Issues
The breadth worries that had so many traders on edge finally reared their ugly head and took a bite out of the market as the indexes took a big hit on Wednesday. By week’s end things had improved a touch, but still the S&P 500 fell 2.45%, the Dow lost 2.54%, and the Nasdaq declined by 2.71% last week.
Recent Alerts
Open Positions
| Position | Date Opened | Current Net Price |
|---|---|---|
| Puts and Calls | ||
| Buy Call SOFI | 12/20/24 | 3.75 |
| Buy Call JETS | 12/5/24 | 3 |
| Buy Call RKT | 8/27/24 | 3.53 |
| Buy Call PLTR | 7/2/24 | 4.63 |
| Buy Call HPE | 6/20/24 | 2.73 |
| Buy Call ONON | 5/29/24 | 6.40 |
| Buy Call WMT | 5/17/24 | 4.35 |
| Buy Put QQQ | 3/5/24 | 21.40 |
| Buy Call HOOD | 2/22/24 | 2.70 |
| Buy Call ORCL | 9/12/24 | 14.93 |
| Buy Call OXY | 10/2/24 | 5.50 |
| Buy Call GLW | 10/11/24 | |
| Covered Call Writes | ||
| PR Covered Call | 2/29/24 | 14.54 |
| Buy Call MSOS | 5/2/24 | 7.65 |
| Buy Call LYFT | 6/7/24 | 15.30 |
| Buy Call SMR | 10/24/24 | 16.4 |
Options Strategy
Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.
Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.
A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.
Using Options to Hedge a Portfolio
A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.
A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.
Options Education
Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies that are involved.
In a Bull Risk Reversal, the investor buys the call and sells the put. It’s an ultra-bullish position as buying a call is a bullish position, and so is selling a put.
A bull risk reversal trade brought Hewlett Packard Enterprises (HPE) to Jacob’s attention back in June. Bull risk reversals are a favorite tool for hedge funds and are just about the most bullish trade you can execute using options because both components of the trade are bullish.
Buy-Writes vs. Naked Puts