Here’s an explanation of how the ratio write works to help you determine whether or not the strategy is a good match for your options trading.
Options Update: Volume Soars on Lowe’s Post Earnings
Following its fourth-quarter earnings announcement, option players took notice of Lowe’s which saw a flood of options activity on both the call and the put side of the coin. Here’s a look at how traders can make money on either of these positions.
The Forward Roll: Avoiding Option Exercise Indefinitely
Before entering into any option strategy, especially for covered call positions, traders should understand the rules. Here Michael Thomsett explains the forward rolling strategy
Options Update: Dell’s Earnings Call
Computer-maker Dell will find its way into the earnings spotlight this week as the company will let the Street know its quarterly results after the closing bell on Thursday. Here’s one potential strategy to get options traders on the right side of the trade.
Options Call on Google
Will investors jump ship in reaction to Google’s news to build a high-speed broadband network? Dan Passarelli gives us a hint as to the nature of the option activity on Google today.
The Mystery of Option “Extrinsic” Value
Once you understand what extrinsic value means in options trading, you will become better suited to manage risks more effectively. These tips by Michael Thomsett will help you to use extrinsic value to your advantage.
Options and the Dow’s Bearish Tone
There are lots of eyes on options activity, especially following the negative tilt of yesterday’s trading action. Read Dan Passarelli’s take.
Calculating Covered Call Profits – Not As Easy As It Sounds
Calculating profit is the best way to judge and compare trading performance. But sometimes, figuring out profits on option trades can be very much complicated. Michael C. Thomsett makes it easier with these few tips.
Dow: What’s the Next Move?
At Mid-week, the Dow walked right up to the 10,300 level and backed away. Could this level be a bit of a thorn in the side of the Dow in the coming two months?
What Options Say About the Dow
Was Monday’s rally a nice welcome back for our bull market, or was it the kind of day that will allow investors to get their hopes up? Find out more in Dan Passarelli’s options commentary.