OptionsHouse is part of the E*Trade family

View all market commentary here.

29 February = Leap Day! Let’s Learn About LEAPs

29 February = Leap Day! Let’s learn about LEAPs

Today we “celebrate” Leap Day. Leap years occur every 4 years, perhaps not coincidentally in U.S. presidential election years to give politicians an extra day to convince us that they are the obvious choice to become our next leader. Yikes! I hope not. In reality, Leap Day is added to…

Read More
Market Downturn Got You Down?

Market downturn got you down?

Take a look at this MATRIX of potential Hedging Strategies and get back in control of your portfolio. The case for hedging. Too often I have seen retail active traders become paralyzed when the market hits the rough bear patch! An old Wall Street story goes when a short term…

Read More
Using A Portfolio Put To Hedge Macro Market Risk.

Using a Portfolio Put to hedge macro market risk.

The overall market has had a miserable start this first month of 2016. The S&P 500 index has sold off 10% before attempting to bounce yet remains down about 7%. There is a ton of nervousness and trepidation among investors as the VIX (CBOE Volatility Index) has spiked higher indicating…

Read More

Assessing your suitability level for trading options

Options involve risk and are not suitable for all investors. The benefit of options is that they can change the risk profile of straight stock. Investors can use any of the multiple option strategies available to hedge stock positions, employ leverage to risk less capital, or generate income from existing…

Read More
Advanced Trading – Ratio Put Spread Strategy

Advanced trading – ratio put spread strategy

The level of implied volatility remains elevated though well off the recent highs. A low cost, ratio put spread may be worthy of consideration for advanced option traders. This strategy presents a way to establish a limited downside hedge for little upfront cost, with a view that implied volatility may…

Read More

Using Parity PnL Graphs on the OptionsHouse Platform

Options give you options! In respect for the recently departed great Yogi Berra I state the obvious to illustrate the number one reason option trading has become so popular for individual self-directed investors. What I specifically mean is incorporating option strategies into an investment portfolio can change the risk profile…

Read More

Strategy Corner – Debit Call Vertical Spreads

The vertical spread is arguably the core strategy which professional option traders employ on a regular basis. If vertical spreads work for the pros, if understood, they can work for the sophisticated retail trader, too. A debit call vertical is simply buying one call and simultaneously selling a higher strike…

Read More
Basic Option Terminology

Basic Option Terminology

If you are new to trading options, familiarity with the language and terms used is important for your future learning. This blog is intended to assist and decode the "options-speak" used in our webinars and blogs. What is an Option?An option is simply a contract between buyer and seller which…

Read More

Options strategies for volatile markets

The Dow Jones Industrial Average made its largest intraday point swing ever this past Monday. Then throughout the week, the DJIA continued to make gap moves in both directions. By the end of the week, the DJIA had moved more than 10,000 points traversing the chart both up and down…

Read More
DJIA Tachycardia? A Shock To The System, For Sure!

DJIA Tachycardia? A Shock To The System, For Sure!

When the Dow Jones Industrial Average makes its largest point move ever, the chart kind of looks like an EKG of an irregular heartbeat. Watching the news and reading the headlines can make it feel that way, too. It is times like these that force investors to take stock of…

Read More
Trading Tools For Sorting Out Market Volatility

Trading tools for sorting out market volatility

What a week! Friday's fall in the SPX was the 8th largest point decline, but the 3.1% the index shaved from its value didn’t come close to making the top 20 percentage sell-offs. Monday morning the pre-market futures (-75 points) are indicating a very weak open to trading. Volatility is…

Read More

Option Expiration, Assignments and Exercise

One of the more misunderstood aspects of trading options for new investors is the option’s expiration process, exercise and assignment of their open contracts. Since we are coming up to the monthly August expiration this Friday, it seems timely to address this and shed some light on these option terms…

Read More

Trading Elevated Volatility During Earnings Season

I wrote this blog last Thursday at noon, before Amazon's surprise earnings announcement and subsequent spike in the pre-market the following morning. Now, what is interesting is we can look back on the actual results and Monday Morning Quarterback my premise. (Spoiler alert: I couldn't have been more wrong with…

Read More