Category: Trade ideas

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

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.

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

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.

Today’s trade idea for option traders: Old Republic International (trade closed)

It’s literally just a couple of days ago when I closed my last trade on ORI which was a bit special. But as the price of Old Republic International had hit its all time high and continues to rise, I’ve set up another trade which I would like to introduce to you. This one is deep in the money, because of its expiration in June it was possible to choose the strikes only in 5 point steps. So check it out, folks.

Today’s trade idea for option traders: Radian Group Inc (trade closed)

Never heard about this company? To make it succinct: Radian Group Inc. engages in the mortgage and real estate services business in the United States. The company was founded in 1977 and is headquartered in Philadelphia, Pennsylvania. Today I’d like to introduce you the next trade opportunity on options, folks. It’s another trade in the money due to lack of implied volatility in this stock. But nevertheless, it could be a good chance for someone. So let’s check it out.

Today’s trade idea for option traders: Old Republic International (trade closed)

Never heard about Old Republic International (ORI)? This traditional insurance company is considered as Berkshire Hathaway of the insurance industry. As a value company, you can expect from this stock steady and increasing dividends. Although the business model of ORI similar to any other insurer, this company has demonstrated the ability to compound book value and earnings over the long term. That’s why I’m happy to get a chance for an options trade on ORI. The reason for this is that if you get this stock assigned, the risk you would lose money with it in a long-term perspective is pretty low. Check it out, folks! Disclaimer:The information I am giving you in this article is for informative purposes only and should not be treated as investment advice. The information presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in trading activities related to the information in this article should do their own research and seek advice from a licensed financial adviser. Type of a trade: Cash secured put (in the money)Alternatively: Bull put spreadExpiration: 16th April (36 days)Strike: $24Premium for 1 option: between $200 and $240 on the day this article was publishedMargin: apprx. $300 on the day this article was published Pros for this trade:– A pretty strong long signal (I’m using the ADX-Indicator), giving a higher probability that the price would hit the strike in the next 36 days– A dividend of 4.07% on the day the trade…