Options Trading

Early this month we explained how shares of grocery store chain Kroger (KR) appeared to have more upside ahead. Although the purpose of that commentary was to point out how the stock's history could help us figure out its future, certainly a few people borrowed the idea for a real trade too. And, that's fine. You secured about three points worth of movement there, and if you played your hand perfectly, you scooped up nearly four points worth of action. Regardless, now that Kroger has reached the suggested target, it's time to (1) point that out, and (2) point out the next likely move. Only this time, we're going to use a hypothetical option trade to make the play. The purpose this time around, however, is to illustrate the approach and thought process for picking an option trade. But, first things first. This is the most recent daily chart of… more


If you're like most new options traders, you probably don't worry too much about the predictive pricing measures called "the greeks." And, if you're like veteran options traders, odds are good you're mostly focused on delta and theta… which quantify (respectively) responsiveness to changes in the price of a stock or index and the amount of value an option loses... more

Want to be a better trader? Then learn from real-life examples. Use winning trades as templates for future trades, and pay particular attention to how technical indicators you may not be familiar with unfurl with these trades. You just might end up adding a new trading tool to your toolbox! With this backdrop in place, let's run through some of... more

— "The market looks to have digested most negative news during the recent sell-off from $41,000 to $29,000," one analyst said. — By Omkar Godbole, Coindesk While bitcoin (BTC) seems to have found a bottom, a quick rally to record highs looks unlikely, analysts told CoinDesk on Wednesday, saying the cryptocurrency now faces price consolidation. "Bitcoin looks to have bottomed... more

Do you think quadruple-digit winners are just fish tales from traders looking for a bit of an ego boost? Admittedly, such trades are few and far between. They're not impossible though. We know it, because we just made one. You can find these setups too. Not all of them will do this well. Indeed, most of them won't even come... more

By Keris Lahiff, CNBC Oil's rally is hitting the gas. West Texas Intermediate gained another 1% on Wednesday, pushing it well above $68 a barrel, after OPEC+ doubled down on its decision to ease supply restrictions through July to keep up with demand. As WTI crude traded at its highest level since October 2018, energy stocks rallied alongside it. The... more

Last week we started an instructive dive into debit spread trades, using a real-life example from our Debit Spread Options Advisory. Namely, we dissected why we were bullish on Caesars Entertainment (CZR) back on April 20th, and why we opted to purchase the 83 calls expiring a week and a half later and at the same time chose to sell... more

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