Weekly Options Market Update

 

Below are some excerpts from Cabot Options Trader, your guide to quick profits using puts, calls, spreads, straddles, iron condors and other options trades. Analyst Jacob Mintz explains and recommends diverse investing strategies for big gains with controlled risk.


Options Market Update

There will be plenty of market-moving catalysts this week. First, the market will react this morning to the lack of an oil deal from the world’s largest oil producers.»

Options Market Update

The upcoming week is packed with economic data releases and earnings announcements, and there’s the potential for volatility based on these catalysts Tuesday through Friday.»

Options Market Update

Two weeks ago, I began highlighting that put buying was matching, or even outweighing, call buying—this is fairly rare in an up-trending market.»

Options Market Update

The market is expecting very little from the financials this earnings season, and it will be interesting to see how the market reacts to negative/positive earnings reports.»

Options Market Update

Rarely does the VIX stay at such depressed levels for long, and that the risk/reward at such cheap prices is skewed towards buying volatility vs. selling.»

Options Market Update

This week will be packed with important economic data including Consumer Confidence, Consumer Sentiment, Consumer Spending and two manufacturing reports.»

Options Market Update

I would be very cautious buying too many options this week, as the decay of the upcoming long weekend will likely hurt long calls/puts unless stocks or indexes make big moves.»

Options Market Update

After the European Central Bank "fired its bazooka" of economic stimulus, European and U.S. markets swung wildly on Thursday, but managed to close at the highs for the week on Friday. For the week, the S&P 500 gained 1.11%, the Dow added 1.21%, and the Nasdaq advanced by 0.67%.»

Options Market Update

If you are bullish or bearish on these stocks, many of which added over 100% the past week, I recommend using calls or puts to make your “bets.”»

Options Market Update

This week will be packed with important economic data, but the biggest event of the week could come from the political world. »

Options Market Update

The VIX closed the week at 20.53, lower by 19%. What was interesting was that the VIX continued to decline into the end of the week, even as the market stopped advancing.»

Options Market Update

In light of the recent volatility in the market and dire predictions for a global recession, buying puts/volatility against a portfolio seems to be a prudent tool even at these levels. »

Options Market Update

For the bears, Friday’s price action was nearly ideal, as former market leaders such as Facebook, Google and Microsoft, which had recently handily beat earnings expectations, were crushed.»

Options Market Update

Earnings season rolls on this week with reports from companies such as Google (GOOG), Dow Chemical (DOW), Pfizer (PFE) and Exxon Mobil (XOM). It's also a big week for economic data releases.»

Options Market Update

This week is packed with important economic releases, including Consumer Confidence, GDP and the Federal Reserve’s Announcement on Wednesday.»

Options Market Update

Earnings season ramps up significantly this week, with reports from Bank of America (BAC), Delta Airlines (DAL), Morgan Stanley (MS), Netflix (NFLX) and Goldman Sachs (GS). »

Options Market Update

The upcoming week is full of economic data releases, Federal Reserve member speeches and the start of earnings season. Unfortunately, very little of that will matter to U.S. stocks. »

Options Market Update

The release of economic data will be very heavy this week. Leading the headlines will likely be Friday’s release of the December Jobs Report.»

Options Market Update - December 28, 2015

The overall market continues to stay within a reasonably tight range, while under the surface there is extreme sector rotation. What sparks this rotation is anyone's guess. »

Options Market Update

This week is full of economic data including third quarter GDP, and housing and oil data. It will be interesting to see how the week plays out because sentiment is swinging wildly.»

Options Market Update

Why would the steady decline in the price of oil cause selling in stocks such as Amazon or Facebook? The reason is the meltdown in the high yield market.»

Options Market Update

All successful traders have their own rules on stops. Some traders believe in “hard stops,” some believe in “loose mental stops” and others believe in a combination of the two.»

Options Market Update

The market is pricing in an approximately 72% chance of a rate hike in December, and Friday's jobs number will go a long way toward firming up the odds.»

Options Market Update

The couple of hours or days when options are mispriced are the times when it makes best sense to execute a buy-write, naked put or other volatility-selling strategies. »

Options Market Update

The VIX closed the week at 20.08, or higher by 40% for the week. While a significant rise, it was not a huge spike but rather a slow and steady grind higher. »

Options Market Update

The VIX closed the week at 14.33, marginally lower for the week. As the price of puts has declined along with the VIX, my scanner has been picking up on more and more strangle purchases.»

Options Market Update

Approximately one-third of S&P 500 companies will report earnings this week, including Tesla Motors on Tuesday, Facebook on Wednesday and Walt Disney on Thursday, and the October Jobs Report is due on Friday.»

Options Market Update: Rough Week for Ackman

As of Bill Ackman’s latest filing, nearly 30% of his hedge fund’s capital is invested in Valeant Pharmaceutical, which fell by almost 45% at one point last week. »

Options Market Update: Train Wrecks Continue

The list of daily "train wrecks" continues to grow this earnings season as Pandora (P) is down 35% today, Whirlpool (WHR) is down 10% and select biotechs have lost 10%-20% each day.»

Options Market Update: Stops and Quick Profits

This week is light on economic data, but packed with earnings announcements. We'll be active this afternoon and tomorrow, selling new calls against positions whose calls expired on Friday. »

Options Market Update: Short-Term Bullish

Clearly market momentum is bullish in the short term, but there could be a great deal of supply/sellers waiting to take profits or exit positions that they didn’t liquidate before the August selloff. »

Options Market Update: The Dogs Explode Higher

On Friday, a trader bought 40,000 Exxon Mobile (XOM) November 77.5 Calls, and call buying was brisk in nearly every oil stock. »

Stock Picks

Mattel

Turnaround situations can be a great place to find relatively low risk, high paying dividend stocks—and they’re usually a great value to boot.

Corrections Corp. of America

This REIT has paid dividends since 2012 and increased the dividend in each of the past three years.

Philip Morris

This non-cyclical consumer stock offers consistency and high dividends.

Cabot Wealth Advisory

Options Trading Lesson: The Company Is Not the Stock

By Jacob Mintz on May 03, 2016

Divorcing one’s personal beliefs from a company’s products and its stock can be extremely challenging. However, a look at the stock’s performance and options trading can go a long way to helping investors avoid their personal biases.Read More >

Burger Stocks: The Bubble Has Burst, and One Clear Winner Has Emerged

By Timothy Lutts on May 02, 2016

Burger stocks exploded last year. It started with the IPO of Shake Shack (SHAK) in January, an offering that was priced at 21, but began trading at 47. It was fueled by lots of hype about trendy private chains, like Five Guys, In-N-Out Burger, Whataburger, Umami Burger and Iron Chef Bobby Flay’s Bobby’s Burger Palace.Read More >

Another Dire Stock Market Prediction: Whoopee!

By Paul Goodwin on April 29, 2016

McKinsey & Company is a big consulting firm—9,000 consultants and 2,000 researchers around the world—that companies hire when they need advice. I get research reports from McKinsey every once in a while, and they’re usually beautifully designed, well written and interesting in an abstract kind of way. The report that reached my email in-box on Thursday had the intriguing title: “Why investors may need to lower their sights.” (Note how the avoidance of Capital Letters makes things a little edgier; that’s the McKinsey Difference!) It took seven people to write this little piece of analysis, so you know it must contain really valuable information. Read More >