Here’s Why Boring Stocks Make Exciting Option Trades

Veteran option traders understand the concept well enough. While plenty of investors aim to avoid sea-sickening volatility from their long-term holdings, volatility is precisely what many option traders seek out. Volatility makes option prices move further and faster, in fact. Indeed, the whole point of the option Greek "Vega" is to let a would-be trader know how much an option's...

Here’s Why Boring Stocks Make Exciting Option Trades

Veteran option traders understand the concept well enough. While plenty of investors aim to avoid sea-sickening volatility from their long-term holdings, volatility is precisely what many option traders seek out. Volatility makes option prices move further and faster, in fact. Indeed, the whole point of the option Greek "Vega" is to let a would-be trader know how much an option's...

When to Buy Walgreens Stock and Its Near-7% Dividend Yield

— Walgreens stock trades at roughly 7 times management's new adjusted earnings outlook and has a 6.8% dividend yield. Here's what the chart says. — By Bret Kenwell, TheStreet.com Walgreens (WBA) stock is getting dragged through the mud after the drugstore giant reported disappointing fiscal-third-quarter results. While revenue of $35.42 billion grew 8.7% year over year (and topped expectations by...

Weekly Market Outlook – The Selling May Not Be Over, But That’s Not a Bad Thing

We knew the party had to end sometime. Last week was it. For the first time since mid-May the market logged a weekly loss, and last week's setback was the biggest weekly loss since March. And there may well be more downside in store. Before sweating the prospect too much though, know that there's still lots of room for stocks...

Weekly Market Outlook – The Selling May Not Be Over, But That’s Not a Bad Thing

We knew the party had to end sometime. Last week was it. For the first time since mid-May the market logged a weekly loss, and last week's setback was the biggest weekly loss since March. And there may well be more downside in store. Before sweating the prospect too much though, know that there's still lots of room for stocks...

Alibaba CEO Steps Down; Buy the Dip in the Stock?

— Alibaba Chairman and CEO Daniel Zhang will step down from his role and serve as CEO of the company's upcoming spinoff. Here's the trade. — By Bret Kenwell, TheStreet.com Alibaba (BABA) shares were in focus on Tuesday after Chairman and CEO Daniel Zhang said he would step down from his role. Zhang is stepping down to focus on the...

Not Every Option Trade Has To Be a Go-For-Broke Proposition

— For some traders it makes more sense to take on a little less risk in exchange for a little more certainty. — There's no denying most option traders are looking for big gains. That's exactly what options do, in fact — they turn a stock's or an index's move into something much, much bigger. The whole point is applying...

Not Every Option Trade Has To Be a Go-For-Broke Proposition

— For some traders it makes more sense to take on a little less risk in exchange for a little more certainty. — There's no denying most option traders are looking for big gains. That's exactly what options do, in fact — they turn a stock's or an index's move into something much, much bigger. The whole point is applying...

Is This Actually a New Bull Market? The Statistics Say Yes… Mostly

Despite Friday's swoon, the S&P 500 is now up 26% from its October low. That's a new bull market… at least by most traders' standards. Underscoring the argument is the fact that the S&P 500 has also punched through the falling resistance line that steered it lower all of last year. On the other hand, last year was a pretty...

Is This Actually a New Bull Market? The Statistics Say Yes… Mostly

Despite Friday's swoon, the S&P 500 is now up 26% from its October low. That's a new bull market… at least by most traders' standards. Underscoring the argument is the fact that the S&P 500 has also punched through the falling resistance line that steered it lower all of last year. On the other hand, last year was a pretty...
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