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Know Your Options: Archive

David Borun

Are You Paying Attention to Pin-Risk?

Understanding contrary exercise can help you find profit and reduce risk around expiration.

GMEPositive Net Change

David Borun

A Deeper Look at GameStop Options

Don't let the Fear of Missing Out encourage you to make dumb trades.

GMEPositive Net Change

David Borun

Reader Question on Negative Short Rates

Why long puts aren't a good alternative in a negative interest rate environment

CBOEPositive Net Change

David Borun

Contrary Exercise Brings Risk and Opportunity

The mechanics concerning which options are automatically exercised can mean the difference between profit and loss.

WFCPositive Net Change

David Borun

Does "Quadruple Witching" Create Options Trading Opportunity?

The inclusion of Tesla could mean big volatility during the biggest derivative expiration of 2020.

CBOEPositive Net Change CMEPositive Net Change TSLAPositive Net Change SPYPositive Net Change

David Borun

Do Hot IPOs Equal Hot Options Trading Opportunities?

It's been a great year for offerings, but be careful with these volatile new issues.

GOOGPositive Net Change GMPositive Net Change HLTPositive Net Change SPOTPositive Net Change DASHPositive Net Change

David Borun

Ten Monts Later, You Should Still Be Wary About Tesla Options...

Huge options premiums mean that trading Tesla calls and puts are like playing at the high-limit table.

TSLAPositive Net Change

David Borun

You Don't Need To Fear Option Assignments

The exercise of options you are short can actually be a blessing in disguise.

TSLAPositive Net Change

David Borun

Let's Take Another Look at Commodity Options

With demand concerns in Energy and a "flight to safety" in Gold, it's worth considering non-equity derivatives again.

ICEPositive Net Change CMEPositive Net Change

David Borun

Dirfferent implied Volatilities on Differnt Strikes. Why?

Modern options pricing models revolutionized speculation and risk-management, but they're also constantly evolving.

CBOEPositive Net Change

David Borun

What Does Implied Volatility Really Mean?

How to convert annual volatility figures on short-dated options contracts

CBOEPositive Net Change

David Borun

In Uncertain Times, Consider the Protective "Collar"

Protect your gains inexpensively with this spread fairly simple spread trade.

SPYPositive Net Change CBOEPositive Net Change

David Borun

Trading Options in an October Like We've Never Seen Before

The October baseball analogy is more appropriate now than it has ever been.

NFLXPositive Net Change

David Borun

SPACs and Direct Offerings Are Becoming More Common

Traders should adjust their assumptions about volatility in these new issues.

PGNegative Net Change NKLANegative Net Change

David Borun

What's the Correct Time Period for Your Options Trades

Long-term options come with complications you might not expect

CBOEPositive Net Change

David Borun

Why You Shouldn't Trade In-The-Money Options

Understanding option pricing mechanics will point you to more cost-effective alternatives

CMEPositive Net Change CBOEPositive Net Change

David Borun

Rising Volatilities Are an Opportunity

Volatility is uncomfortable, but you can make it work for you.

CBOEPositive Net Change

Daniel Laboe

The ABCs Of Option Trading & A Couple Simple Trading Tips

The world of investing & trading has been flipped on its head, and the rise of the pandemic trader has brought with it an idea that could be very dangerous

UBERPositive Net Change QQQPositive Net Change

David Borun

Apple Stock Split Prompts Significant Changes in the Dow

The world's most widely referenced stock market index will soon swap out 10% of its holdings

XOMNegative Net Change RTXPositive Net Change PFEPositive Net Change HONPositive Net Change CRMNegative Net Change AMGNNegative Net Change AAPLPositive Net Change

David Borun

When Share Prices Rise, So Do Options Premiums

Check the price of the straddle as a litmus test about what options are (or aren't) worth.

TSLAPositive Net Change MSFTPositive Net Change GOOGPositive Net Change AMZNNegative Net Change AAPLPositive Net Change

David Borun

Stock Splits Are Back in Fashion, How Are Options Afffected?

Most contracts are adjusted to minimize the impact of corporate actions

TSLAPositive Net Change GOOGPositive Net Change AMZNNegative Net Change AAPLPositive Net Change

David Borun

Have an Options Trade Idea, Backtest It

Examining how a similar trade worked in past periods can tell you if you're on the right track.

CBOEPositive Net Change

David Borun

Can a Two-Day Straddle Be Worth $220?

Heading into a crucial earnings report, Tesla options are on fire.

TSLAPositive Net Change

David Borun

Mailbag: Huge Hard-To-Borrow Rates Can Cause Huge Trouble

Early call assignment and high short rates turns a can't miss trade into big losses instead.

NKLANegative Net Change MSFTPositive Net Change AAPLPositive Net Change

David Borun

As Earnings Season Approaches, Consider Buying a Condor

If you think a stock probably won't move meaningfully, this is the trade you'll want.

DISPositive Net Change