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Know Your Options: Archive

David Borun

Should You Consider Trading Weekly Options Expirations?

More frequent expiration cycles allow traders to customize their positions, but also involve unique risks

CBOE

David Borun

Why You Should NOT Be Trading Options on Tesla Right Now

Big moves, high volatilities and high "vol of vol" make Tesla options a real widowmaker lately

TSLA AAPL

David Borun

Call-Put Parity Reprise

The principle of call-put parity means calls can act like puts and vice versa.

CBOE

David Borun

Call-Selling Terminology (Plus a Bit More on Call-Put Parity)

Selling calls can be a very effective strategy, but you might want to avoid in-the-money options.

CBOE

David Borun

Don't Let Low Volatilities Lull You into a False Sense of Security

Unpredictable events are perpetually on the horizon, smart traders know how to survive them

CBOE

David Borun

A Big Rally and High Volatilities Make Tesla a Candidate for Cash-Covered Puts

Those who missed the recent rally aren't totally out of the game

TSLA GM F

David Borun

Back to Fundamentals to Start 2020

At the start of a new trading year, let's examine a basic topic that's important for understanding our trades to come this year.

CBOE

David Borun

Tesla Collar Update

As the shares continue to rally, how can a trader make the right decision about what to keep and what to sell?

TSLA

David Borun

Using Options to Lock in Tesla Gains

With a big winner on your hands, a collar can protect profits while still preserving potential

TSLA

David Borun

Why Do Options on the Same Stock Trade at Different Implied Vols?

The normal distribution assumption in option pricing models doesn't accurately reflect real life

David Borun

A Different Take on a Popular Strategy

Options volumes may be a good signal, but not necessarily how you might think.

David Borun

Understanding Options During a Marijuana Stocks Rally

With pot stocks getting a boost from legalization efforts, understanding options is key to making the best value decision

CGC

David Borun

Playing Offense when Volatilities are Low

With the VIX at 13%, it may be a good time to speculate using options.

TSLA GM F

David Borun

Pay Attention to Hard to Borrow Rates, Even in Options Trades

The prices of traditional options strategies change along with interest rates

TLRY MSFT

David Borun

How to Replicate a Stock Postion Using Options

Options can be a way around account restrictions, but not negative interest rates

CME CBOE

David Borun

Selling Puts is not as Risky as it Sounds

In a stock you want to buy, selling naked puts is actually a less risky alternative

NFLX DIS AAPL

David Borun

Looking for a Glimpse of the Future...In the Past

Another look at using historical data to analyze potential options trades

CBOE

David Borun

What do Baseball and Options Trading Have in Common

Answer: The stakes are higher in October

NFLX

David Borun

Open Interest in Options Influuences Stock Movement

The behavior of market makers often makes an underlying stock move in predictable ways.

CBOE

David Borun

Rolling Covered Calls Up and Out

Maintaining a covered call position that's been working is as easy as knowing how to "roll" an options trade.

AAPL

David Borun

Volatilities Sink, How do we "Buy Low"?

We sold calls when implied volatilities were high, now it may be time to close those trades and buy downside protection.

CBOE

David Borun

VIX Revisited and a Trade for Volatility Spikes

There's a smart way for the average investor to trade implied volatilities

CBOE

David Borun

What is the VIX Telling Us About the Equity Markets?

The last time the VIX was this high, it was time to buy

CBOE

David Borun

Spread Trade #8 - The Calendar

Buying or selling a calendar spread is a bet on a divergence between actual and implied volatilities

David Borun

Spread Trade #7 - The Collar

In volatile markets, a low-cost collar can protect a stock position

SPY