Wednesday, January 22, 2025
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.
Elon Musk pulling his offer for Twitter (TWTR) has been big news in the equities world. TWTR is now suing Musk for breach of contract (with the case set for October). Options traders may believe TWTR still has some upside though over the next year. A large options block trade executed last week suggests the […]
The iShares MSCI Emerging Markets ETF (EEM) is a very popular stock ETF which tracks companies in emerging market countries. The ETF is commonly used for asset allocation purposes in portfolios to gain exposure to the emerging markets asset class. Last week, a very large block trade occurred, which was likely a covered call trade. […]
Block trades can be useful in determining what smart money sentiment is on certain stocks. For example, a large put spread traded last week in Chewy (CHWY). The pet supplier site has seen its share price rebound off the lows in recent weeks. However, this recent put spread suggests there could be further downside ahead. […]
Once a popular meme stock, Bed, Bath & Beyond (BBBY) could be in trouble. The stock price has recently shot higher on news that insiders are buying the shares. However, a large purchase of put options that expire in January of 2024 suggests there could be significant downside in the stock. This put position will […]
There was quite a bit of unusual options action in the Energy Select Sector SPDR ETF (XLE) last week. Energy has been in the spotlight with the price of crude oil plunging in recent days. However, a large ratio call spread in XLE suggests that energy stocks may have more room to rise this year. […]
With interest rates moving higher, so are bond yields. However, bond funds still aren’t that exciting from a yield perspective. For instance, iShares 7-10 Year Treasury Bond ETF (IEF) has a dividend yield of only 1.5%. One way to boost the cash flow from popular bond funds like IEF is to sell calls against the […]
