Publications

10/4/11 Weekly Briefing: Trading Alpha Options Neutralizes Bear Markets

The US economy is headed for a recession and that requires a completely different mindset for trading options. Also read about a new type of call option that can rise even when the underlying stock falls…. Read More

9/29/11 Trade Alert: A Precious Hedge–UPDATE

(updated with trade rationale) Sell Put Credit Spread on SPDR Gold Shares (NYSE: GLD) “Buy to Open” November $135 Put and “Sell to Open” November $143 Put Option Symbols: GLD111119P135 and GLD111119P143 Limit Order Price: Net credit of $1.35 or more ($135 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for […]… Read More

9/29/11 Trade Alert: A Precious Hedge–UPDATE

With October around the corner and Europe still a mess, it can’t hurt to have a little nugget of this low-beta insurance.
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9/27/11 Weekly Briefing: Portfolio Beta and Hedging Downside Risk

Political uncertainty on both sides of the Atlantic continues to mess with stock valuations. Learn how to hedge your option portfolio using beta and SPY put options. And Warren Buffett makes an astonishing announcement 40 years in the making.
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9/22/11 Trade Alert: Profiting from Mexico-U.S. Trade–UPDATE

(updated with trade rationale) Sell Put Credit Spread on Kansas City Southern Railroad (NYSE: KSU) “Buy to Open” December $40 Put and “Sell to Open” December $47 Put Option Symbols: KSU111217P40 and KSU111217P47 Limit Order Price: Net credit of $1.95 or more ($195 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options […]… Read More

9/19/11 Weekly Briefing: Positive Seasonality Trumps Time Diversification

Expect a high degree of stock market volatility over the next few months. Additionally, I explain why I rolled Health Care REIT and NetEase.com into October rather than December, answer more subscriber questions, and name my favorite OFI stock for the remainder of the year…. Read More

9/15/11 Trade Alert: October Rolls

(The rationale for these trades was discussed in this week’s briefing) 1. Vertical Roll on NetEase.com (NasdaqGS: NTES) “Buy to Close” September $48 Put and “Sell to Open” October $48 Put and “Buy to Open” October $41 Put Option Symbols: NTES110917P48 and NTES111022P48 and NTES111022P41 Limit Order Price for three-legged vertical roll: Net credit of […]… Read More

9/15/11 Trade Alert: Rolling One, Closing One

1. “Buy to Close” September $48 Put on NetEase.com (NasdaqGS: NTES) Option Symbol: NTES110917P48 Limit Order Price: $0.50 or less ($50 per contract) Directional View for Underlying Stock: Closing Position Options for Income Portfolio: Conservative Income I am not recommending selling to close the September $41 put as part of a spread because it is […]… Read More

9/13/11 Trade Alert: Rolling the House of Buffett

Sell Horizontal Spread on Berkshire Hathaway Class B (NYSE: BRK-B) “Buy to Close” September $80 Put and “Sell to Open” December $80 Put Option Symbols: BRKB110917P80 and BRKB111217P80 Limit Order Price: Net credit of $0.80 or more ($80 per spread) Directional View for Underlying Stock: Bullish Options for Income Portfolio: Conservative Income Approximate margin requirement […]… Read More

9/12/11 Weekly Briefing: How to Repair a Stock Position that’s Down

Europe remains a thorn in the side of the US, but slow growth without a US recession remains the likeliest scenario and stocks are cheap regardless. Learn three ways to use options to speed up the recoupment of trade losses and read the answers to a few excellent subscriber questions in this week’s Q&A.
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