Month: February 2021

Trade ideas

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

trade idea for option traders

Vuzix Smart Glasses is a producer of augmented-reality (AR) glasses to free the people hands and increase productivity of maintenance technicians. Former generations of AR glasses, like Google’s, had largely failed with private consumers, but manufacturers have found new use cases in industrial and enterprise markets. Sales of Vuzix Smart Glasses jumped by 156% in the third quarter and Cathy Wood’s team from ARK Invest bought recently a stake in this company. So fundamentally, Vuzix seems to gain a foothold in the markets. From the trading perspective, there is an opportunity for option traders to try this one.

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Trade ideas

Today’s trade idea for option traders: HP Inc. (trade closed)

trade idea for option traders

Who doesn’t know HP? Originally, one of the early Silicon Valley stocks, the shares of this company continue to underperform the overall technology sector. Although company’s approx. 3% dividend yield is enticing, long-term investors should understand the risks before buying shares of HP. For the glorious growing days of this original tech company actually are gone, at least at the moment. Results of efforts to establish a profitable 3D printing branch are not to be expected soon. But as options traders are usually short-term oriented, there is gathering a momentum in this stock which provides a trade opportunity on HP. So read on, folks.

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Education

Why you shouldn’t sell naked call options on stocks

naked call option, naked call options, call option, sell call options

When I started trading options, I thought it was more dangerous to sell puts. The reason for this was my conviction that a stock’s price is falling faster than it’s increasing. In general, this statement is not false. But the more experience I gained the more it got clear that actually the call side is the more “dangerous” one.  There are, of course, situations where it’s worth to sell call options on stocks. But in general, selling calls turned out to be riskier than selling puts. In this article, I’ll explain you the reasons for it and also show you situations where it’s nevertheless worthwhile to sell call options. (more…)

Snoopy Alien