Options Trading

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 in just a few weeks back, but it wouldn't take much to reach that point. The graphic below tells (most of) the tale. Apple has been unstoppable since August as investors once again see a light at the end of the tunnel. Demand for the iPhone isn't drying up quite as much as feared, while the transition toward more services-based revenue is going better than expected. A little more bullishness and AAPL could become the twelve-month performance leader, aping Facebook (FB). At the other end of the spectrum, Netflix is… 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

Stocks are on the mend on Tuesday, largely led by most of the all-important names that make of the group known as FANG stocks. But, the FANG stocks as a group and individually are far from showing us the convincing strength needed to pull the whole market out of trouble. Indeed, one name in particular is proving persistently weak. The... more

– The white metal is far more volatile and that can be used as an advantage by savvy investors. – By Simon Constable, TheStreet.com Anyone bullish on precious metals should consider silver instead of gold. The white metal tends to see far more volatility, which is an advantage for traders in an up-trending market. Plus, silver prices are still playing... more

How much is too much? It’s not an easy question to answer for any area, but it’s proven particularly tough as it pertains to stocks. For the past few months, just when it looks like the market can’t climb any higher, it does. Worse, most of the usual tricks of the trade aren’t working like they used to. There’s one,... more

– Bitcoin prices were backing down on Thursday from another surge akin to its sudden rise in late 2017 – By Tiernan Ray, TheStreet.com There goes bitcoin. After soaring almost 20% on Wednesday alone to just below $14,000, the virtual currency succumbed to gravity on Thursday morning, dropping below $12,000.  The price of bitcoin had surged by more than 80% in less... more