options

Iran, Nuclear Policy, and America: An Investment Opportunity In Disaster?

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  We have a delicate balancing act at hand between the threat of an emerging nuclear power, our rapacious thirst for oil, and responsible diplomatic policy.  The consternation in the air is palpable, bringing to mind Buffet’s famous words “Be fearful when others are greedy and greedy when others are fearful”.  So how does one put such words of wisdom into an actionable trade idea?  Since going long nuclear fallout seems short sighted, let’s look at how to take advantage of a potential event driven jump in the price of oil once we fully grasp the situation at hand. At … Read more

Options Players Wager On Recovery For Urban Outfitters

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  Outfitters, Inc. – Options activity on the specialty retailer jumped on Wednesday morning as news of the CEO’s resignation saw shares in Urban Outfitters tumble more than 20% to an intraday low of $23.42. Still feeling bullish on Urban?  Take a look at the Feb12 25 calls.  Although I generally prefer to be a writer rather than a buyer of options, URBN’s decrease of almost 19% saw a 75% reduction in the February 25 calls from $3.30 down to $.80      via Options Players Wager On Recovery For Urban Outfitters, Gains For Textron – Forbes.

Get Asymmetrical in 2012 – Barrons.com

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Get Asymmetrical in 2012 By STEVEN M. SEARS | MORE ARTICLES BY AUTHOR Learn to look at the stock market through the options market. Options are arguably the most sensitive instruments for divining the future of stocks. The smartest stock investors dominate the options market. When they are afraid a stock may fall, they buy puts. When they think a stock will rise, they buy calls. Implied volatility, which reveals their expectations of the future, shows if they expect the stock move sharply, or not. By dividing an option’s implied volatility by 16 — the square root of the number of trading … Read more