I don’t usually give too much weight to round numbers, but it does seem like Dow 10, ooo has been pulling us up like a tractor beam. Now, it could just be that we are at the beginning of a new bull market and 10,000 will just be a stop …
Today was another low volume rally on not much news. On days like today, I mostly try to sit on my hands. I do research, catch up on reading, and stay away from my keyboard (for the most part). You also have to stay alert for opportunity, however, and today …
Almost from the beginning, AIG has not acted as I had hoped it would for the NOV / FEB calender spread. Almost immediately it just dropped like a stone, and since the strike price was in the other direction ($60) , this was not ideal. Today, with the market again …
Today we are going to add a bit more FAS (the 300% levered financial ETF). Currently trading at $83.30, we are going to buy another calender spread, but for this one we are going even deeper in the money, and even further out in time. All of the factors from …
Much ink has been spilled on the pros and cons (mostly cons) of the new breed of leveraged ETF’s that burst on the scene in the past year. They have quickly become a day trading favorite, with some of the ETF’s turning over tens of millions of shares a day. …
Today’s pick is another calender spread, this time with Intuitive Surgical (ISRG). For those who don’t keep up with cutting edge, flesh slicing robots. . . . ISRG makes cutting edge, flesh slicing robots. Seriously, they are the largest player in the fast growing field of robotically enhanced surgery. With …
Today we are going back and adding another position to keep our first Boeing position company. Why today? Well, the stock is pulling back a bit, which should give us a better price. Also, we are buying leaps (Jan ‘11) which means the options are not going to be that …
For today’s pick I’m going to use a plain vanilla calender spread. This is just a simple bet that the stock — in this case Mastercard — is not going to move all that much in the near term. This trade is not likely to be a huge winner (%100 …
Writing covered calls is one of my favorite ways to invest. The risk profile is more conservative than a straight stock buy, and time decay is on your side. There is just nothing better than watching your callers expire worthless as your stock keeps chugging higher. Like any option strategy, …
Today’s option pick illustrates two very important principles in options investing. The first is that there aren’t any bad stocks, just bad risk / reward ratios. The second is that implied volatility is critically important, and this factor alone can make or break many trades.
AIG would seem to be a …