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Know Your Options: Archive

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.

David Borun

Understanding Options During a Marijuana Stocks Rally

With pot stocks getting a boost from legalization efforts, understanding options is key to making the best value decision

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David Borun

Playing Offense when Volatilities are Low

With the VIX at 13%, it may be a good time to speculate using options.

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David Borun

Pay Attention to Hard to Borrow Rates, Even in Options Trades

The prices of traditional options strategies change along with interest rates

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David Borun

How to Replicate a Stock Postion Using Options

Options can be a way around account restrictions, but not negative interest rates

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David Borun

Selling Puts is not as Risky as it Sounds

In a stock you want to buy, selling naked puts is actually a less risky alternative

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David Borun

Looking for a Glimpse of the Future...In the Past

Another look at using historical data to analyze potential options trades

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David Borun

What do Baseball and Options Trading Have in Common

Answer: The stakes are higher in October

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David Borun

Open Interest in Options Influuences Stock Movement

The behavior of market makers often makes an underlying stock move in predictable ways.

CBOEPositive Net Change

David Borun

Rolling Covered Calls Up and Out

Maintaining a covered call position that's been working is as easy as knowing how to "roll" an options trade.

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David Borun

Volatilities Sink, How do we "Buy Low"?

We sold calls when implied volatilities were high, now it may be time to close those trades and buy downside protection.

CBOEPositive Net Change

David Borun

VIX Revisited and a Trade for Volatility Spikes

There's a smart way for the average investor to trade implied volatilities

CBOEPositive Net Change

David Borun

What is the VIX Telling Us About the Equity Markets?

The last time the VIX was this high, it was time to buy

CBOEPositive Net Change

David Borun

Spread Trade #8 - The Calendar

Buying or selling a calendar spread is a bet on a divergence between actual and implied volatilities

David Borun

Spread Trade #7 - The Collar

In volatile markets, a low-cost collar can protect a stock position

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David Borun

Spread trade #6 - The Strangle

Just like a Straddle, the Strangle is a bet on movement in the underlying stock and implied volatility

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David Borun

Spread Trade #5 - The Straddle

Trading calls and puts at the same time is a bet on both actual and implied volatility

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David Borun

Spread Trade #3 - Iron Butterflies (and #4 - Iron Condors)

We can generally recreate the butterfly and condor spreads at more favorable entry prices by making them "iron"

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David Borun

Spread Trade #2 -The Condor

Similar to the butterfly, the condor offers a wider range of profit opportunity

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David Borun

Spread Trade #1 - The Butterfly

Episode #1 in a series about common spreads

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David Borun

A Call is a Put and a Put is a Call - Even in Spreads

The principles of call-put parity apply to spread trades as well as individual options

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David Borun

Trading Options on Commodities

It's shaping up to be a wild Summer in commodities. Learn how the options markets work.

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David Borun

Shorting Beyond Meat? Be Careful...

Both selling the shares and buying puts mean paying hidden costs

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