Options Trading

Favor Calls, But Don’t Forget Puts

Markets are gaining strength as investors rotate into more risk, so you should favor calls, but still take advantage of cheap puts. Here's one potential trade:

Nasdaq Revisits a Crucial Crossing

Can it break through its new resistance level? Investors with overly bullish portfolios seeking a few hedging ideas might consider entering bear call spreads.

Get Into Netflix, Then Get Right Out

Netflix remains in a long-term bearish quagmire, but investors have time for a quick bullish strike. Use this options trade to reduce your risk.

2 Bullish Insurance Options

Insurance stocks are primed to do well this quarter. Aetna and AIG are two front-runners with exciting call options.

Three Bearish Plays for January

These puts on 3M, Canadian National Railway and Ralph Lauren with a January expiration give you plenty of time to see profits.

Take Flight With an IWM Condor

The Russell 2000 has sustained a beating, but a short-term recovery might be in the offing. Switch to a more neutral stance on IWM with this options spread.

Tapping BofA’s Upside Potential

Bank of America calls are a great way to take advantage of positive earnings from big-name banks like JPMorgan Chase and Wells Fargo.

Avoid Pharma Options — Except for This One

Most of the big pharmaceuticals are either in a downtrend or have reached a plateau. Lilly is the outlier worth trading calls on.

Walmart Is Chugging on All Cylinders

The discount retailer is making all the right moves, and its stock is approaching blue-sky territory. This long-call play looks to capture a chunk of that upside.

Use Puts Within a Bullish Portfolio

This week's dip should be short-lived, but a healthy smattering of puts are appropriate in case the weakness continues.

Use Options to Play China’s Resurgence

A look at the technicals suggest the recent climb may be just the beginning for FXI.

Sector Rotation Strengthens Steel Stocks

A seemingly short-lived market correction is giving strength to financials and basic materials. Make a rotation-based bet with this options trade.

Playing PetSmart As It Moves Up

Having just moved from the MidCap 400 to the more elite S&P 500, PETM could do even better. This covered call option strategy can tap that possibility.

Oil’s Roller Coaster Creates Cheap Options

Higher volatilty makes options on USO quite appealing right now. Here's one way to play this rare occurrence.

What’s Tanking in the Market and Why

A glut of earnings warnings have set a bearish tone in the market. Here's a look at what assets are struggling.

Time to Bet Against General Motors

This long put trade is based on GM's recent chart movements. Having formed a double top, the odds of a move lower just got better.

Go Both Ways After the TBT Reverse Split

Now that the TBT's share price has returned to a respectable level, a number of options strategies are back on the table. Here's one for bulls and one for bears.

AAPL Chart Exhibiting a Classic Breakdown

Apple (NASDAQ:AAPL) broke through the neckline of a head-and-shoulders on a breakaway gap.

Jump on These 5 QE Infinity Earnings Trades

Earnings season is coming up, and playing the options markets ahead of earnings is a good way to make money, so look to these 5 plays and come out ahead.