The OptionsANIMAL Blog
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Implied Volatility can be simply thought of as the “expensiveness” of options. There’s a bunch of math – but let’s keep this simple. I often use the analogy of insurance, which is actually more than an analogy; insurance is technically a put option. Let’s use homeowners insurance as an example. […]
Read MoreIn the last few weeks of March 2019, the headlines in financial media were consumed by the news of the inverted yield curve. What does an inverted yield curve mean? The U.S. Treasury issues bonds for different periods of time, e.g., 3 month, 6 month, 1 year, 10 year, etc.. […]
Read MoreLet’s suppose for a moment that Elon Musk is serious about a Tesla buyout at $420, how could you trade it? 1) Long Stock The first and most obvious approach for most traders is to buy shares. As of this writing, the stock is trading at $373.70. That gives you […]
Read MoreAs another earnings season begins, options traders are presented with an opportunity to structure trades that aim to take advantage of the potentially explosive moves in stock prices that can occur with the release of earnings information and forward guidance. While it is often difficult to predict the direction a […]
Read MoreLast Christmas, my wife and I received a full case of fresh Florida oranges as a gift from my parents. You can only eat so many delicious orbs of citrus goodness. With a dozen or so fresh oranges left, we broke out the juicer and squeezed them into a sweet […]
Read MoreFrom time to time, someone will ask me, “What is a covered put?”. I pause as I know that the following conversation pertains to a little used and often misunderstood strategy. A strategy that has a potentially unlimited risk. A strategy that can be used with a bearish outlook and […]
Read MoreImplied Volatility is metaphorically like an onion. There’s a lot of layers. Once you peel a layer, there’s another one. Let’s start with the basics. The rest of the details come with more experience and understanding. Simply stated, Implied Volatility is the risk component in option pricing. Let’s take an example […]
Read MoreVolatility is back! Perhaps that is the understatement of 2018 as we have watched global equity markets enter into- and rebound out of – correction territory in February. Just two weeks ago the market theme was FOMO – fear of missing out – and traders/investors couldn’t snap up shares of […]
Read MoreIf you really understood the VIX you would not trade it. On top of all the risks, which are frightening, it can be easily manipulated. You – and I mean YOU – can move the VIX with as little as $50. Only two kinds of people make money on the […]
Read MorePresented by Greg Jensen, Karen Smith, and Eric Hale. Video Transcription Greg Jensen: Good afternoon, good evening everyone. Welcome to the Options Animal Weekly. This is Greg, glad to be here today. I’m joined by two of my favorite people on the planet. Karen Smith: Aww. Greg Jensen: Eric Hale, […]
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