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The OptionsANIMAL Blog

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Not Including Possible Dividend Risk

By Charan Singh / June 14, 2016

My last post on the topic of dividends and options explored the terminology of dividends and common questions relating to options trading. In this post, we will understand step-by-step what exactly is meant by ‘possible dividend risk’ when trading options. To illustrate the process, we will use a recent SPY […]

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The Influence of Dividends on Call and Put Equity Options

By Charan Singh / February 29, 2016

Introduction Regular and special dividend payments influence the price and the possibility of assignment on options. Although the impact of an ex-dividend date on an option position is usually relatively small, it is important to understand the dynamics of this process for options traders. First, let’s clarify the language in […]

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Collar Strategy Example: Devon Energy (DVN)

By Charan Singh / July 18, 2013

One of the most important concepts in trading is risk management. And one of the best tools available for risk management is options, specifically the use of options insurance strategies like the Collar trade.

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Discipline – Determine Exit Points, Place Trade

By Charan Singh / January 24, 2013

Discipline in trading: Setting exit plans before placing a trade Developing a detailed exit plan is a key step before placing any trade. Whether you are buying a stock or trading options, it is imperative you have a written plan on to manage the trade in the future. Of course […]

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How Often Do Options Get Exercised Early?

By Charan Singh / January 22, 2013

This is one of the most commonly asked questions about options. The short answer is that options rarely get exercised before expiration. To fully understand why this happens we need to first understand what the terms ‘exercise’ and ‘assignment’ mean in relation to options. Then we will work through an […]

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Options Traders Market View – Sell in May, you will pay

By Charan Singh / May 1, 2012

An important part of making investment choices is to understand the context for the market and our current position in the long term economic cycle. This is a discussion of my view of the US stock market today and its potential short-term direction. Today I will focus on recent market […]

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7 Reasons to be Bullish Right Now and What I’m Doing About It

By Charan Singh / February 28, 2012

An important part of making investment choices is to understand the context for the market and our current position in the long-term economic cycle. This is a discussion of my view of the US stock market today and its potential short term direction.  Lets look at recent market developments, including […]

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What are the S&P500 (SPX) and its CBOE Volatility index VIX telling us today?

By Charan Singh / November 1, 2011

This week we saw the markets continue their rally for the 4th straight week. We are now comfortably above recent resistance levels of 1220-1225 on the SPX. We also saw a significant breakdown in the most widely followed fear index in the markets, the CBOE VIX index. VIX broke below the […]

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How much stock should we put in the Consumer Confidence report?

By Charan Singh / September 27, 2011

Today we got a fresh look at the consumer confidence report for the month of September. The number is not much changed from August and is not really a surprise. There are persistent negative headlines in the media about the EU sovereign debt crisis, lower growth expectations worldwide and stubbornly […]

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Trading Uranium Stocks during Japan Nuclear Crisis: Ticker Cameco Corp. (CCJ)

By Charan Singh / March 19, 2011

Uranium miners, like Cameco (CCJ), have fallen around 35 percent amidst the Japanese nuclear crisis. Mining companies did deserve to drop from their recent lofty highs but is the drop overdone? I really don’t know the answer for sure, but I’m willing to take a calculated risk. The situation is […]

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