Category Archives for Options
Options in Play – Revisiting the Term Cumulative
I talk about “speculative” trade ideas in the nightly letters and it’s been a while since we went over what that means. RH is a recent trade idea that fell into this category, and presents a good opportunity to revisit the topic.
Continue Reading -->Why Trading Options at the Open Might Be a Bad Idea
Many stock traders love the opening action because of the heightened volatility. But what’s great for stocks is not necessarily good for options — especially at the open.But trading options just after the open can be a bad idea. Options are much less liquid in the first 15-20 minutes of trading, which means less liquidity […]
Continue Reading -->Interview With Pro Options Trader Dan Darrow
In our latest trader interview, we sat down with professional options trader Dan Darrow of Options in Play for a discussion on his unique options trading style. Tell us about yourself! I’m a professional options and equity trader based in California. I have been trading for a living since 2006, when I graduated from Fordman […]
Continue Reading -->How to Trade Options Around Earnings Using Straddles and Strangles
The beauty of options trading is that you don’t always need to pick a direction — even when it comes to binary events like earnings reports. And since event-driven options trades are an important part of the Options in Play newsletter, I regularly use nondirectional strategies like strangles and straddles. The Basics of Going Long […]
Continue Reading -->Setting Expectations for WORK’s First Earnings Report
WORK will turn in results for the first time as a public company tonight and expectations are high but price performance has been lousy. I’ll go over the numbers to watch for, technical set up and the priced in move for options. If you like what you see, be sure to follow up for more […]
Continue Reading -->Why I Don’t Like Weekly Options
I have a love/hate relationship with weekly options. They are some of the most heavily traded contracts but they are often some of the worst contracts to trade. I am going to talk about when I trade them and why I avoid them pretty frequently as well.
Continue Reading -->How to Size Options Positions in a Choppy Tape
Multi-point moves each day is creating a ton of action in stocks, which means a ton of opportunities. Adjusting position size is important when the market is lacking direction like it is now.
Continue Reading -->Options In Play – Expanding on Options Collars
In this all-new video, Daniel Darrow explains how options collars work, including the benefits and drawbacks they have relative to regular hedges. He uses DE to illustrate these points more clearly.
Continue Reading -->Options In Play – Earnings on the Radar for This week
Daniel Darrow of Options in Play goes over earnings names to watch, including AYI and ISCA.
Continue Reading -->Options In Play – Closing Catalyst Trades
The type of tape is going to affect what style of earnings/catalyst trades work and also how those names behave after. Right now, we are seeing a more indecisive, volatile tape and that is impacting the exits for trade ideas.
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