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Last Updated: May 6, 2008 - 6:47:21 AM |
Trading Psychology
What the VIX is Telling Us
The VIX ($18.90, up $0.72) or Volatility Index is a tool you can use to gauge market volatility. It is modeled after the S&P 500 and gives you an idea of investors' confidence or non-confidence in the market. The key point here is that the value of the VIX increases as the market goes down and decreases when the market moves up. So if the market trades lower, usually the VIX is up. If the market is up, the VIX trades lower.
May 6, 2008 - 6:39:26 AM
Company Commentary
Deal Or No Deal?
Microsoft (MSFT, $28.40, up $0.88) is reportedly willing to pay up to $32-$33 for Yahoo (YHOO, $26.81, down $0.60) in what may be its last attempt to get Yahoo's stockholders to pressure the board to sell. Yahoo's board wants a deal done in the "upper $30s." The original deal was for $29 a share.
May 1, 2008 - 4:51:02 PM
Advanced Stock Option Strategies
How to Use a Strangle
Strangle option trades are a good way to take advantage of a volatile situation when you have factored in a 10% move or more in a stock. Many companies can experience these types of swings on earnings announcements, FDA news, unexpected news, or a host of other events. As option traders, sometimes direction can be hard to call and in these cases, its better to hedge your bets instead of throwing all of your eggs in one basket.
Apr 29, 2008 - 9:46:42 AM
Company Commentary
Google's Gigantic Gain
For those of you who doubted Google (GOOG, $536.40, up $86.86), shame on you. If you haven't heard by now, Google had its biggest ever one-day point gain and was up 20% Friday after blowing away Wall Street's estimates. The stage was set for a huge disappointment. If Google missed, there goes the Tech rally that started with Intel (INTC, $22.55, up $.0.44). If Google beat expectations, it would seem only natural that the stock would pop.
Apr 20, 2008 - 8:31:01 PM
Options News
The OIC Announces March Options Trading Grew 23%
The OIC Announces March Options Trading Grew 23%
The Options Industry Council (OIC) announced that total options trading volume in March reached 282,000,233 contracts, a 23.36 percent increase over the year-ago level of 228,595,638 contracts.
Total options daily trading volume for 2008 is averaging 14,100,012 contracts, a 35.7 percent increase over the 10,390,711 contracts averaged for the same period in 2007.
Apr 14, 2008 - 6:20:02 PM
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