Volatility scares investors, as it usually rises sharply when the stock market is falling.However, savvy investors and options traders love volatility as they can profit faster from the stock market’s random movement. There are many ways to profit from volatility, and pure stock investors might take the opportunity to buy undervalued stocks cheap when the market falls irrationally on news more »
MARISSA MAYER TRADES: BULL PUT TRADE VS. LONG CALL TRADE Marissa Mayer caused a controversy in February this year when she changed Yahoo’s policy of allowing its employees to work from home. While it likely caused much consternation for employees who telecommuted, it was hailed by some (including Mayor Bloomberg) as a good move. In making the change, Mayer cited more »
In the last two trading sessions, gold prices have dropped dramatically – as of this writing $GLD is down over 12% (151.05 on 4/11/2013 to 132.05 intraday on 4/15/2013). Speculation runs rampant as to what has caused the drop in gold prices, gold stocks, gold futures, and all things gold. Some blame the drop on Cyprus selling gold, some on more »
Bull Put Spreads offer options traders an opportunity to put the ‘greeks’ on their side when the opportunity arises. As exemplified in this current case, when a stock appears to make a bullish breakout, the bull put credit spread aligns delta, vega and theta to make profit quickly. As noted in my essay on Winning Trading Strategies, the essence of successful stock more »