Tuesday, March 4, 2025
I’m continuing to pound the table on the idea of selling options to generate income with volatility at its current level. The Cboe Volatility Index (VIX) continues to hover around 30, which is creating very interesting opportunities in options. Most everyone owns stocks. Therefore, the risk we all share is that the equity market could […]
Last week was a tough one for social media company Snap (SNAP), which missed badly on guidance. The company warned of challenging macroeconomic conditions ahead and the stock dropped over 40% the next day. The following day, the stock gained 10%, and a large investor bought 10,000 January SNAP calls. This seemingly very bullish trade […]
With my conservative investment strategies, I do not have much reason to worry about the current stock market correction. I know that if I accumulate dividend-paying shares for cheap while others are selling, my income and wealth will be much greater when the market recovers. And it always recovers. I am, however, concerned about a […]
Selling puts on the Proshares Ultra VIX Short-Term Futures ETF (UVXY) is one of my go-to trades when implied volatility is high and I think it will stay elevated in the near term. UVXY is supposed to correspond to 1.5x the performance of the S&P 500 VIX Short Term Futures Index. The short of it […]
Wow, what a week! For those whose portfolios are simply filled with long stocks, this has been a disastrous time. But for those who are swimming in cash, this is a great opportunity to make even more money by selling some options to take in the lofty premiums being priced into options due to fear […]
The market has been in a significant downtrend this year, but the ARK Innovation ETF (ARKK) has been hit even harder. ARKK is down 60% year-to-date as it holds some of the most speculative stocks from the past several years. However, several options trades last week appear to be from traders opening up bullish positions […]
Today we’re featuring Tim Melvin, the newest investing expert here at Investor’s Alley, here in Options Floor Trader. He brings 30+ years of investing experience and expertise in alternative strategies to create income and returns that don’t depend on the S&P 500 going up. Today, as markets are falling and fear is building, he has […]
One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor. An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss. A common […]
The market has been abuzz with the Elon Musk proposed acquisition of Twitter (TWTR). The company has agreed to be taken private by Musk at a price of $54.20 per share, but it could take several months to iron out the details. In the meantime, there has been a heavy amount of options trading on […]
Options block trades can be enlightening sources of information, especially when they occur in tiny stocks. Vroom (VRM) is a digital automobile dealership that has struggled mightily this year, down a whopping 85% year-to-date. The company is dealing with high costs and low margins. The options on VRM typically trade about 10,000 lots per day […]
