Gavin McMaster has a Masters in Applied Finance and Investment. He specializes in income trading using options, is very conservative in his style and believes patience in waiting for the best setups is the key to successful trading. He has been trading options since 2004 and teaching traders since 2010. Follow him on Twitter at @OptiontradinIQ
A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are being traded.
Market volatility is around the lowest levels we’ve seen in the last six months. A lot of stock are showing a low implied volatility percentile.
This week, we have Costco (COST), Dell Technologies (DELL), Marvell Technology (MRVL) and Salesforce (CRM) all reporting.
Next week we have some additional earnings, a US bank holiday, consumer confidence, and inflation data.
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Today we’re looking at a broken wing butterfly trade that creates a profit zone between $160 and 175. Yesterday, the stock closed around $180.
Yesterday, the VIX index closed below 12 for the first time since December last year.
Traders selling this put would receive $185 in option premium. In return for receiving this premium, they have an obligation to buy 100 shares of MRVL for $70.
Earnings season is slowing down, but we do have the most important stock in the world – Nvdia (NVDA) reporting this week. There are also some other key tech name and major retailers.
There was some wild volatility last week as PPI came in hotter than expected and CPI came in just under expectations on the monthly basis. This small decrease in the inflation rate was enough for Fed heads...
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Is Nvidia (NVDA) the most important stock in the world? It sure feels that way at times.
