The charts suggest that the worst is yet to come.» Read More
It's been a tough day for stocks and for tech in particular. A firmer dollar, some lousy economic data, and a nasty semiconductor sector downgrade from Merrill are all weighing on the market.
Call it a game of follow the leader today. George Soros buys Potash shares and now everyone is clamoring to buy POT.
Do options traders sense a holiday massacre? There was a massive trade that went up on Vix options at the December expiry. Specifically, one customer sold 28,000 of the December 45-strike calls and then bought 56,000 of the December 60-strike calls.
Yankees shmankees - Is there anything better than a good ol' fashion earnings preview with derivatives? From my standpoint, the answer would be a solid no. But just incase you missed part of last week's show, I do want to update the faithful.
It's more than a motto; it's a way of life on "Options Action." We like to risk less to possibly make more. And last week, Dan Nathan - chief options strategist at Phoenix Partners Group nailed it with Intel.
We've said it hundreds of time on the show before: Never buy out-of-the-money calls in hopes of a takeover. But with so much deal making going on, and so many days punctuated with takeover talk, the urge to merge may drive some options investors to reach out and buy those cheap calls.
Are options traders doubling down on Las Vegas Sands ahead of earnings? That appears to be the case with today's action.
We say it often on the show: we like to risk less to possibly make more. That's why we typically shun buying options outright, and choose to pair our costs by selling one option to buy another. But occasionally, one of our guys (and gal) senses a bargain, and that's exactly what happened with Dan's strangle on Costco.
If you were a stock holder, would you rather have a buyback, or a dividend? If you own Exxon Mobil, you probably want the latter.
Now for the update on Dan Nathan's trade. Just to recap, he suggested buying the November 190/200 call spread, paying $7.80 for the Nov 190-strike call and collecting $4.20 for selling the Nov 200-strike call, net-net paying a total of $3.60 to win a possible $6.40.
If we sound like a broken record, I apologize in advance, but there is a reason we implore our viewers to spend less when using options, and the reason is quite simple: if you spend less, you lose less, and last week's trades offered a great example of that.
I know marketcap is a relatively meaningless stat, but Apple's is truly an astounding figure. With today's surge, the company is worth roughly $178 billion. That's more than Google ($175 billion) and General Electric ($165 billion), the parent company of this fine network.
Last week's show did not contain a lot of new trades, but in addition to spending less to try and make more, we also emphasize quality over quantity, so with that, let's take a look back at last week's strategies.
Quick recap on another episode of what is fast becoming a Friday night sensation. We kicked off the show with a good ol' fashion overwrite on National Oilwell Varco.
You got to hand it to Uncle Sam - if anything, he sure knows how to rig stocks.
Buying protection is great and good, but truth be told, spending money for protection that ultimately proves worthless is akin to lighting money on fire.
According to Gary Kaminsky, the market has not been this much above its 200-day moving average since May of 1983. "It's just another indication that the fear to "not own" stocks is sometimes as great as the fear to own names for many portfolio managers, especially this time of year," said Kaminsky. "The market is way overbought short-term."
I am grateful to AIG because on an otherwise excruciatingly slow day, it is the subject of much speculation.
A day late, and perhaps a dollar shy (after all, options do decay with time), but I do want to update the faithful with a recap of last Friday's show.
Options traders cannot leave the casino - at least if call activity on Las Vegas Sands is any indication.
Discussing pressure facing Cabot Oil & Gas, and with CNBC contributor Mike Khouw of Dash Financial Group.
"Fast Money's" Dan Nathan explains why Freeport-McMoRan is down about 7.5 percent in the last week, and how to profit from using options on the stock.
Web-only investment advice from CNBC's Melissa Lee and Scott Nations.
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Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.
Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.