Options
Key Things to Know About Volatility as Earnings Season Begins

Key Things to Know About Volatility as Earnings Season Begins

Earnings season is just getting started. This post will consider what it means for options, and how traders may want to position for the reports. Implied volatility ("IV") is the key term because it often declines after big events like quarterly results. Traders often...

Find Options Trading Strategies During Times of Volatility

Find Options Trading Strategies During Times of Volatility

Trading options? This spring brings new trading tools for constructing your trades in these volatile times. Today we'll show how to choose an options strategy in TradeStation Web Trading based on your market outlook. You can find option trades not only in up and down...

Understanding Volatility if You’ve Never Encountered It Before

Understanding Volatility if You’ve Never Encountered It Before

The last month has been one of the most volatile in the history of the stock market. Here are some things to know if you're new to investing and it scared you. Volatility Increases When the Market Drops Volatility measures how much stocks move. The more they jump...

One Mistake to Avoid if You Expect a Bounce at This Key Level

One Mistake to Avoid if You Expect a Bounce at This Key Level

The S&P 500 is trying to hold a key level as doctors talk about a potential coronavirus treatment. Is it market trying to bounce? If your answer is "yes," there's one potential mistake you might want to avoid: overpaying for call options. Several variables...

Here’s a Crash Course in Options Now that Volatility Is Spiking

Here’s a Crash Course in Options Now that Volatility Is Spiking

Stocks are crashing because of coronavirus. Volatility is spiking. What does it mean and how can you learn from today's crazy session? It's time for a crash course in options. Volatility and Options Volatility is the amount a stock or index moves. It's expressed with...

Options in These Two Tech Stocks Are Suddenly on Fire

Options in These Two Tech Stocks Are Suddenly on Fire

A pair of technology companies are suddenly on fire in the U.S. options market. International Business Machines (IBM) and Slack Technologies (WORK) and have both set records in the options market over the last few sessions. The surging activity is yet another example...

Are Bulls Coming Back to Ride-Sharing Stocks like Uber and Lyft?

Are Bulls Coming Back to Ride-Sharing Stocks like Uber and Lyft?

Ride-sharing stocks like Uber and Lyft struggled after IPOs last year. Yesterday, the bulls seemed to think both have turned a corner. UBER shot to a five-month high after Morgan Stanley said core profitability was improving and management shed a money-losing Indian...

Key Points About Selling Credit Spreads

Key Points About Selling Credit Spreads

The previous post covered debit spreads, when you pay a debit looking for a stock or ETF to move in a certain direction. Credit spreads are just the opposite, with traders collecting premium upfront in hope that the stock won't move a certain way. What a Credit Spread...

This Social Media Upstart Just Got a Lot of Attention in the Options Market

This Social Media Upstart Just Got a Lot of Attention in the Options Market

Suddenly the bulls are logging into Pinterest. The social-media upstart had record call volume yesterday as options traders positioned for a potential move higher. The activity came after a report showed growing user traffic. PINS' user base rose 9 percent to 82.4...

Key Points About Trading Vertical Spreads

Key Points About Trading Vertical Spreads

Traders often expect a stock will move higher or lower. But they might not be sure which strategy to use. Should they buy calls looking for a rally, or puts looking for a drop? Should they buy single options, or spread one contract against another? This post will...