The Posted Bid/Ask is Negotiable
I had the privilege of attending the Canadian Annual Derivative Conference in Montréal recently. Although it’s an event I’ve been attending for at least 20 years, this was the first time my perspective was that of a former options market maker rather than an active one. As usual, I learned about unfamiliar aspects of...
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...
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...
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...
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,...
Steve Sosnick
Chief Strategist, Interactive Brokers
10 posts
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