Thursday, December 26, 2024
The economy may be improving, but last week’s Federal Reserve statement made it clear that there will be no tapering anytime soon. In other words, the Fed will continue to purchase bonds, and interest rates will remain near zero. It’s not all that surprising as the Fed has made it clear they don’t want to […]
It’s earnings season, so you know there’s going to be plenty of options activity. Last week, we saw blowout earnings from Facebook (FB), which is up to 3.5 billion users worldwide across its varies products. FB posted way better revenue and earnings than expected. A trader is attempting to profit from the good news using […]
When buying options, it’s generally a good idea to keep the capital outlay to a minimum whenever possible, because options typically lose value at a regular rate due to time decay. As such, minimizing the option premium paid (the cost) is essentially the same as lowering risk. Using vertical spreads is one way to take […]
After dropping out of the spotlight in recent months, option trading in Nikola (NKLA) is back. The electric truck designer is expecting to install hydrogen filling stations in CA, and the stock jumped nearly 15% on the day the news broke. Considering the company hasn’t produced anything meaningful to date, the crowd took this as […]
Shares of Levi Strauss & Co. (LEVI) recently broke out to a fresh 52-week peak following another solid earnings announcement. The company reported a first-quarter profit of $0.34 per share on revenue of just north of $1.3 billion. Wall Street was looking for a profit of $0.25 per share on sales of $1.25 billion. The […]
One active name in options this past week was Roblox (RBLX), a video game company that recently had its IPO. RBLX produces an extremely popular game that has shown very strong growth. The company recently partnered with Hasbro for physical toys as well. On a busy day last week, 85% of the options that traded […]
This past week, there was quite a bit of options action in Square (SQ). SQ has been a popular stock over the past year or so as one of Cathie Wood’s largest holdings in her ARK funds. The company is known for its payment processing business and also for its buy-in to the cryptocurrency industry. […]
Covered calls are one of the most popular investment strategies used by both retail and institutional traders. For retail traders, covered calls are easily accessible and don’t require a substantial amount of maintenance. For institutions, covered calls are beneficial both because they can scale into the billions of dollars and because they have long-term portfolio […]
Significant options volume showed up on earnings day last week for Micron (MU). The computer memory chip producer was up nearly 5% on better than expected earnings. That’s likely why 75% of the 335,000 options that traded that day were calls. Call activity tends to correlate with bullish activity in the stock. Several of the […]
Clean energy—whether in the form of solar, wind, electric vehicles, hydrogen fuel cells, or something else—has been discussed as an investment opportunity by financial talking heads for what seems like ages. Some of the industries mentioned above have gone through significant periods of growth. At other times, companies in these spaces have seen considerable volatility […]
