Options Trading

By Keris Lahiff, CNBC Energy stocks are lagging the market again as the coronavirus outbreak spreads. The XLE energy ETF tumbled more than 1% on Friday, racking up a more than 4% decline for the week. Todd Gordon, managing director of Ascent Wealth Partners, warns to stay away from the group – he sees no end in sight to the sell-off. “Energy, in general, has been a no touch for us,” Gordon said Thursday on CNBC’s “Trading Nation.” “I want to focus in here on energy exploration … the XOP ETF has been clearly in a downtrend. We’re holding on for dear life below the $20 support, I think it gives way here.” The XOP oil & gas exploration ETF is down 14% this month and last traded at $20.30. There is one energy stock that Gordon would consider as having upside potential, though. “One name that I do like… more

FANG stocks as a group – Facebook, Apple, Alphabet, Netflix and Amazon – may be collectively up to the tune of 35% for the past twelve months, but they've hardly moved as a herd. Apple has carried far more than its fair share of the weight with its 104% advance during this time, and Netflix is on the hole with... more

Can Facebook Rally to $245?

/ January 10, 2020 9:08 PM

– Facebook has been on fire but the stock eventually will pull back. Here's where to buy the dip in the shares. – By Bret Kenwell, TheStreet.com After a difficult 2018, Facebook (FB) found its groove in 2019. That momentum has continued into 2020, as shares hit new all-time highs this week. It’s the stock’s first new all-time high since July... more

By Keris Lahiff, CNBC Gold prices are staging a small comeback to end the week. The commodity edged up to $1,561 on Friday afternoon, reversing a fall seen a day earlier. The yellow metal reached a near seven-year high earlier in the week as investors rushed to safety on increasing U.S.-Iran tensions. Todd Gordon, founder of TradingAnalysis.com, says gold could... more

How does the old saying go? Nothing last forever? That's certainly been true among the so-called FANG stocks of late. Apple (AAPL), which could do little to help itself just a few months ago, has been on a tear. Meanwhile, market-darling Amazon (AMZN) continues to fall out of favor. It's not quite in the same trouble Netflix (NFLX) found itself... more

Most option traders understand the concept of delta and theta. Delta is, of course, how responsive an option’s price is to changes in the price of the underlying instrument, while theta is the rate of deterioration of an option’s value due to the passage of time. That makes sense… the greater the time left before an expiration, the more speculative... more

Vega. Not even veteran option traders are readily able to explain it, let alone utilize it in their trading. And, it's certainly not necessary to make good use of all that options have to offer. Still, knowing what vega is and how it works can't hurt. To that end, here's a rundown of both, using a real-life example. It's a... more