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Know Your Options: Archive

David Borun

A Strategy for a Nascent Rally and High Volatility

Here's an options-based alternative to going all-in.

AAPLPositive Net Change

David Borun

Know Your Options - Mailbag Edition

A reader has questions about implied vols, spread prices and executions.

SPYPositive Net Change

David Borun

Confused About the Direction of the Markets? You Might Want to Own Gamma

Owning calls and puts give you opportunity to profit from volatility in either direction

SPYPositive Net Change

David Borun

Index Options: Cash-Settled vs. Stock-Settled

With multiple choices for trading index options. Which should you choose?

SPYPositive Net Change CMEPositive Net Change CBOEPositive Net Change

David Borun

Tech Stock Declines are a Put-Selling Oppurtunity

Recent declines in Apple and Facebook have implied volatilities and option premiums high

FBPositive Net Change AAPLPositive Net Change

David Borun

There's No Such Thing as Free Money

The collapse of Optionseller.com is a stark reminder of how risky some strategies can be

LRCXPositive Net Change

David Borun

Should We Be Worried About a Spike in the VIX?

An increase in options prices isn't generally as scary as it might look

CBOEPositive Net Change

David Borun

How You Close a Trade Can Be Just as Important as Trade Selection

Preserving profits and mitigating losses is crucial to getting the best possible returns when trading options

TSLANegative Net Change

David Borun

Know Your Options - Closing a Trade

David Borun goes over the best methods for closing a trade. Despite how your original thesis was correct, or incorrect.

David Borun

One Last Chance to Capitalize on High Volatilities During Earnings Season

Implied Volatilities in Apple are high going into earnings

MSFTNegative Net Change GOOGPositive Net Change FBPositive Net Change AMZNPositive Net Change AAPLPositive Net Change

David Borun

When Markets Fall, Pay Attention to Implied Volatilities

Vols are on the rise, but how long can they stay this high?

CBOEPositive Net Change

David Borun

What Do Options Trading and Baseball Have in Common?

How to make less risky options trades during periods of high volatility

FBPositive Net Change

David Borun

Buy Puts for Protection? Not so Fast...

After a decline, high implied vols make options expensive

CBOEPositive Net Change

David Borun

As Tesla Volatility Ebbs, Take profit and Reduce Risk

Taking the oppurtunity to buy back short options inexpensively can change the risk profile significantly in our favor

TSLANegative Net Change

David Borun

An Option Trade for Tesla's "Make or Break" Quarter

A ratio bull spread will pay off if Tesla turns the corner in Q3

TSLANegative Net Change

David Borun

What's Happening to Option Prices During the Tilray Short Squeeze?

A tiny public float and a short squeeze result in very strange-looking options prices

TLRYNegative Net Change

David Borun

AMD Update: "Up and Out" is Not a Good Idea Here

This trade worked so well so quickly that it's time to simply take the profits.

AMDPositive Net Change

David Borun

Be a Contrarian and Sell What Others are Buying

Big Demand for Calls in AMD sets up a nice Buy-Write Opportunity

INTCPositive Net Change AMDPositive Net Change

David Borun

Rolling Up and Out on Covered Calls

Moving short calls to a higher strike in a different month

AAPLPositive Net Change

David Borun

Using Limit Orders on Longshot Options Trades

"Play with the market's money" by taking half of your gains

SODANo Net Change PEPPositive Net Change CMEPositive Net Change CBOEPositive Net Change

David Borun

A Limited Risk Strategy for Nvidia Earnings

A short-term iron butterfly will pay off if Thursday's earning announcement fails to move the stock

NVDAPositive Net Change

David Borun

What Do Options Prices Reveal About a Potential Tesla Deal?

The options markets can give us an indication of the probability of a buyout deal actually occurring

TSLANegative Net Change

David Borun

An Options Strategy for Papa John's

Shares are tumbling after the board of directors adopts a "poison pill"

WENNegative Net Change PZZAPositive Net Change DPZNegative Net Change

David Borun

Options Trading Around Earnings Not a Zero-Sum Game

The timing and placement of hedge trades is just as important as the initial options trade

NFLXPositive Net Change

David Borun

Protecting Your Portfolio with Options in Uncertain Markets

In a market that's struggling for some direction, protecting your profits might be a good idea.

MUNegative Net Change