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Options confuse a lot of investors because several factors impact their value. Unlike stocks, they don't just go up and down based on supply and demand. This post will explain three of the most important concepts you need to get started: time, volatility and intrinsic...
Trading volumes surged across the energy space yesterday after a drone attack clobbered the heart of Saudi Arabia's oil industry. Crude oil futures (@CL) traded more than 1.3 million contracts, the busiest session in at least a decade. Several other securities...
Stocks keep grinding higher, and one trader is inching up protection on the small-cap index. Check out this morning's options activity in the iShares Russell 2000 ETF (IWM): 52,825 September 145 puts were sold for $0.1252,825 September 142 puts were bought for...
While options can be traded by themselves, investors often use them in conjunction with other securities. So before going further, let's consider the four basic ways that options trades are structured. You Can Trade Options by Themselves As we learned in a previous...
Most clients understand buying and selling stocks. Options are similar, and can be traded in the same brokerage accounts. However, you should know some basic differences. Bid / Ask Spreads Matter A bid/ask spread is the difference between where you can sell a security...
Options are an increasingly important tool for retail investors. They can either replace trading shares, or make it easier to position yourself in stocks. Let's consider the first things you need to know. An Option's Price Is Usually Called 'Premium' There are some...
The big story today is that weak economic numbers overseas caused the yield curve to invert. That means the yield on 10-year Treasury bonds fell below the two-year rate. Stocks, especially financials, are crashing as a result. The "inverted curve" is a potentially big...
Have gold miners gone from safe havens to risky stocks? One options trader seems to think so. Put volume is surging to a 4-1/2 year high in Newmont Mining (NEM), the world's biggest gold producer. Traders started buying the 23-August 37 puts shortly before lunch,...
Some big options traders seem to think the pain may continue in emerging markets. Two large strategies were detected today in the MSCI Emerging Markets ETF (EEM), which is heavily concentrated in China and East Asia. One will profit from the fund dropping further,...
Someone's looking for a major trucking stock to keep motoring higher. Check out Monday's activity in Knight-Swift Transportation (KNX), the country's largest operator of tractor trailers: A block of 25,000 September 35 calls was bought for $3.36.A block of 25,000...