Trading Earnings on Williams-Sonoma (WSM) – Trade Closure

August 23, 2011

In continuation of our series on trading earning with options, I’ll describe here the closure of an earnings trade on WSM. I opened the WSM earning trade position yesterday with a short strangle, opened by selling options.  I sold 27 strike September puts for $1.00 and sold 34 strike September calls for $0.70. You can [...]

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Trading Earnings: Potential stocks for options earnings trades

August 21, 2011

Trading Earnings:  Option Strategy to Profit from Earnings Announcements Many option traders know that trading earnings provides significant profit opportunity. Watch the two videos below for a quick overview of how to select a shortlist of stocks for earnings trades.  I have found that earning trades are one of the most consistently profitable option trading strategies. [...]

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Straddle Option Strategies for Expiration Friday: AAPL, POT, GOOG

August 19, 2011

The Best Straddle Option Trades for Friday AAPL options, GOOG options and POT options make for the best straddle option trades this Friday.  The intraday straddle trade is a delta-neutral or direction neutral option strategy that will generate profit regardless of the direction of trade. The following is a brief analysis of the statistical evidence. [...]

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Earnings Announcements Trade: Marvell Technology Options Trade

August 19, 2011

Profiting From Earnings Announcements Earnings announcements provide profit opportunities for astute options traders.  The great thing about earnings announcements is that they are extremely well-defined events that are easy to measure statistically and upon which trading models can be built. Stock traders are at a disadvantage compared to option traders since stock trading relies purely [...]

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Option Adjustment: Trade Repair for RUT Iron Condor

August 12, 2011

Introduction to Option Adjustments Option trading offers a unique feature which doesn’t exist in the stock market – option adjustment. This means that you can actually “repair” your options position in response to changing market conditions.  Now be warned – this does not mean that you can always profit from options trading, far from it. [...]

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Apple (AAPL) Options Trade: Intraday Straddle using Weeklys

August 11, 2011

Transcript: Hi guys, I wanted to go over a potentially winning option trade for tomorrow using AAPL weekly options. Tomorrow is Friday 12th of August 2011… We’ve seen a  very volatile couple of weeks in the markets especially in the last week with the market crashing tremendously. For example you can see here, the SPY, S& P 500 index has [...]

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Tips on Intraday Straddle Trading in Volatile Times

August 8, 2011

Intraday straddle trading can be a great trading strategy.  It would seem that in such volatile times, with a major market correction underway (or some would say market crash), this would be ideal since we can benefit from the rising uncertainty which is reflected in volatility. However, in practice, in can be an extremely fickle [...]

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Priceline (PCLN) Trading Ideas – Long Intraday Straddle and Short Overnight Strangle

August 6, 2011

I’ve analyzed Priceline (PCLN) and my analysis has revealed that is a potential candidate for both intraday long straddle trading strategies and overnight short straddle strategies, particularly prior to the weekend. Intraday Trade using Long Straddle The chart above shows the price change in standard deviations using absolute value for Priceline in 2011.  Blue represents [...]

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Option Trading Strategy: Take advantage of the stock market correction

August 5, 2011

Intraday strangle / straddle using AAPL weekly options Wow! This week and yesterday in particular have taken us for quite a ride!  With most major indices crashing by at least 3% in one day, people have been taking their money off the market. Well, while most people shift their precious income to other assets, I’ve been busy [...]

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Intraday Option Trading Strategy using GOOG weekly options

August 1, 2011

The following is an analysis of a planned trade for tomorrow, using Google (GOOG) weekly options.  This option trading strategy makes use of the long strangle / long stradle. I’ve analysed multiple stocks and I’ve found that for the past year GOOG has tended to exhibit increased intraday volatility on Tuesdays in particular.  In fact, the [...]

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