Options Trading

If you're brave enough to keep score, the S&P 500 is now down nearly 27% from its record high reached just near the end of February. Thursday's 9.5% meltdown is the worst day for stocks since the fateful drubbing suffered in September of 1987. But, that entire '87 affair was only an 18% setback when all was said and done, and gave way to a rather nice, sustained rally. This one somehow feels different... and is different. The meltdown is also different than what traders saw unfurl in 2001, and then again in 2008. Both of those bear markets took a sizeable bite out of investors portfolios. But, both started slow, and were guided lower in step with waning earnings. Or, at least in the case of the dot-com meltdown of 2001, the bear market was steered lower with the realization that so many of those names would never be… more

In our last FANG stocks update we warned that these names, as a group, were racing too far ahead of the pack. And, we've pointed out the same with a handful of sector-based and style-based looks of late. Not surprisingly, the overextended names that make up the so-called FANG stocks led last week's tumble. Whereas the S&P 500 fell 11.2%... more

We recently explored the ins and outs of two mostly ignored options Greeks. While most traders understand and even consider delta and theta, vega and gamma tend to be a bit too esoteric to bother studying. And, it's absolutely possible to be a successful options trader without ever thinking about these latter two Greeks. For option trading fans that want... more

The typical option trader at least understands the concepts of "Greeks" like delta and theta, even if they're not actively considering them when they pick option trades. Delta, of course, is how much an option price changes in relation to the change in price of the underlying stock or index (most traders have learned the hard way that options don't... more

Most option traders understand the concepts of delta and theta. Delta, one of the so-called option "Greeks," is a measure of how responsive an option's price is to changes in the value of the underlying stock or index. Generally speaking, the higher the delta, the better. It means you're getting more bang for your buck. Theta, meanwhile, is a measure... more

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... 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