Day before earnings – “XYZ reports tomorrow, I know it is going to beat expectations, and I’ve loaded up on calls!” Day of earnings – “XYZ crushed it, but XYZ went down” or “XYZ crushed it, but my calls dropped in value” I receive lots of questions and see plenty […]
straddle
A scan of my portfolio shows many trades that are short volatility/long theta. The trades benefit from little movement and time passing. This works really well – until it doesn’t. Rather than Always selling options, I prefer to have a variety of volatility hedges (VIX, SPX butterflies, etc.). I also […]
In case you missed it, the market has been volatile for the last couple of months. Snap-On (ticker: SNA), a high-end tool maker, has been moving around quite a bit as well as the three month chart shows: While the stock has come up a lot off its lows, it […]
I have friends that love going on cruises – so much that they prefer it over ‘standard’ vacations. I’ve never actually been on one, but I have invested and traded Carnival, which is the largest cruise line company in the world. The dividend has grown nicely the last few years […]
In ABC fashion (Always Be Closing), I took the profits, closing the put for 10.71 and the call for 25.89, for a win of $434 or 13.5% on my risk in about 2 hours. What’s the lesson? The title of the post refers to “Even a blind squirrel finds a […]