I’ve written many times about using a cash-secured put sale strategy as a disciplined way to enter a long stock position at a lower price or get paid not to.#-ad_banner-# I have a slight twist on this strategy that I call the… Read More

The recent decade-long-plus highs in technology stocks have left out some old standbys that need to tweak and reinvent their business plan. Hewlett-Packard (NYSE: HPQ) has dropped from highs near $50 in 2011 to trade at the lowest levels since 2004. The three-month trading channel shown on the chart below… Read More

With a strong macro equity uptrend under way and a very low-volatility environment, this is the perfect time to make long option purchases. One stock that is setting up an attractive call option play that… Read More

The power of options is evident in a stock substitution trade in Morgan Stanley (NYSE: MS). The stock is up about $2.25 since my recommendation on Aug. 29, an impressive 15% gain in just over a week’s time. The payoff on the deep… Read More

As you can see below, the CurrencyShares Euro Trust (NYSE: FXE) fell from $134 in March to $120 in August. A recovery to the halfway point of that decline at $127 would likely send desperate short sellers running for cover. A larger objective targets a move above $130. Read More

The recent bounce in volatility, a cost component in an option‘s price, has made premium-selling strategies more attractive. After a new five-year low in the CBOE Volatility Index… Read More

Pfizer’s (NYSE: PFE) 2004 peak approached $40 before a multi-year decline. But shares have been on a strong recovery from 2009 lows below $12 a share to nearly double that price today. The combination of the powerful trend and low volatility… Read More

The banking sector has remained out of the news as overall market volatility dropped, falling to five-year lows in late-mid-August. The decrease in fear is not only very bullish, but also makes a stock… Read More

On July 30, I recommended a cash-secured put strategy in Facebook (NASDAQ: FB) in which traders sold Facebook Aug. 22 puts for $1. This setup was meant to allow traders to buy Facebook at a 10% discount from where it was trading at the time, or get paid not to own it… Read More