Year: 2021

Trade ideas

Today’s trade idea for option traders: Bed Bath and Beyond

trade idea for option traders

It’s been a while since I published a new trade idea. The reason for this was that since a couple of weeks the most stocks were rather bearish than bullish. Besides that, the Implied Volatility was too low to get a decent premium. And what should you do in such periods? The answer is simple – do nothing! Stay out of the game and wait, don’t force it. The next opportunity will come for sure which is maybe right now. That’s why I like to publish the next trading idea on options. This time it’s again Bed, Bath and Beyond. I already published a trade on this stock (check it out here). So let’s see if the idea will work out on this stock again.

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Education

Why and How Should We Use Covered Call Strategy- The Basics of a Covered Call Option

covered call, covered calls, selling covered calls, covered calls basics,

The popularity of covered call option strategies stems from the fact that they allow traders to hedge their holdings while also possibly generating additional profit. Professional market players imply a covered call strategy to boost investment income. Still, individual investors can benefit from this conservative but effective option strategy by taking the time to learn how it works and when to use it. Let’s take a look at the covered call in this context and see how and why to use the covered call strategy in business! So, let’s get started! (more…)

Trade ideas

Today’s trade idea for option traders: Bed Bath and Beyond (trade closed)

trade idea for option traders

I think, everyone knows this company. At least, in the United States. The struggling retailer has been shrinking its portfolio and restructuring the business due to crass operating results in both 2019 and 2018. The good news is that BBBY is emerging from the pandemic with improved sales although investors should still expect a couple of tough few years ahead. And as the indicators are showing an up move, it’s worthwhile to try an options trade on this stock. So let’s check it out, folks.

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Trade ideas

Today’s trade idea for option traders: First Horizon Corp (trade closed)

trade idea for option traders

It’s another bank, folks. Some shareholders may be concerned to see that the Director, Roger Taylor, recently sold $5.5m worth of stocks. But if insiders are selling that doesn’t always mean that there is something wrong. If you don’t believe me, a regular trading guy, maybe you would believe Peter Lynch where he describes this situation in his book “One up on Wall Street“*. Fundamentally, First Horizon has a good stand and a positive outlook, also due to merger with IBERIABANK. Anyway, as option traders, we always are looking for positive short-term opportunities. And the next one is right now. So check it out, folks.

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