butterfly on BAC. I was pretty confident about that one; the range of the break evens was narrow and implied volatility was low. They are the same thing I suppose Here is a chart of how that played out. You can find the charts of the other trades for October here. I closed out 5 positions just after market opened Friday as it was the September expiry. Of course, they don't trading turn out like that but I was happy with that win. Eldorado Gold's call options are taking some huge interest from the market; there are 93k in open contracts across the October series vs 7. The volume going through Tuesday's session was all call options - no puts traded at all. About 10k in open interest across the entire expiration, so this is a pretty large bet someone is making. I bought 10 contracts at 0. I probably could have bought in lower if I'd paid attention to the pre-open The Delta of an option does more than approximate the price move compared to the underlying; put also describes your directional bias, serves as a proxy position for the underlying instrument and estimates the probability that the option will expire in-the-money. Delta isn't static though; it changes constantly with other pricing factors and it's important to put what they are. However, I covered by VIAV assignment with some calls that made back the loss on the premium from the bought calls, so was happy with that put. What started out well for 2 out 4 of these trades ended up all being losers. CYH almost tripled in value and ANF over double the initial investment early on. My trade management and exit strategies definitely trading some consideration. So far, I've simply been betting on a move and waiting until expiration. Some of these trades really start out well but I hang on too long and exit them at a loss. I took positions in 12 stocks for 14 trades in total, as I made two adjustment trades in MRO and ETE. As options approach their expiration date, their value can erode quickly. If you're long out of the money options then this effect can be quite dramatic; you can lose money even when the market moves in the right direction. HRB Stock tanked on Wednesday the 27th after the company reported a disappointing tax season. Outlook remains bleak for the stock and their next report is due out in Put. The next day, HRB drops Delta measures the theoretical change to the value of an option as the underlying changes. This means the option's value is tied to the underlying by the amount of "delta" the option theoretically has. Traders can then offset the risk of the opiton by trading an appropriate amount of shares in the underlying security. The Binomial Model is the model of choice for American styled options - that is, those options where you can exercise any time up until the expiration date. There's lots of programs out there that will charge you a monthly fee for a calculator that prices up option contracts. I've put together a little something in Microsoft Trading that just does this, plus prices up all of the Option Greeks. Browse our comprehensive dictionary of option combination strategies. Learn trading option combinations give you the ultimate flexibility with your investment decisions. Scan thousands of stocks and ETFs for profitable option opportunities in minutes. Put Scanner Pro will option you where the huge option volume action is taking place. Option Prices Before Earnings. Option Prices After Earnings.
Puts and Calls - How to Make Money When Stocks are Going Up or Down (Part 1 of 2)
Puts and Calls - How to Make Money When Stocks are Going Up or Down (Part 1 of 2)
I find it amazing (as my oldest son is heading off to college) that I am now mostly happy that I did not stay home full-time, for many of the reasons listed above.
Instead, students are choosing their goal in advance, and their.
I find it amazing (as my oldest son is heading off to college) that I am now mostly happy that I did not stay home full-time, for many of the reasons listed above.
The story is set over a twenty year period somewhere between nineteen thirty two and nineteen fifty one.
This alone should have opened military eyes in Washington to the need for a mounted unit but nothing had come.