/investing

The U.S. Securities and Exchange Commission has hit Goldman Sachs with some serious charges, and this leaves the company in a precarious situation. It is not clear how the company’s investors and account holders will react. Analysis shows that it is highly unlikely that Goldman Sachs will meet a similar fate as Bear Stearns and [...]

We have had a pretty nice run in the markets but appear to be back to chop mode. So where do you look for some opportunity for return, while not worrying as you spend more time outside enjoying the good weather? One place is utility stocks. The idea is that, regardless of how the economy [...]

Rho, the Greek that tracks interest changes, could impact the price of your option. Insight into this Greek variable is discussed at TradeKing. Given that Rho represents the change in the price of an option with respect to a change in interest rates then you can infer it relates to opportunity costs of allocating your [...]

To see some of the basics of how options are re-evaluated when stock splits take place, see the following discussion at TradeKing. However, I like to focus on what brings on a stock split and what kind of opportunities that presents for option traders. When a company announces a stock split, it typically acts as [...]

We often speak about volatility, strike prices, interest rates and days to expiration or time value when it comes to option prices, but we rarely talk about the distinct impact that dividends have on option prices. One really good discussion about this relationship can be found at TradeKing. The primary impact to understand is that [...]

The VIX, commonly referred to as the “fear index,” is closely watched by option traders and provide mixed messages. For a great discussion on what the VIX is conveying check out these discussions at TradeKing. The VIX is calculated by averaging S&P 100 Stock Index at-the-money put and call implied volatilities. The availability of the [...]

Recently, TradeKing’s Brian Overby had a nice discussion on the option Greek delta. Delta is a very important concept for an option trader to master. With that said, lets highlight some of the more salient points about this key Greek variable. Delta is a measure of the change in the price of your option relative [...]

Many traders avoid options because they find them complicated, especially when it comes to understanding the “Greeks”, or they look only at Delta, which is the percentage an option will rise or fall in relationship to a $1 movement in the underlying stock. Another important Greek related to options is Theta. TradeKing’s Brian Overby (link) [...]

For all you new option traders or individuals looking to get into options trading there is a terrific resource to get valuable education for free. The site is the Options Playbook powered by TradeKing, and it’s packed with valuable information about the options market. After reviewing the site you can locate and educate yourself on [...]

For all you people who like to own stock, and I am certainly in that category, you might want to consider the cash flow technique I’m going to talk about today on your next equity purchase, or even apply it to what you might currently own in your portfolio. It involves writing and rolling covered [...]