Options

How do you trade your opinion that a substantial move in either direction in a particular market is imminent?
Verizon options are among the most active by volume on Monday morning after a massive bullish spread was initiated in the January 2016 expiry calls.
How do you take advantage of a flat options skew?
Currencies from south of the border offer numerous opportunities for traders. Here, we look at the relationship between the U.S. dollar and the Mexican peso, Brazilian and Argentine currencies.
Option traders were clearly not set-up for a more than 30% surge in shares of Kraft (Ticker: KRFT) following a deal to merge the company with Heinz (Ticker: HNZ) to create The Kraft Heinz Co. On Tuesday, shares in Kraft closed at $61.33.
News that 148 passengers and crew were feared died following the crash of a Germanwings flight in a remote area of Southern France sent shares in Lufthansa (Ticker: LHA) down by about 3%. Germanwings is the low-cost subsidiary of Lufthansa, and shares in other budget carriers fell in sympathy.
Weekly options are one of the fastest growing products and can be used to create lower risk strategies; but for long-term profitability, you need to approach it as a business.
With stories and analysis pointing to fewer and fewer physical places to store crude oil coupled at the hip with an ever-strengthening dollar, it’s hard to get optimistic on the outlook for energy prices.
There is a big difference between prices of equally out-of-the-money call and put options. We call this price difference the skew. Here’s a trading system that profits from this relationship.
Shares in Lumber Liquidators continue to rebound and last traded higher by 11.2% at $36.40 following the company’s investor call on Thursday. Implied volatility on its options has fallen by 12.1% to 87.7% having reached 127% as a result of the recent scandal.