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Weekly Update#089: Mon 7/26/2010 Latest Alerts#267: Mon 7/26/2010 Last week DO and SLB saw earnings announcements that were less than stellar and the stocks sold off. This will be the trend this quarter for drilling names and as such we will establish a put spread in... ~more~ #266: Wed 7/21/2010 Hedge for GEA, Not GEO ~more~ Options Activity#147: Mon 7/26/2010 In the volume leaders, these names saw unusual call action... ~more~ Latest Alerts#267: Mon 7/26/2010 Last week DO and SLB saw earnings announcements that were less than stellar and the stocks sold off. This will be the trend this quarter for drilling names and as such we will establish a put spread in... ~more~ #266: Wed 7/21/2010 Hedge for GEA, Not GEO ~more~ #264: Wed 7/7/2010 The spread is now worth $2.40. Sell the August $96 calls and buy back the August $100 calls. The $96 calls are worth $8.40 and the $100 calls are at $6.00. The spread is worth $2.40 so the gain is $0.40 or 20%. ~more~ Latest Updates#089: Mon 7/26/2010 #088: Fri 7/2/2010 #087: Tue 6/22/2010 #086: Thu 6/17/2010 Options Activity#147: Mon 7/26/2010 In the volume leaders, these names saw unusual call action... ~more~ #146: Tue 7/6/2010 Our screen tonight looks at those stocks with unusual options activity relative to the twnety day moving average. ~more~ #145: Thu 7/1/2010 Sorted by the 20 day average of option volume. ~more~ #144: Wed 6/2/2010 Several stocks saw heavy options activity against their twenty day moving average and had excess call to put action. ~more~ Video - CNBC interview with KudlowVideo - PBS interview with James DiGeorgiaEducational ArticlesThe Repair Trade: a First in a Series of Videos We would like every trade to be a winner, but sometimes even a good trade can go bad. We are going to go back and look at a trade and see where it went wrong. We will then figure out a strategy on how to fix this trade. ~more~ Advantages of Call Options Over Stock Options were originally created to hedge or avoid risk. By purchasing or selling options, you can custom tailor the profit and loss profile of your holdings which is something that long stock holders cannot do. ~more~ Why all the Excitement about Options? While there are numerous advantages to options, most can be grouped into one of three categories. First, significantly less money is spent to gain control of stock. Second, investors can alter the profit and loss profiles to accept or reject particular risks. Third, investors can profit from a lack of movement in the stock, which is certainly something that cannot be done with stock ownership. Let's take a closer look at each of these reasons in turn. ~more~ Education Corner, Options - There's Risk in Reward Over the past few months, I've presented some hedging ideas and strategies for retail investors. Many of the questions I receive have a similar tone where people ask things like, "Wouldn't it be better to buy the $50 call instead of the $55?" or "Wouldn't it be better to sell a higher strike put so that you get a bigger credit?" While these are great questions, there is one simple way to answer them all decisively — by understanding the elusive concept of risk versus reward. ~more~ |
