Category: Option Trading

  • 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.

  • 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.…

  • How Option Prices are Affected by Dividends

    Dividends usually bring smile on the faces of most investors except for some. Declaration of dividend by a company may upset a few people. Just ask an option trader holding a call option and you will know.  Dividends have an adverse effect on call option prices. I assume you have some idea about options and must be…

  • Which Is the Best Broker for Options Trading?

    Evolution of Internet has revolutionized how brokering services work. Gone are the days when you needed to pay prohibitively expensive broking charges to be in-an-out of a trade and had no access to technology or analytics. If you are a self-directed investor, these days you have plenty of choices to choose from. Ms. Theresa W Carey…

  • OP Income Newsletter Mar 2013 +15.3%

    Aiming to generate twice the SPX returns in 2013. OPNewsletter is very much on track to deliver my personal aim i.e. 2x the SPX returns by the end of 2013.  Jan 2013 was a solid +15.5%, Feb was +2.3% and March was +15.3% on max capital utilization of 36.3% thus effectively yielding +5.58% on the…

  • How To Calculate VIX Options Calendar Spreads Margin Requirement

    The Volatility Index (VIX), also widely known as “The Fear Index” has been gaining lot of popularity especially after the recent financial crisis. These days almost every major asset class has its corresponding VIX, and in fact several countries have introduced VIX equivalent for their leading market indices. After several months of trading it personally…