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Know Your Options: Archive

David Borun

What's the Correct Time Period for Your Options Trades

Long-term options come with complications you might not expect

CBOE

David Borun

Why You Shouldn't Trade In-The-Money Options

Understanding option pricing mechanics will point you to more cost-effective alternatives

CME CBOE

David Borun

Rising Volatilities Are an Opportunity

Volatility is uncomfortable, but you can make it work for you.

CBOE

Daniel Laboe

The ABCs Of Option Trading & A Couple Simple Trading Tips

The world of investing & trading has been flipped on its head, and the rise of the pandemic trader has brought with it an idea that could be very dangerous

UBER QQQ

David Borun

Apple Stock Split Prompts Significant Changes in the Dow

The world's most widely referenced stock market index will soon swap out 10% of its holdings

XOM RTX PFE HON CRM AMGN AAPL

David Borun

When Share Prices Rise, So Do Options Premiums

Check the price of the straddle as a litmus test about what options are (or aren't) worth.

TSLA MSFT GOOG AMZN AAPL

David Borun

Stock Splits Are Back in Fashion, How Are Options Afffected?

Most contracts are adjusted to minimize the impact of corporate actions

TSLA GOOG AMZN AAPL

David Borun

Have an Options Trade Idea, Backtest It

Examining how a similar trade worked in past periods can tell you if you're on the right track.

CBOE

David Borun

Can a Two-Day Straddle Be Worth $220?

Heading into a crucial earnings report, Tesla options are on fire.

TSLA

David Borun

Mailbag: Huge Hard-To-Borrow Rates Can Cause Huge Trouble

Early call assignment and high short rates turns a can't miss trade into big losses instead.

NKLA MSFT AAPL

David Borun

As Earnings Season Approaches, Consider Buying a Condor

If you think a stock probably won't move meaningfully, this is the trade you'll want.

DIS

David Borun

Expiration Can Get Tricky, but Options are Still Very Understandable

As they are about to expire, making sure you know what's happening is one of the most important parts of trading options.

AAPL

David Borun

Options on Bankrupt Hertz Provide Unique Risks and Opportunities

Extremely high volatilities and negative interest rates make trading Hertz options tricky.

HTZ

David Borun

Avoid the Pitfalls of Leveraged ETFs

Futures and options help avoid the built-in disadvantages of leveraged ETFs

SPY

David Borun

If You Liked the Straddle, You Should also Consider a Strangle.

A less expensive spread that benefits from market movement and a potential rise in volatility might be the right trade for uncertain times.

SPY

David Borun

The VIX is not really a "Fear Gauge"

Though fear is one component of options prices, there's much more to it.

CBOE

David Borun

With Precious Metals, Make Sure You're Not the "Greater Fool"

Some assets have true intrinsic value and some don't. Knowing the difference is important.

GLD

David Borun

As the VIX Falls, It's Time To Consider Buying Options

With the VIX back at 30% even as uncertainty lurks, the Straddle is looking like a good bet.

SPY CBOE

David Borun

The Oil Price Plunge is an Opportunity to Learn About Options

Extreme situations like negative futures prices are an interesting way to learn about the mechanics of derivatives.

CME

David Borun

With Energy and Metals on the Move, Consider Commodity Options

Investors with and opinion on the direction of commodity prices should know all the facts before trading those options.

CME

David Borun

Put Protection is Too Expensive for Your Portfolio

High implied volatilities make buying option protection a poor idea right now.

CBOE

David Borun

Equities Rally, but the VIX Remains High

Factors other than fear can often keep implied volatilities higher than you might guess.

CBOE

David Borun

Know Your Options, Personal Story Edition

Two events, one today and one from 20 years ago help shed some light on recent market behavior.

LRCX

David Borun

Coronavirus Causes a Volatility Spike. Time to Sell Options?

When traders scramble for protective options, your decision comes down to "trade or fade."

CBOE

David Borun

Trading Options on Takeover Deals

Contracts are adjusted to minimize the impact, but corporate deals still present an opportunity.

MS ETFC