Author: OptionPundit

  • 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…

  • 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…

  • Vertical Spread Strategy Explained

    Vertical Spread Strategy Explained

    Vertical Spreads Strategies are one of the most versatile form of option trading strategies. Some of you by now have become really good at Options Trading using Vertical Spreads for Income. But if you’re still struggling to nail Vertical Spread strategy, or if you’re just getting started in options trading world, this comprehensive article is most definitely…

  • Trading FOMC Event Via Bearish Butterfly Spread

    Trading FOMC Event Via Bearish Butterfly Spread

    Arguably, the most important day of the year for the stock markets is right here. In about an hr, FOMC decision on interest rates will be announced. Almost everyone is expecting a 25bps rise! Whatever the FOMC decision maybe, there is a speculative Option trade opportunity on either side. Though, I am bearish, the similar strategy can…

  • What is Options Trading? Top 10 Things You Must Know Before Trading Options

    What is Options Trading? Top 10 Things You Must Know Before Trading Options

    Options Trading can be extremely rewarding. However, it is also a fact that majority of Options traders struggle to make money consistently. Before you begin to trade options, it is crucial to understand basic nature of options and how Options are different from other trading instruments e.g. stocks or forex. Here is simple, straight forward…

  • Don’t Trade Options If…

    Don’t Trade Options If…

    Don’t trade options! Yeah, you are reading it right. We at OptionPundit, a premium Option focused website, are telling you not to trade options!! In fact don’t trade stocks, forex or commodities also if you can’t put your heart-n-soul into it to understand how it works and what does it take to succeed in that business.…

  • Who Will Ring the Bell?

    Who Will Ring the Bell?

    “Buy America. I am” said Mr Warren Buffett on Oct 16,2 008. He announced to the whole world that he was buying american stocks, and those who listened to him, probably made a great fortune. So will Mr. Buffect announce “Sell America. I am”? I have great admiration for Mr Buffett. However, I don’t think…