by Matt Krupski In time of extreme volatility, investors often turn to options trading for portfolio protection, risk management, speculation, to generate potential income, and to enhance returns. If you are new to options, you’ll find they open up an exciting new realm of investment opportunities for you. Whether used alone or in conjunction with other [...]
by Michael Sabo Corn has made an impressive run, hitting $7.68 a bushel on April 11, 2011, its highest level in more than two years. Looking back to June 2010, corn was trading around $3.80 a bushel, so this market has been good to the bulls. Year-to-date, the market is up 20 percent. The big [...]
by Aaron Fennell Many traders want to get into the market, but have a difficult time finding the right opportunity to get in at the desired price. If you place a limit order, it might not get hit. And even if you do have a position on, it can get stopped out due to volatility. [...]
Corn Volatility Calls for Options Strategy by Mike Sabo We are seeing a lot of volatility in the commodities markets right now, and that creates a lot of challenges for traders. I’m going to outline an options strategy you can pursue when markets are volatile, using corn as an example. You can apply this type [...]
Sugar Bull Call Butterfly Spread By Phil Streible A bull call butterfly spread enables a speculator to enter the market with limited risk, while providing a large range for the trade to turn a profit. Sugar looks bullish, and offers a good market to apply this strategy to right now. The strategy involves buying a [...]
A recent survey of 33 analysts conducted by Bloomberg revealed that crude oil is seen averaging $60 a barrel in 2009, up from just under $40 currently. OPEC’s pledge of a 14 percent supply cut is seen crimping inventories, and the U.S. economy is also seen improving by year-end. Crude oil futures averaged $100 in [...]
Treasury Bubble Part II: Three-Month Yield Turns Negative by Phil Streible & Richard Ilczyszyn Risk-aversion has been driving investors, and they have been rushing into U.S. Treasuries. Yields have been pushed down to historic lows across the yield curve, and in an unprecedented development, three-month Treasury bill yields have actually turned negative. The Treasury bubble [...]
The Treasury Bubble By Richard Ilczyszyn The fear and the volatility we’ve seen in the past few months in the stock market has driven investors to safe-haven instruments like U.S. Treasuries, and prices for Treasury bonds and notes have soared. It’s looking like the next big bubble. Like any bubble, I think it will eventually [...]
Panic Selling in Stocks Has Ebbed, But Still Bearish By Ben Kim The economic crisis of 2008 is on the forefront of everyone’s mind and has affected CEOs and blue-collar workers alike. The stock indexes have been incredibly volatile as a result and the market remains bearish from both a fundamental and technical perspective. The [...]
Trading Volatile Markets Using Options: S&P and Crude Oil By Tom Mikulski We have seen quite a sell-off in the stock market in the past few weeks, and I’m sure if you’ve been watching the news, you know exactly what’s caused that and don’t need me to describe that for you. At the same time, [...]
