Options Trading

Options trading utilizes leverage with the ability to control stocks in 100 share increments at a fraction of the holding price of the actual stock. Options trading is similar to the concept of rent - as in renting shares without full ownership yet taking advantage of the potential appreciation of the entire stock movement.

How To Trade Through Earnings With Options

Last updated on January 22nd, 2021 Over the next 6 weeks we will see many of the big market moving stocks release their quarterly earnings numbers. These releases can cause large market moves overnight in the stock price. While this can provide an incredible opportunity for big profits if you... Read moreread more

Weekly Options Recap 1/16/21

Last updated on January 18th, 2021 Markets finally started to show some signs of two way price action this week which we have been waiting patiently for. Over the last few months we have seen markets brush aside bad economic numbers, negative news headlines, political uncertainty, and the pandemic showing... Read moreread more

Weekly Options Recap 12/18/20

As we head closer to the Holidays, markets continue to stay firmly in control of the bulls. This past week had a number of catalysts to produce a stretch of two way price action but instead we saw another push up to all time highs. We saw bad economic news... Read moreread more

How To Trade Options Around Dividends

If you trade options for any length of time you will run into stocks and ETF’s paying dividends. It’s important to know when these dividends will require you to adjust or close a trade. What is a dividend?  “A dividend is the distribution of a portion of the company’s earnings,... Read moreread more

Midweek Options Update 12/16/20

Last updated on December 21st, 2020 Coming into this week we had markets right back up near all time highs as we head into the end of the year. We had a window this week before the holidays for 2 way price action on decent volume. The catalysts were there... Read moreread more

Weekly Options Recap 12/12/20

Last updated on January 12th, 2021 As we wrap up another week of trading, we are seeing a continued focus on the Covid-19 vaccines as well as another potential stimulus plan. Coming into this week, we had overbought conditions across the board. The market tried selling off a few times... Read moreread more

TSLA for $350 Using Options

In a market that has made a historic move to the upside over the last 8 months, we are left with many expensive stocks. A perfect example of this is Tesla (Symbol: TSLA). The stock has moved from $400 to $650 since the beginning of November. As a result, not... Read moreread more

Weekly Options Recap 12/6/20

Last updated on December 8th, 2020 Another week in the books and another week of new all time market highs. Given the news cycle world wide right now with the pandemic numbers sky rocketing and more shut downs being announced it’s amazing how well this market has hung in there.... Read moreread more

Midweek Options Update 12/2/20

Last updated on December 15th, 2020 As we settle back in to normal trading after the shortened holiday week last week we are seeing the bulls hold on to control of this market. We are seeing overbought extremes all over the place but every dip continues to be bought up... Read moreread more

Midweek Options Update 11/25/20

Last updated on November 29th, 2020 Happy Thanksgiving! With the shortened trading week this week we are seeing a continued low volume move to the upside. Many of our key markets are at or near all time highs as we go into home stretch of the trading year. When volume... Read moreread more

Weekly Options Recap 11/22/20

As we head into a holiday shortened week next week we certainly saw some profit taking on Friday. SPY is currently testing a very key support level at 355.99 which is the 8 EMA on the daily chart. We have been tracking this level over the last 2 weeks waiting... Read moreread more

Midweek Options Update 11/18/20

We have been talking over the last week about how the market has been in a slow grind higher on lower volume. That has continued to start the week this week with SPY on a mission to test the high made last week at 364.38. The trouble on this latest... Read moreread more

Weekly Options Recap 11/14/20

Last updated on November 17th, 2020 Markets got off to a hot start this week with Monday morning’s positive vaccine news. With Covid-19 numbers spiking all over the country, traders cheered the positive news that a vaccine might be close. SPY rallied on this news up to a new all... Read moreread more

Midweek Options Update 11/12/20

Now that we are past the elections, focus has shifted back to the spread of Covid-19 worldwide. With numbers spiking again we are seeing more and more headlines hit about a potential shut down. So far the market has brushed it off with the continued rotation between index products masking... Read moreread more

Weekly Options Recap 11/8/20

Last updated on November 17th, 2020 Trading this past week was completely dominated by election headlines. We saw markets rally the entire week once we got some clarity on the outcome of the elections. Over the past weeks we have dealt with earnings season, stimulus rumors, election headlines, and virus... Read moreread more

Midweek Options Update 11/5/20

Last updated on November 6th, 2020 Coming into this week, all eyes were on the outcome of the elections. No surprise that the results aren’t finalized yet but the market so far is thrilled with the likely outcome. We have been in rally mode since Friday last week with the... Read moreread more

Weekly Options Recap 10/30/20

Last updated on November 2nd, 2020 Going into last week we had been talking about how the potential was there for some big moves primarily due to the headline risk. We had the election uncertainty, the increase in Covid-19 numbers, and the big earnings numbers out of the tech stocks... Read moreread more

Midweek Options Update 10/28/20

The Covid-19 numbers have been picking up worldwide for weeks now but the markets have brushed them aside due to the hopes of more stimulus. Now here we are with the virus continuing to spread at a rapid pace and no stimulus to speak of. As a result markets are... Read moreread more

How To Use the Delta Of An Option

Options are the most flexible instruments in the world. They are also the most misunderstood financial instruments. The reason so many traders get frustrated using options is the lack of understanding of what impacts the price movement of an option. The terminology can be overwhelming for many newer traders We... Read moreread more

Weekly Options Recap 10/23/20

Last updated on October 28th, 2020 As we wrap up the week we are still waiting for an announcement on the stimulus plan in the works. Markets have been looking for more direction but instead we are left no close to a deal today than when we started the week.... Read moreread more