option trading

Apple Inc. (AAPL), the biggest publicly listed company on the planet is about to announce earnings on Apr 24th, after markets are closed. It is estimated that nearly 200+ Hedge funds have AAPL shares in their portfolio. And it is one of the most commonly talked about stock on almost every main stream financial media, [...]

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What is Option Assignment and Is it always bad?

by OptionPundit on December 1, 2011

Option Assignment is one word that a lot of option traders are scared of. For a primer of what is an option assignment, let me share the basic concept first. This is a detailed explanation from The Options Industry Council. You may also learn more from Pete here. The option holder has the right to [...]

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How High Netflix (NFLX) will Go?

by OptionPundit on December 1, 2010

Netflix (NFLX) has been a shining star and shorts have been pushed against the wall time and again. After lingering between $20-$40 for several years, NFLX has gone from $50 to $200 YTD alone, in a 45degree straight line. See attached chart for YTD performance- After watching it for sometime, I am amazed by the [...]

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What is a Conservative Trading Strategy?

by OptionPundit on October 5, 2010

Recently there was discussion on OPDiscussion forum regarding conservative vis-a-vis aggressive option trading strategies. This is something that as a trader we face day after day so I thought why not I share my thought with the broader readers. Though there are obvious aggressive and less aggressive strategies, there are a few things that one needs [...]

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How to Trade Japanese Yen via Options

by OptionPundit on September 14, 2010

Forex market is a big market providing round the clock trading as well as huge leverage. Leverage is a double edge sword. If you are not hedging properly, then forex trading could also mean a ticket to emptying your trading account quickly. So if you want to trade forex but still want to limit your [...]

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