OptionPundit: a blog about trading options, successfully.

  • And Now an Index to Track Trump Tweets, welcome ‘Volfefe’ index

    And Now an Index to Track Trump Tweets, welcome ‘Volfefe’ index

    JPMorgan has created a ‘Volfefe Index’ to track how President Trump’s tweets affect financial markets. With over 64million followers, President Trump is widely known for his tweets. And since he started asking Fed to lower rates, those tweetstorms have actually started to impact financial markets. In fact, since trade war with China intensified, more and…

  • Why Should You Paper Trade Options

    Why Should You Paper Trade Options

    Will you skydive without knowing how to operate your parachute?” Investing and Flying are similar, in some ways. Many new traders doubt if Paper Trading is still relevant?

  • US Presidential Elections- How Will Stocks React?

    US Presidential Elections- How Will Stocks React?

    Do presidential elections affect US stock market? How will stocks react to Mr Trump’s or Mrs Clinton’s win? Based on historical data, it may not be smooth sailing for the stock market this year. Since 1900, On average, The S&P 500 has dropped an about 1.2 percent in 4th year of second presidential terms.

  • After this, Is Apple Inc About to Fall From the Tree?

    After this, Is Apple Inc About to Fall From the Tree?

    On April 26 after market close, Apple Inc. (NASDAQ:AAPL) reported earnings for its second fiscal quarter and issued guidance for its third fiscal quarter. Apple posted its first-ever decline in iPhone sales and its first revenue drop in 13 years!!  

  • This is how you trade Market Uncertainty

    This is how you trade Market Uncertainty

    Valeant Pharmaceuticals Intl Inc (VRX) dropped over 50% on Tuesday trigerring billions in losses for Hedge funds including the famed investor Mr Bill Ackman of Pershing Square. Is there a way you could have profited while big funds lost billions? Straddle spread is one such strategy that can be used in such instances.

  • Bear Vertical Spread Explained

    Bear Vertical Spread Explained

    What is a Vertical Spread? We explained this at great length in the previous article using an example of Bullish Vertical Spread. We explained all the basics of vertical spread, how to structure it, how to analyze its risk reward profile and how to interpret profit & loss of a bullish vertical spread. This article is…

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