Posts By: Steve Claussen


BABA Options Debut on Monday!
Alibaba’s stock IPO was a huge success by most measures. Volume on day 1 totaled over 270 million shares and the price performance that day appreciated 38% from the IPO price. Chapter 2 of the trading life of BABA will commence on Monday morning with the listing of options on the shares. BABA is expected to…

Covered Calls Have Arrived!
One of my colleagues here at OptionsHouse, who is a tournament crossword puzzle competitor, shared with me last Saturday’s Washington Post’s puzzle. He highlighted the answer for clue for 17 across: “Options strategy also known as a “buy-write.” Those folks who attended our recent webinar should recognize that answer immediately! The Covered Call. My point is…

Weekly Options and Earnings
We are in entering the heart of the corporate earnings season with IBM and Google announcing their quarterly results after the close tonight. Many other highly traded stocks report next week including NFLX, MSFT, AAPL and AMZN to only mention a few. You can gain a look into the future by checking the Options markets. The premiums…

GoPro Options available for traders.
You have likely seen this company’s geeky looking cameras on ski and bike helmets as downhill skiers and mountain bike enthusiasts are able to record their daredevil exploits. This morning options on GoPro Inc. are listed and available for trading daredevils – only 12 days after the stock first became listed via IPO on June…

Don’t write off the VIX yet!
Among a flurry of articles stating that the VIX was broken, the old fear gauge finally shows signs of life today. After spending the last week with a 10 handle, levels not seen since pre-financial crisis in early 2007, a double digit decline in the S&P 500 futures yesterday caught some traders by surprise. The VIX…

GTC orders now available for spreads
Option spread trading are strategies which advanced traders have used to limit risk and limit rewards to increase the probability of success. We have outlined several spread strategies through the years which can be found in our webinar archives I am happy to announce to spread traders we have the added functionality on the OptionsHouse…

Wall Street is Depressed … and that is a good thing.
Barrons.com today ran an article worth reading in my opinion. It observes that pessimism among market strategists is at the highest levels since the market lows of 2009. The full article can be found here. The idea is if consensus opinion reaches an extreme, it is a signal to go the other way. If everyone is bullish it…

Sell in May and go away? You’re missing out!
Another of the old Wall St. adages I hear tossed about is “Traders sell in May and go away.” This means positive market movement in May typically hits a wall as traders sell out of their long, bullish positions, and their minds turn elsewhere as the weather improves. They typically come back in expectation of…

Cash Secured Puts “Risky?”
One of the questions which came out of our recent webinar was to elaborate on the cash secured put. Specifically, aren’t put sale trades riskier than other options trades and should be avoided “unless you really know what you are doing”? I agree you need to know what you are doing before committing any capital…

Fear and Greed
There is an old Wall Street adage that I believe is attributed to Warren Buffett which goes something like … “to be successful in the markets you need to learn to be fearful when others are greedy and greedy only when others are fearful.” Like so much of what the world’s greatest investor says, it…