Sentiment Signal Flashing for First Time in 2 Years

Since the February correction and subsequent stock market chop, investors have been reducing their exposure to equities. Not only did exchange-traded funds (ETFs) see a second straight month of negative outflows in March — something we haven’t seen since the financial crisis of 2008, per State Street Global Advisors — but…

Read more »

The ‘Bonus Dividends’ Most Investors Forget To Collect

I hate to say tell you this… but if you’re an income investor, then chances are you’re leaving money on the table. Why? Because I’m willing to bet that 9 out of 10 of income seekers haven’t even considered the simple technique that can deliver extra “bonus” dividends to their…

Read more »

Unlock Unlimited Profits During Earnings Season With This Simple Strategy

We all know that President Trump signed a $1.5 trillion tax cut into law in December, which was deemed the first significant tax reform signed into legislation since Ronald Reagan back in 1986. We also know that all the talk last earnings season was that companies felt good about their…

Read more »

This Should Be A Priority For All Options Traders

There are few people out there I respect more than the guys at OptionAlpha.com They write… “As options traders, we need to focus on the levers that really move the needle in terms of generating income and cash flow for our portfolio. There’s no point in doing something if it…

Read more »

Micron ‘Straddles’ Looking for Huge Move After Earnings

Micron Technology Inc. investors should expect to be surprised when the company reports earnings, as the options market is preparing for a bigger-than-average post-results reaction in the stock. The memory-chip maker MU, -3.09%  is scheduled to report fiscal second-quarter results after Thursday’s closing bell. Investor and analyst expectations appear to be running relatively high, as…

Read more »

Selling Put Options for Income – Why it Works

Selling put options for income is an interesting way to generate returns in any portfolio for investors who understand the risks. Let’s take a look and see why selling put options actually have a lot of similarities to successful insurance companies and why selling put options often outperforms buying them….

Read more »

Ford Options Traders Bet Stock Will Fall 25% This Year

(Note: The author of this fundamental analysis is a financial writer and portfolio manager.) Not all investors are bullish about Ford Motor Co. In fact, options trader are betting Ford shares will fall – not rise – by yearend. The options that expire on January 18 of 2019 suggest that traders…

Read more »

The 7 Key Traits of Buffett’s Success

In 1962, a successful young fund manager named Warren Buffett began buying sleepy New England textile firm Berkshire Hathaway. He wasn’t interested in the textile business itself, just in the firm’s cash. While the business wasn’t growing, Berkshire generated copious free cash flow and had plants, equipment, and land that…

Read more »

The Essential Guide To Trading Options For Free

Ah…free. Who doesn’t love things for free? A huge part of the revenue generation for online brokers come from options traders. Anyone who has compared the cost of trading options vs stocks knows first-hand that options are expensive. Since many traders work their success off of thin margins, those costs…

Read more »

This Trade Could Yield a 67% Winner

Volatility has increased this year. And now that we have some data on earnings, so we can gauge the probable direction of future volatility. Earnings were generally strong in the most recent quarter, but they were also largely distorted by the new tax rules. You see, companies are required to…

Read more »

Twitter Setting Up for 185% Profit

This morning my LOOT! readers received this in their inboxes. Twitter’s [TWTR] stock is trending both higher and more favorable to investors recently poised to test its multi-year high. Traders can use a limited risk option trade to ride this recent momentum using a vertical call spread. Twitter’s IPO in…

Read more »

China Just Shut Down It’s VIX…

While most of the world saw regional equity markets covered in red overnight, China’s Shanghai Composite rebounded, rising 2.2% for two reasons: i) a delayed reaction to global equity prices after the country’s 5-day Lunar New Year holiday and ii) China’s latest crackdown on anything that can precipitate a selloff, like a…

Read more »