Options

How do you place a value on options positions within a portfolio? Actually, because of the nature of options it is extremely difficult – if not impossible – to accurately balance an asset allocation target that includes derivatives.    For example, a portfolio of $1 million specified the...

A spokesperson for Silicon Labs (NASDAQ: SLAB) had no information on the unusual option trading in the company stock on Thursday. Put volume is at 2,032% of average, with 4,176 contracts traded in the October 35 put. The spokesperson said "we don't have any insight into what drives the trading...

Pep Boys (NYSE: PBY) spokesperson Mike Melia, commenting on the unusual options activity in the company's stock, says there are no updates to report on the acquisition by Gores Group. 15,027 June 9 put contracts traded Wednesday on Pep Boys and overall put volume was at 1,523% of average. Melia...

As the euro falls to new year lows against the dollar, how should we perceive this? Is the market pricing in a breakup or is this just a justified move that is finally occurring on the back of souring sentiment? With German yields falling, talks of a Greek exit rising, and Spanish banks souring by...

Yesterday, Bank of America put out a report highlighting that the best QE indicators are the 10-year and 5-year breakeven rates. For those who don't know, the breakeven rate is equivalent to market expectations of inflation. For the 10-year breakeven rate, you would subtract the inflation-protected...

American Vanguard Corp. (NYSE: AVD) is showing unusual option activity today, with call volume at more than 1,000% of average. The August 30 call has a volume of 2,636 contracts. The underlying common stock is trading at $26.10. A spokesperson for American Vanguard told Benzinga there is no news...

  The federal tax rules concerning options are among the most complex sections of the tax code. This has led to many misunderstandings. For example, many traders have heard that some covered calls are “unqualified.” What does this mean? It means that in some situations, a trader who has...

Options on Facebook (NASDAQ: FB) will be available as early as May 29th. With volatile price action in FB after its IPO, traders will look to options strategies to profit. In the next several months FB is going to face pressure to grow into its current 100 Billion dollar valuation. As a growth...

A spokesperson for Keegan Resources (NYSE: KGN) responding to today's unusual options activity, says there is no news to account for it. Jay Adelaar, Investor Relations Manager stated Keegan is "ridiculously oversold" and investors are most likely hedging their bets. He also mentioned today's $38...

Today’s rock-bottom interest rates and overpriced financial assets have created a low-return investment world that requires proactive yield-enhancement techniques such as covered calls, to generate the additional investment rate of return needed to retire comfortably. Selling covered...