Whether it is because of the smaller exposure they afford or the finer tuning of risk management they provide, mini and micro contracts have proven to be popular with both novice and experienced traders.
The concept of a “jobless recovery” is a bad joke, and the true unemployment and “underemployed” figure is closer to 17%. The “house of cards” is going to collapse at some point and I suggest strongly the implementation of protective strategic hedging programs.
The Brent vs. West Texas Intermediate oil spread came in to the lowest level in three years. The reason is clear. Based on global economic data most of the demand for oil is going to be in the United States as compared to a weak Asia and Europe.
The biggest reason for being bearish Netflix is the high price-to-earnings ratio at which they are currently trading. The high operational costs of the company and its very low profit margins do not justify such irrational exuberance.
Suppose Apple or some other big stock is going into earnings. You want to take a directional shot, but you don’t want to commit the large amount of capital that is required either for a stock purchase or as margin for a short sale.