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Options
Big Trade in a Little Gaming Stock: Options Recap

Big Trade in a Little Gaming Stock: Options Recap

A small gaming stock has pulled back hard following a big rally, but now the bulls are back. Remember Scientific Games (SGMS)? It's a provider of gambling-technology like slot machines and lottery systems. But it was also viewed as a key beneficiary to the U.S....

Options Recap: Are Airlines Ready to Fly?

Options Recap: Are Airlines Ready to Fly?

Are airlines ready to take off? Some options traders seem to think so. The ARCA Airline Index ($XAL) rose 2.2 percent Monday, its biggest gain in over a month. The move on the heels of strong weekly bookings data and followed a broader rally in the transportation...

Greek of the Week: Gamma

Greek of the Week: Gamma

This is the second installment of a four-part series about options Greeks that will appear on Market Insights between now and Labor Day week. Last week, we looked at delta. Delta measures how much an option changes in price when the underlying stock or ETF fluctuates....

Here’s How Much Money Someone Made in Apple on Friday

Here’s How Much Money Someone Made in Apple on Friday

There's a reason why people trade options in Apple (AAPL). Check out this massive call spread that took shape in the tech giant during Friday's session. Roughly 81,400 August 215 calls were purchased in thousands of small blocks. Buyers paid $1.03 on average. A...

Riding a Megabank on the Cheap: Options Recap

Riding a Megabank on the Cheap: Options Recap

One big investor is riding a megabank on the cheap, thanks to the leveraging power of options. Bank of America (BAC) has been on the move since late 2016. A large call roll yesterday seemed to show that a money manager is using options as a surrogate for owning...

Greek of the Week: Delta

Greek of the Week: Delta

This is the first installment of a four-part series about options Greeks that will appear on Market Insights between now and Labor Day week. Some clients may be confused by options, especially their use of Greek letters. Delta, gamma, theta, and vega. How to remember...

Options Recap: Traction for Major Automaker?

Options Recap: Traction for Major Automaker?

Is a well-known automaker ready to regain traction after skidding lower? One big investor seems to think so. A massive put sale was detected yesterday in Fiat Chrysler (FCAU), apparently reflecting a belief further downside will be limited. If the trader is right, he...

Know Your Options: Buying Volatility When It’s Cheap

Know Your Options: Buying Volatility When It’s Cheap

Buy low, sell high. It's a basic rule of investing everyone's heard. What they might not appreciate, however, is how it applies to implied volatility. We'll examine that today because it may help spare some readers money and hassle. First, remember that implied...

How to Manage Risk in a Teetering Giant: Options Recap

How to Manage Risk in a Teetering Giant: Options Recap

Disclosure: This post is intended for educational purposes only. Options may not be suitable for all investors. What happens if you want to own a stock but are worried about short-term volatility? Use options -- that seemed to be the answer from a big investor...