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Weekly Update#124: Fri 1/27/2012 Latest Alerts#353: Thu 1/26/2012 We will establish a call spread in the oil service space. Buy the ... ~more~ #352: Wed 1/18/2012 On January 3rd, we recommended the February $97.50 Calls for $4.50 a call. The gain is now $0.90 or 20% and we will lock in our gains. ~more~ Options Activity#219: Fri 1/27/2012 We note that in our review of most active call options from Thursday there was heavy call action in .. ~more~ Latest Alerts#353: Thu 1/26/2012 We will establish a call spread in the oil service space. Buy the ... ~more~ #352: Wed 1/18/2012 On January 3rd, we recommended the February $97.50 Calls for $4.50 a call. The gain is now $0.90 or 20% and we will lock in our gains. ~more~ #351: Thu 1/12/2012 Finally the cold weather and snow are starting to blanket the United States. Therefore, we will buy calls in a natural gas play. We will take a long term view on this trade. ~more~ #350: Tue 1/3/2012 Our first buy of 2012 is a February Call in a well known large cap Energy name... ~more~ Latest Updates#124: Fri 1/27/2012 This morning there are rumors that Molycorp (MCP) could be taken over. We are not a fan of rumors as they rarely pan out. However, we need to be aware of such rumors. We own the ... ~more~ #123: Thu 1/19/2012 #122: Mon 1/9/2012 #121: Thu 12/29/2011 Options Activity#219: Fri 1/27/2012 We note that in our review of most active call options from Thursday there was heavy call action in .. ~more~ #218: Wed 1/25/2012 Several stocks are of interest on the call side tonight. This is a constant source of our idea generation. ~more~ #217: Wed 1/4/2012 We note that in reviewed the most active call options only FCX and POT saw more puts trade than calls. ~more~ #216: Mon 1/2/2012 Another favorite screen of ours is to look for stocks sorted by volume. High volume names included ... ~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~ |
