Options 101

Options Expiration – Dreams Die Hard

Options expiration can be difficult for traders. They either love it, hate it, or are neutral and miss the action. Find your attitude and trade accordingly.

Volatility Decline Impairs VIX, VXZ Premiums

The CBOE Volatility Index (VIX) has dropped as volatility in the S&P 500 Index has declined. Premium in VIX futures like the VXZ and the VXN have also dropped.

Buy Express Scripts Calls for a New High

The pharmacy benefit manager Express Scripts (NASDQ: ESRX) offers call option buying opportunities before it reports earnings this Wednesday.

Making Money with Options

A measured approach to options trading works best with options offering leverage, income, and hedging benefits to investors’ portfolios.

Vegas Sands Sandbagged in Options Action

Las Vegas Sands (NYSE:LVS) saw large option trading volume today, along with United Rentals (NYSE: URI), and Radioshack (NYSE: RSH). The CBOE Volatility Index (VIX), traded down to 16.20.

VIX Concepts often Miss the Volatility Boat

The CBOE Volatility Index (VIX) moves in opposition to the market, with a roughly -.66 correlation. Implied volatility is currently high compared with historic volatility.

10 Option Trades for Emerging Markets

Options traders can find many emerging market opportunities with such ETFs as the MSCI Emerging Market Index (NYSE: EEM), and the FTSE China 25 Index Fund (NYSE: FXI).

Coke Call Options Look Sweet

Coca-Cola Co. (NYSE: KO) stock should rise next week after earnings, sending its March call options higher. Coke should rise after a January down turn.

Citi, GE, Costco Lead Options Trading Action

Option trading volume mild but some action in General Electric (NYSE: GE), Costco (NASDAQ: COST) and Citi (NYSE: C). JA Solar and SunPower are hot.

6 Reasons to Sell Covered Calls as Bulls Rule

Selling covered call options in a rising market makes sense in certain situations. An over-priced stock, pending news, and profit-taking are reasons for selling.

Hedging VIX Volatility an Advanced Strategy

The CBOE Volatility Index (VIX) has become volatile again following Egyptian street demonstrations. Traders are seeking ways to insure their portfolios.

YUM!’s Real Beef May Be in its Earnings

Restaurateur Yum! Brands (NYSE: YUM) looks to report pretty good earnings Wednesday despite recent meat uproar. Buy the Feb call options.

Smart Advice Works for All Traders

Traders of all experience levels should not assume that options trading advice is a waste of time. Incorporate helpful ideas without brushing them off.

Rambus Iron Condor Option Could Fly

An iron condor options trade is a strategy that works with range-bound stocks such as Rambus (NASDAQ: RMBS). Trade the March expiration options to generate revenue.

Egypt Gives VIX a Volatility Rush

The CBOE Volatility Index (VIX) exploded in response to riots in Egypt, along with option traders covering their short sales.

Fear is Back in Options as VIX Jumps

Options volume was heavy and the CBOE Volatility Index (VIX) rallied as investors sold off the market due to Egyptian riots.

4 Oil Industry Calls to Buy

Option traders can profit from oil industry earnings reports from Marathon Oil (NYSE: MRO) and Tesoro (NYSE: TSO).

Time for Put Options on High-Flying Netflix

The cult around Netflix (NASDAQ: NFLX) suggests it is time for contrarians to buy put options to profit from a coming decline in customers.

KB Homes, Pfizer Lead Options Trading

Options volume steady today with Pfizer (NYSE: PFE), KB Homes (NYSE: KBH) seeing action. VIX down and China-Biotics (NASDAQ: CHBT) sell off continued.