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The previous post covered debit spreads, when you pay a debit looking for a stock or ETF to move in a certain direction. Credit spreads are just the opposite, with traders collecting premium upfront in hope that the stock won't move a certain way. What a Credit Spread...
Suddenly the bulls are logging into Pinterest. The social-media upstart had record call volume yesterday as options traders positioned for a potential move higher. The activity came after a report showed growing user traffic. PINS' user base rose 9 percent to 82.4...
Traders often expect a stock will move higher or lower. But they might not be sure which strategy to use. Should they buy calls looking for a rally, or puts looking for a drop? Should they buy single options, or spread one contract against another? This post will...
Silver is in the midst of its longest winning streak in three years as several potentially bullish forces line up. Silver futures (@SI) are rising for the fifth straight week, their longest rally since early 2017. Volume and open interest have increased at the same...
Options traders seem to think two obscure technology stocks are poised for rallies. They first targeted Pinduoduo (PDD), amassing about 15,000 December 39 calls in the Chinese e-commerce firm. Most of the blocks crossed the tape for $0.60 to $0.80. Bottomline...
Someone's looking for Marathon Petroleum to keep running into the New Year. Options volume spiked to triple the monthly average in the oil refiner yesterday as a trader rolled a bullish position: About 32,000 January 70 calls were sold for $3.72.A matching number of...
The yield curve flattened over the summer as fear swept the market. But now as it goes the other way, sentiment may improve in major banking stocks. The yield curve is the relationship between the two-year and 10-year Treasury notes. People buy 10-year notes when...
Health-care stocks have been lagging all year, but yesterday an options trader looked for quick a bounce. Check out the huge call spread in the SPDR Health Care ETF (XLV): 100,000 25-October 91 calls were purchased for $0.42.100,000 25-October 92 calls were sold for...
Last weekend, TradeStation's education team hosted a knowledge-packed training event on options. It was a great opportunity for someone like me, a perennial stock trader, to learn more about calls and puts. In case you missed it, I took notes. Here are some of the key...