Options
Retail & Railroads: Options Recap

Retail & Railroads: Options Recap

Here's a breakdown of some big options spreads from Tuesday. Both reflected continued optimism about the economy. First, a put ratio spread in the SPDR S&P Retail ETF (XRT): A block of 50,000 27-July 48 puts was bought for $0.36. Some 100,000 27-July 47 puts were...

Traders Doubt Safety of Classic Safe Haven: Options Recap

Traders Doubt Safety of Classic Safe Haven: Options Recap

So much for utilities being a safe haven. The SPDR Utility Fund (XLU) has risen about 6 percent in the last month, making it the top-performing major sector. But yesterday, traders braced for a potential selloff: A block of 75,000 September 50 puts in XLU was bought...

Basics of Hedging, Part 2: Covered Calls

Basics of Hedging, Part 2: Covered Calls

Most investors know that volatility can inflict pain on even the best holdings. So today we're continuing a series of posts on using options to hedge. Last time we considered buying puts for protection. Today we'll look at selling covered calls for protection. Owning...

Traders Think Mega Bank Is Boxed In: Options Recap

Traders Think Mega Bank Is Boxed In: Options Recap

The country's No. 2 lender was met with shrugs after raising its dividend last week, and now traders are looking for the stock to remain under pressure. Check out this giant transaction in Bank of America (BAC), the biggest in the entire options market yesterday: A...

Basics of hedging, part 1: Puts

Basics of hedging, part 1: Puts

Market volatility is one the biggest headaches for investors. You can make very good choices on stocks or exchange-traded funds (ETFs), researching the fundamentals and knowing their opportunities. But then a tornado of movement hits and all that hard work turns into...

Medical device giant targeted for breakout: Options recap

Medical device giant targeted for breakout: Options recap

Medical-device giant Medtronic (MDT) has gone nowhere for the last two years, but options traders are looking for a breakout. About 25,000 August 90 calls were bought on Tuesday for $0.74 -- pretty noteworthy for a company that averaged only 10,000 contracts per...

How a bull’s playing sneaker earnings: Options recap

How a bull’s playing sneaker earnings: Options recap

Last quarter iconic sneaker maker Nike (NKE) surprised to the upside. One big options trader seem to expect more good news  tomorrow night. Here's a breakdown of the complex, high-risk complex strategy that appeared yesterday afternoon: 4,100 6-July 73.50 calls were...

Options action: How red can a blue chip get?

Options action: How red can a blue chip get?

Disclaimer: This post is intended for educational purposes and is not a trade recommendation. Options trading may not be suitable for all investors. It was once the world's biggest company, but bears are circling. General Electric (GE) got cut in half last year, and...

Oil bears double downside bet in key ETF: Options recap

Oil bears double downside bet in key ETF: Options recap

Disclosure: This post is intended for educational purposes only. Options trading may not be suitable for all investors. We just wrote about the drop in oil as the market braces for potential supply increases at next week's OPEC meeting. Almost simultaneously, a big...