Monday, December 23, 2024
This strategy is… Selling Covered Calls. My readers and I enjoyed a 95% win rate on 47 trades last year because covered calls can be incredibly low-risk when done correctly. Lots of folks have a hard time believing my 95% win rate. So here’s my full trading record: If you look close, you’ll notice that […]
The last thing you need is more doom and gloom when it comes to the stock market. So if your trading account has taken a beating this year… I have some good news for you. I know it may sound hard to believe… After all, The Wall Street Journal and many other sites predict a […]
For this week’s intriguing options block trade, we’re looking at a massive trade put on in Warner Brothers Discovery (WBD). The trader or fund manager appears to have sold a huge call position that is potentially being used to finance (part of) an even bigger put position. This type of strategy is called a collar, […]
The most popular way for investors to trade small caps is through the iShares Russell 2000 ETF (IWM). IWM averages nearly 30 million shares traded per day, and over 750,000 options. Last week, a large fund or trader placed a block of nearly 50,000 puts in IWM that expire in October. These far-out-of-the-money puts could […]
Unusual options activity placed Energy Select Sector SPDR ETF (XLE) into the spotlight last week. It turns out a massive options trade of 150,000 contracts traded in a spread, with about $16 million of capital required. This one trade accounted for nearly half the options traded on the day. It appears the position may be […]
The iShares JP Morgan USD Emerging Market Bond ETF (EMB) is an asset allocation fund for those wanting exposure to emerging market government bonds. The ETF pays a reasonable dividend but it doesn’t generally move all that much. A well-capitalized trader is likely trying to boost returns on the low-volatility product by utilizing a covered […]
Hedging against downside protection can be expensive. Using options can alleviate some of the cost by utilizing a spread trade, such as a butterfly. A trader recently placed a large put butterfly on for August in SPDR S&P ETF (SPY) options. The trade only cost 20 cents in premium but could pay out significantly more […]
Using covered calls on index ETFs is a popular way to produce additional cash flow from holding stocks. For instance, the SPDR S&P 500 ETF (SPY) is not only the most heavily traded ETF in the world, but it’s also commonly used for covered call trades. A large block of covered calls seemingly traded last […]
One way to increase your cash flow from owning stocks is to write an in-the-money- covered call on a dividend stock. Last week, a trader sold a call on AT&T (T) that was below the stock price and doesn’t expire until next January. The purpose of the trade is to collect premium from the call […]
This week we are highlighting the most popular gold ETF which tracks the physical asset. What we see here are multiple trades placed in the same week by different traders. Both of these trades are indicating very bullish expectations from traders.
