Splitting Shopify May Be a Boon to Options Traders
April 14, 2022
Other

Splitting Shopify May Be a Boon to Options Traders

By now you almost assuredly know that Shopify (SHOP.TSX) announced a 10:1 stock split effective on a date to be announced.  With that announcement, SHOP joins Alphabet and Amazon in the club of internet stocks with high prices and pending stock splits. Although news of a stock split is generally considered a positive, let’s...

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1 month ago
What the Options Market Thinks About Earnings
September 09, 2020
Technical analysis

What the Options Market Thinks About Earnings

Use Your Interactive Brokers Trader Workstation to See What the Options Market Thinks About Earnings Expectations During earnings season, investors become justifiably concerned with analysts’ expectations for a company’s earnings and revenues. While analysts’ estimates provide an important framework for decision-making...

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2 years ago
Simplifying Complex Orders
June 01, 2020
Other

Simplifying Complex Orders

One of the best features of options is that they can facilitate a wide variety of strategies.  Are you bullish on a stock but don’t expect a rise in volatility?  Then a call or put spread might be for you.  Do you expect a big move in an ETF, but don’t know which direction is more likely?  Then a straddle may be the...

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2 years ago
Understand the “Rule of 16”
April 23, 2020
Concepts

Understand the “Rule of 16”

Professional options traders are really good at dividing and multiplying by 16.  That seems like a weird skill, but it is a crucially important one for anyone who wants to fully understand the terminology used in options markets.  No matter how you utilize options, the “Rule of 16” is critical for analyzing volatility,...

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