Protect and Profit: How a Collar Trade Can Do Both

Like the long straddle trade – which involves traders purchasing both a call and a put on the same security, at the same strike price on the same expiration date anticipating a high-volatility event – the collar trade is often overlooked. The long collar trade – which involves owning a chunk of stock, selling calls […]

Cash Secured Put – Free Trade Idea

OPPORTUNITY There is an attractive cash secured put trade in Go Pro (GRPO). Currently it is trading for $9.18. CHARACTERISTICS There is a 72.7% chance the stock will close above 8.00 on 02-10-2017, and you will earn your target return of $171.15. There is a 77.3% chance the stock will close above 7.71 on 02-10-2017, […]

Can’t Decide, Long or Short? Saddle Up for a Straddle Trade

We’ve all been there. We have a feeling the market or a particular stock is going to make a big move, but we can make a viable case for each direction. The stock market is overbought, so a pullback seems reasonable. That said, what catalyst will stop the indices from powering higher? How about when […]

Covered Call – Free Trade Idea

OPPORTUNITY There is an attractive covered call trade in Advanced Micro Devices (AMD). Currently it is trading for $10.61. CHARACTERISTICS There is a 70.4% chance the stock will close above 9.50 on 02-03-2017, and you will earn your target return of $141.90. There is a 75.0% chance the stock will close above 9.21 on 02-03-2017, […]