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options: Archive

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.

SPYNegative 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.

PGPositive 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

CMENegative 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

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 RTXNegative Net Change PFEPositive Net Change HONPositive Net Change CRMPositive Net Change AMGNNegative Net Change AAPLNegative 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 MSFTNegative Net Change GOOGNegative Net Change AMZNNegative Net Change AAPLNegative 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 GOOGNegative Net Change AMZNNegative Net Change AAPLNegative 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.

MSFTNegative Net Change AAPLNegative 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.

DISNegative Net Change

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.

AAPLNegative 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.

HTZNegative Net Change

David Borun

Avoid the Pitfalls of Leveraged ETFs

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

SPYNegative 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.

SPYNegative 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.

SPYNegative 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.

CMENegative Net Change

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.

CMENegative 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