by Don Fishback We’re going to do the same thing that the prudent insurance company would do. And it’s going to shock you how easy it is to do it! The strategy even has a name. The tool we’re going to use that duplicates this insurance/reinsurance business model is...
by Don Fishback When the number of options that you buy in a spread differs from the number of options sold, you have a ratio spread. Call Ratio Spread In a call ratio spread, you typically buy one put at a lower strike price and sell two calls at a higher strike...
by Don Fishback A straddle is the purchase or sale of a put and a call of the same month, same underlying market and same strike price. A strangle has the same characteristics with one exception: Different strike prices for the put and call. Straddle Example...
Every day we look for a stock that is trending in the news or social media. We do this looking to find assets that have mispriced options. We then prepare high level analysis to report here in this newsletter about 250 times each year. Rarely do we have a day like...
WOW! Who would have thought GameStop Corp. (GME) would have a positive earnings report today? The meme stock just keeps surprising. Here are some of the headlines since the news broke… What does this mean for options traders? Is there an option trade with an edge? It...
Palantir Technologies Inc. (PLTR) is trending in the news this morning after the company reported yesterday that it has achieved the “FedRamp High Authorization” status for its full product suite. This allows PLTR to license all of its products, including its...
There are two seasonal patterns at work today. Both were made known by Norm Fosback. The first is called the turn-of-the-month seasonality. This pattern says that the market tends to move up on the last two trading days of the month plus the first 5 days of the...
All eyes are on NVIDIA Corporation (NVDA) today. The AI juggernaut is scheduled to announce earnings after the close today. The 1-month implied volatility is not especially high considering the influence this one stock has had on the overall market during the AI...
Rivian Automotive, Inc. (RIVN) is trending in the news after announcing that Volkswagon AG (VWAG.Y) has increased its spending on its partnership with the EV automaker to $5.8 billion. With the deal, VWAG.Y gets rights to RIVN software and technology, while RIVN...
Will the results of yesterday’s election cause the bond market’s pullback to exceed that seen during the worst days of the recent inflation crisis? Will it cause the bond market to decline more than the worst days of the 2008 Financial Crisis? Will we see long-term...