Wednesday, March 5, 2025
As an active trader I’m amazed more people don’t trade options. Options not only allow you to lower your risk but also allow you the opportunity to mimic a stock portfolio, but with a lot less money. Now, who wouldn’t want to make bigger profits and risk less of their money? I take pride in […]
Last week, there was some unusually large options activity in Financial Select SPDR ETF (XLF). XLF tracks financial stocks such as banks and asset management companies in the S&P 500. On a particularly brisk day for options trading, XLF had about 2x more options volume than normal. A large chunk of the volume came in […]
An examination of implied volatility as it applies to the recent GME rally and crash.
Shares of Bank of America (BAC) reached “oversold” levels after falling for eight-straight sessions. It held its 50-day moving average while recently announcing fourth-quarter earnings. The chart below shows the RSI (relative strength index) for the stock recently hitting 40, as well as levels from late October. You will also see RSI reached 30 in […]
In investing, history can be a useful guide to what to expect moving forward. However, its usefulness only goes so far. There’s always something new and surprising in the financial markets that investors have never seen before. Last year it was negative oil prices. This year, it’s the stock squeezes occurring with names like GameStop […]
American Airlines (AAL) saw plenty of options action last week, along with several other stocks that have been heavily shorted. Airlines have struggled with the ongoing pandemic so they’ve attracted plenty of short-sellers. However, traders have been targeted these down and out stocks for heavy out-of-the-money call buying in an effort to squeeze the stock […]
Click the video above to watch Serge’s most recent market analysis
With stock market valuations sitting near 20-year highs, investors are hoping corporate results and profit outlooks will help determine to what degree the valuations are justified. The catalyst that will drive the market to higher highs over the near-term will be the current fourth-quarter earnings season that will carry over into mid-February and a month […]
Mobile video game maker Zynga (ZNGA) saw significant options activity last week. On a big volume day, ZNGA options traded 9x the normal options volume. 96% of the options action was in calls, which is generally a bullish sign. ZNGA has earnings on February 10th, and this could be a bet that the company is […]
To watch today’s Serge Berger Weekly options trade please click the video button.
