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Hot Option Plays: New XPOUND

Stock market averages are holding gains despite mixed economic news Tuesday. The table was set for early gains on Wall Street after European stock indexes moved broadly higher on hopes Greece can avoid defaulting on its debt. There’s optimism that Greek parliament will adopt an unpopular austerity plan despite angry protests in the streets of Athens. The euro has added .5 percent against the dollar. In the US, some of the early focus was on the S&P/Case Shiller Index, which showed home prices improving in US cities for the first time in 8 months. Separate data released later was less bullish. According to the Conference Board, consumer confidence fell in June. The index declined to 58.5, from 60.8 the month before and below estimates of 62.0. Yet, stock market averages brushed off the poor consumer confidence numbers and seemed to take their cue from action overseas instead. Through midday, the Dow Jones Industrial Average is up 118 points. The tech-heavy NASDAQ gained 31. CBOE Volatility Index (.VIX) is down .83 to 19.73. Overall options volume is picking up from yesterday’s slow pace, with 3.9 million calls and 3.5 million puts traded through 12:30pm ET.

Bullish Flow shares are sprinting higher on better-than-expected results. After the close of trading yesterday, the company reported a fourth quarter profit of $1.24 per shares on $5.77 billion in revenues. Analysts were expecting $1.16 on $5.53 billion. NKE is running $5.66 higher to $87.28 through midday. Options volume is 25,000 calls and 26,000 puts, which is 5X the average daily for the name. July 90 calls, which are now 3.1 percent out-of-the-money and expiring in 17 days, are the most actives. 6,545 traded. Meanwhile, implied vols in NKE options plummeted 28 percent to 25 now that the earnings event risk has passed.

An interesting trade surfaced in the iShares Japan Fund today. Shares are up 10 cents to $10.18 and one investor sold 100,000 September 10 puts. They sold half at 27 cents and the other half at 28 cents. Open interest in the contract is 126,911 and so today’s put write might be a closing trade. If so, it likely exits a position opened in early-April and not long after the Japan quake rattled the Northern region in mid-March. If so, the investor is possibly anticipating that volatility across Japan’s equity markets will continue to ease in the months ahead and is closing out a bearish trade (or hedge) in the Japan fund.

Free Virtual Stock Trading Can't Break the Online ... - Linknet Blogs

Wealth creation for investors is a simple concept. Most of self-directed investors struggle to find ways to improve their wealth. Online Investing using stock investing and options will be an excellent way to inspireyour income, profits and retirement funds.

Investors, who want to spawn income, manage risks, and take control of their online investing, might take in these multiple steps to smart online investing with options:

Establish your online trading account. Find a reputable discount broker, with reasonablefees, that has a “Free Virtual Stock Trading” platform, widespread tools and research and is noted for options.

Obtain stock and option education to further your knowledge. It is central to find comprehensive trading education covering investing basics and complex trading strategies to gain experience. Subscribe to a free options trading newsletter.

Conquer broker trading tools. Prevailing online investing tools help find, analyze, and monitor options trading strategies, investments and their achievement.

Trade a diversified portfolio for protection. Set up your portfolios with an assortment of options strategies to make money in Bull Markets, Bear Markets, and Sideways Markets. Select options strategies to give fair to middling time but if the trade gives abundant profit early then sell, change, or re-arrange the trade structure. Make long trades for rising sectors and short trades for waning sectors.

Income generation is the key to uniform returns. Options can be used to create cash from stock assets in a variety of market conditions. Some investors’ use covered call and put writing, which is options strategies to earn income against stocks and is in truth more sensible than just buying a stock.

Investigate all available option-trading strategies. Calls, puts, covered calls; spreads, vertical spreads and back spreads extend many varieties for successful option strategies. You should begin with old school options strategies to gain experience.

Be careful to understand market mindset and direction. Market outlook and direction is relevant to investment success. Examine 5 articles a week from professional newsletters, brokers, fiscal advisers, and others.

For each market sector, select the best stocks. List your fundamental criteria to match your investment goals. Include items on your list like debt ratios, Price/Earnings ratios, Price/Sales ratios, profit margins, and growth rates. Run regular scans to find the top 5 companies for each sector.

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