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Weekly Update#132: Fri 5/18/2012 Latest Alerts#373: Thu 5/17/2012 We bought the June $150 Calls at $2.93. They are now at $4.35 for a gain of $1.42 or 48.46%. Sell for a gain. ~more~ #372: Wed 5/16/2012 Sometimes you look at a stock after it has corrected and say,"...this is stupid cheap". We are there on ... ~more~ Options Activity#231: Mon 5/14/2012 Tonight we have sorted by the heaviest options volume. The leader was CHK followed by XOM. ~more~ Latest Alerts#373: Thu 5/17/2012 We bought the June $150 Calls at $2.93. They are now at $4.35 for a gain of $1.42 or 48.46%. Sell for a gain. ~more~ #372: Wed 5/16/2012 Sometimes you look at a stock after it has corrected and say,"...this is stupid cheap". We are there on ... ~more~ #371: Wed 5/16/2012 A week ago we noted that the United States Oil Units (USO) were oversold on a daily and weekly basis. We noted that, "We know or have strong conviction that it will recover or have a several day rally but we are just not sure when. Therefore, we are going to write a calendar call spread." We remain oversold and there is a risk of a further drop from here therefore we are going to lock in part of our gain. ~more~ #370: Wed 5/9/2012 We will set up a calendar call spread in the energy space. Sell the May ... ~more~ Latest Updates#132: Fri 5/18/2012 #131: Wed 5/2/2012 #130: Wed 4/25/2012 #129: Wed 3/21/2012 Options Activity#231: Mon 5/14/2012 Tonight we have sorted by the heaviest options volume. The leader was CHK followed by XOM. ~more~ #230: Fri 5/4/2012 Stocks that interest us with heavy call buying include ANR, EP, ESV, RIG and XOM. Heavy put buying in ... ~more~ #229: Wed 5/2/2012 Stocks that interest us with heavy call buying include ABX, NEM and GG. ~more~ #228: Tue 5/1/2012 Stocks that interest us with heavy call buying include WPZ, WFT, SE ... ~more~ Video - CNBC interview with KudlowEducational 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~ |
