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Know Your Options: Archive

David Borun

Netlix Options are Too Inexpensive to Sell

Successful "cash-covered" puts depend on collecting a juicy premium, and this stock doesn't offer any.

NFLX

David Borun

When Can You Trade Options on the New Coinbase Offering?

The crypto exchange earned an $80B market cap in its first day of trading, and options are coming soon.

GOOG SPOT WORK

David Borun

With Unusual Activity, Don't Trade It...Fade It

Changes in implied volatility after unusual volume are an opportunity to trade like the pros.

CBOE

David Borun

Your Covered Calls Worked Well...Maybe Too Well. Now What?

Selling a diagonal call spread keeps you in the game when your shares are in rally mode.

MU

David Borun

Learn to Design a Trade for Shifting Implied Volatilities

Simply buying options may not be the best way to profit from an expected move in a stock.

CBOE

David Borun

Volatilities are Down, Volumes are Up

Weekly expirations are popular, are they right for your trading strategies?

CBOE

David Borun

Selling Options Responsibly in the "Reddit" Stocks

Sometimes, implied vols are so high, you don't even need all legs of a trade...

GME

David Borun

Trading Options on the Reddit/Robinhoood Stocks Requires Discipline

Huge moves and huge implied volatilities can wipe out an uninformed speculator in hurry.

AAPL GME

David Borun

A Rising VIX Can Be a Buy Signal for Stocks

When traders and investors get nervous and buy options, the worst might already be in the past.

CBOE

David Borun

With Stocks Making New Highs, Traders Should Understand Index Options

Trading options on broad indices can be a more efficient way to buy protection or generate income.

CBOE

David Borun

Cannabis Stocks are Soaring, Options May be Your Best Bet for Profits

Rising implied volatilities can help you time entries and exits for your trades.

GME AMC

David Borun

Are You Paying Attention to Pin-Risk?

Understanding contrary exercise can help you find profit and reduce risk around expiration.

GME

David Borun

A Deeper Look at GameStop Options

Don't let the Fear of Missing Out encourage you to make dumb trades.

GME

David Borun

Reader Question on Negative Short Rates

Why long puts aren't a good alternative in a negative interest rate environment

CBOE

David Borun

Contrary Exercise Brings Risk and Opportunity

The mechanics concerning which options are automatically exercised can mean the difference between profit and loss.

WFC

David Borun

Does "Quadruple Witching" Create Options Trading Opportunity?

The inclusion of Tesla could mean big volatility during the biggest derivative expiration of 2020.

CBOE CME TSLA SPY

David Borun

Do Hot IPOs Equal Hot Options Trading Opportunities?

It's been a great year for offerings, but be careful with these volatile new issues.

GOOG GM HLT SPOT WORK

David Borun

Ten Monts Later, You Should Still Be Wary About Tesla Options...

Huge options premiums mean that trading Tesla calls and puts are like playing at the high-limit table.

TSLA

David Borun

You Don't Need To Fear Option Assignments

The exercise of options you are short can actually be a blessing in disguise.

TSLA

David Borun

Let's Take Another Look at Commodity Options

With demand concerns in Energy and a "flight to safety" in Gold, it's worth considering non-equity derivatives again.

ICE CME

David Borun

Dirfferent implied Volatilities on Differnt Strikes. Why?

Modern options pricing models revolutionized speculation and risk-management, but they're also constantly evolving.

CBOE

David Borun

What Does Implied Volatility Really Mean?

How to convert annual volatility figures on short-dated options contracts

CBOE

David Borun

In Uncertain Times, Consider the Protective "Collar"

Protect your gains inexpensively with this spread fairly simple spread trade.

SPY CBOE

David Borun

Trading Options in an October Like We've Never Seen Before

The October baseball analogy is more appropriate now than it has ever been.

NFLX

David Borun

SPACs and Direct Offerings Are Becoming More Common

Traders should adjust their assumptions about volatility in these new issues.

PG NKLA