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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...
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....
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...
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...
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...
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...
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...
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...
How much leverage can options produce? Keep reading to find out. On Friday, an investor crafted a three-part strategy in Mylan (MYL) that involved selling two contracts to buy another. The result was a position with the potential for massive percentage gains but also...