Tuesday, November 26, 2024
The pandemic-triggered shutdown of a large portion of the global economy forced many companies to cut dividend payments, or at least stop growing their dividend rates, for most of the last year and a half. Although we now seem to be in a reopening phase, I sense a reluctance from Boards of Directors to bring […]
Two of the big COVID vaccine producers, Moderna (MRNA) and Pfizer (PFE), saw a significant amount of options activity last week. On one day, with MRNA down nearly 6%, its options traded 4x the normal volume. Most of the activity was still on the call side of things though, which tends to be a bullish […]
Some of the best options trading opportunities can be found in wildly oversold stocks. Look at Activision Blizzard (ATVI), for example. ATVI gapped from a high of $91.40 to a low of $78 on fears of litigation and a potential Chinese crackdown on video games. To me, that pullback was overkill—especially at a time when […]
An option premium is the money you earn for selling an option. Read on for a better understanding of premiums and what drives their pricing.
I’m still on vacation… but with the recent rally in cryptocurrencies, I’m digging into some charts on them. With Bitcoin, Ethereum and others, there are no “fundamentals” to study. Meaning, all we have is the chart to predict where we think these prices could go. Right now, they’re rallying strong… And going into the fall, […]
The Biden administration recently indicated they want 50% of all vehicle sales by 2030 to be zero-emission—i.e., electric cars. While I am skeptical that Americans will be willing to buy that many electric vehicles, my thoughts today concern what companies will profit from the electrification of the U.S. vehicle fleet. And it’s worth noting that […]
At some point, everyone makes mistakes when trading options—even the pros. However, as long as you’re aware of them, you’re less likely to repeat the same mistake over and over again, ad nauseum. Error No. 1: Not Having a plan One of the worst things any trader can do is trade without a plan. Without […]
Hostess Brands (TWNK) is an iconic brand that has been around for decades and is the reincarnation of the old Hostess Brands. Some of its best-selling products include: Twinkies, Ho-Hos, Hostess Cupcakes, Ding-Dongs, as well as breads and cookies. Which filed for bankruptcy in 2012. A couple of years ago, Hostess Brands bought Voortman Cookies, […]
Covered call trading is a commonly used strategy to generate cash flow and help normalize equity returns. A multitude of research suggests a basic covered call trading plan, from a risk-adjusted standpoint, outperforms long equities. However, covered call trading can be used situationally as well. There are times when short-term overwriting can be a powerful […]
Wouldn’t it be nice to collect dividends every single day? That’s exactly what some traders aim to do. Unlike regular dividend investing, which is focused on long-term stocks, some traders try to profit from holding stocks for short periods, just enough to pocket the dividend. This is known as the dividend capture strategy. In this […]
