In the right cases, absolutely! For fast-moving companies, whether up or down, options trading offers superior returns to owning stocks. Offering higher percentage gains at a lower cost to stocks, options are well worth the few potential dangers that work against them. We’ll delve into the pros and cons of stocks versus options so you […]
On average, the stock market returns about 10 percent annually before inflation. While individual stocks can vary wildly, that beats the average returns against bonds or other asset classes. That’s especially true with annual interest rates back at zero percent. But here’s the beauty of that average return: If you keep your profits in the […]
Multiple options trades on Apple (AAPL) suggested a potential decline in shares. Of the trades made with high volume, the most interesting was the July 2020 $265 put option.
That trade saw a six-fold rise in volume with nearly 600 contracts trade. Shares trade around $280, implying at least a $15 per-share downside, or about a 5.3 percent drop.
With 212 days until expiration, any move down in Apple shares would allow the option to rally, giving traders a tidy profit.
The April 2020 $115 put options on Procter & Gamble (PG) saw a nine-fold surge in trading volume, from 174 contracts to over 1,500.
Shares of the consumer goods company would need to fall by about $5 for this option to move in-the-money in just under six months.
This kind of bet is a sign of hedging activity, given the small size of the potential pullback, and the timeframe on the options.
The November 15th $98.50 call options on Twilio (TWLO) saw over 8,400 contracts trade, a 44-fold explosion in volume from the prior open interest under 200 contracts.
The option, expiring in two days, is about 5 percent out-of-the-money and thus on track to expire at zero. The call buyer expects some kind of move higher, and the call seller expects shares to stay under the strike price.
Shares of the cloud communications company fell nearly 3 percent on Tuesday, following a report that one of their biggest clients, WhatsApp, was shifting to other vendors.
Richard Kinder, the billionaire founder and Executive Chairman of Kinder Morgan (KMI), recently bought 300,000 shares. At a cost of just over $6 million, the buy only increases his stake by about 0.1 percent.
Insider data for the company as a whole shows major regular buys from Kinder, but more mixed results from other executives, including a few sales in the past year. On total share count, however, insiders are buyers far more than sellers.
Kinder Morgan is an energy infrastructure company with a focus on pipelines that transport oil and natural gas. Shares have beaten the S&P 500 Index by 5 points in the past year, and the company has returned to profitability after the slump in energy prices led to a cut dividend.
Investors are anxiously seeking novel ways to ramp up their portfolio option trading for income in today’s ultra low rate environment. The most popular way to ramp up your income by using options is writing covered calls. Covered call writing means selling calls protected by stock held in your portfolio. This is why the sold […]
Talk about a volatile stock market! The current high levels of volatility have forced many investors to look outside the box for consistent profits. One of the best ways to trade stock are using the volatility to their advantage is via a variety of option strategies. Here are 5 easy to understand and execute option […]
There are three words to describe the goal of every long-term stock investor. Those three words are income, income, income. Income in the form of dividends is often what differentiates a winning long-term stock investor from just an average buy and hold stock market player. You see, dividends are the difference between outsized returns and […]
How would you like to guarantee that you will purchase stock at whatever discount you want, or get paid for making the attempt? Sound like a cannot lose situation? It certainly does! When I was first exposed to this idea, it seemed too good to be true. A nearly magical technique for finally being able […]
