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Know Your Options: Archive

David Borun

Expiration Can Get Tricky, but Options are Still Very Understandable

As they are about to expire, making sure you know what's happening is one of the most important parts of trading options.

AAPLPositive Net Change

David Borun

Options on Bankrupt Hertz Provide Unique Risks and Opportunities

Extremely high volatilities and negative interest rates make trading Hertz options tricky.

HTZNo Net Change

David Borun

Avoid the Pitfalls of Leveraged ETFs

Futures and options help avoid the built-in disadvantages of leveraged ETFs

SPYPositive Net Change

David Borun

If You Liked the Straddle, You Should also Consider a Strangle.

A less expensive spread that benefits from market movement and a potential rise in volatility might be the right trade for uncertain times.

SPYPositive Net Change

David Borun

The VIX is not really a "Fear Gauge"

Though fear is one component of options prices, there's much more to it.

CBOEPositive Net Change

David Borun

With Precious Metals, Make Sure You're Not the "Greater Fool"

Some assets have true intrinsic value and some don't. Knowing the difference is important.

GLDPositive Net Change

David Borun

As the VIX Falls, It's Time To Consider Buying Options

With the VIX back at 30% even as uncertainty lurks, the Straddle is looking like a good bet.

SPYPositive Net Change CBOEPositive Net Change

David Borun

The Oil Price Plunge is an Opportunity to Learn About Options

Extreme situations like negative futures prices are an interesting way to learn about the mechanics of derivatives.

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David Borun

With Energy and Metals on the Move, Consider Commodity Options

Investors with and opinion on the direction of commodity prices should know all the facts before trading those options.

CMEPositive Net Change

David Borun

Put Protection is Too Expensive for Your Portfolio

High implied volatilities make buying option protection a poor idea right now.

CBOEPositive Net Change

David Borun

Equities Rally, but the VIX Remains High

Factors other than fear can often keep implied volatilities higher than you might guess.

CBOEPositive Net Change

David Borun

Know Your Options, Personal Story Edition

Two events, one today and one from 20 years ago help shed some light on recent market behavior.

LRCXPositive Net Change

David Borun

Coronavirus Causes a Volatility Spike. Time to Sell Options?

When traders scramble for protective options, your decision comes down to "trade or fade."

CBOEPositive Net Change

David Borun

Trading Options on Takeover Deals

Contracts are adjusted to minimize the impact, but corporate deals still present an opportunity.

MSPositive Net Change

David Borun

Should You Consider Trading Weekly Options Expirations?

More frequent expiration cycles allow traders to customize their positions, but also involve unique risks

CBOEPositive Net Change

David Borun

Why You Should NOT Be Trading Options on Tesla Right Now

Big moves, high volatilities and high "vol of vol" make Tesla options a real widowmaker lately

TSLAPositive Net Change AAPLPositive Net Change

David Borun

Call-Put Parity Reprise

The principle of call-put parity means calls can act like puts and vice versa.

CBOEPositive Net Change

David Borun

Call-Selling Terminology (Plus a Bit More on Call-Put Parity)

Selling calls can be a very effective strategy, but you might want to avoid in-the-money options.

CBOEPositive Net Change

David Borun

Don't Let Low Volatilities Lull You into a False Sense of Security

Unpredictable events are perpetually on the horizon, smart traders know how to survive them

CBOEPositive Net Change

David Borun

A Big Rally and High Volatilities Make Tesla a Candidate for Cash-Covered Puts

Those who missed the recent rally aren't totally out of the game

TSLAPositive Net Change GMPositive Net Change FPositive Net Change

David Borun

Back to Fundamentals to Start 2020

At the start of a new trading year, let's examine a basic topic that's important for understanding our trades to come this year.

CBOEPositive Net Change

David Borun

Tesla Collar Update

As the shares continue to rally, how can a trader make the right decision about what to keep and what to sell?

TSLAPositive Net Change

David Borun

Using Options to Lock in Tesla Gains

With a big winner on your hands, a collar can protect profits while still preserving potential

TSLAPositive Net Change

David Borun

Why Do Options on the Same Stock Trade at Different Implied Vols?

The normal distribution assumption in option pricing models doesn't accurately reflect real life

David Borun

A Different Take on a Popular Strategy

Options volumes may be a good signal, but not necessarily how you might think.