Articles for tag: Investing, options

May 23, 2024

Ron Finklestien

Options Alert: Asymmetric Trade Setup in the Russell 2000

At this point, we are all aware that the Russell 2000 has severely underperformed the broad market indexes over the last year. The chart below illustrates just how wide the performance gap between the Russell 2000 and the S&P 500 is. We can see that the two indexes were quite correlated until Q2 2023. It was at that point that a banking crisis ensued, and interest rate policy expectations began to change.   Russel 2000 ETF Poised to Catchup? However, I believe we are likely to see this spread close, and the Russell 2000 ETF IWM may play catch upagainst the S&P

May 23, 2024

Ron Finklestien

The Upside of Market Volatility

The ability to adapt to markets is what separates the good traders from the great ones. Applying the right strategy that will outperform in a given market condition is paramount to trading success. Options provide us with that flexibility, enabling us to tailor our strategy to the current market environment. The benefit of increased market volatility is that option premiums become very rich. If we purchase an option, we will need to pay a higher premium due to high market volatility. But when we are the option seller, we’ll receive high premiums in the form of cash credited to our

May 14, 2024

Ron Finklestien

Asymmetric Opportunities: Options Trade in Top Ranked Tech Stock

Google parent company Alphabet GOOGL, reported strong quarterly earnings several weeks ago, crushing estimates and gapping significantly higher. Continued strong growth in key segments like search, YouTube, and cloud computing propelled YoY sales growth back into double digits (13%). Management at Alphabet is extremely excited about the prospects of the AI revolution as it will both enhance productivity at the company and drive continued growth as other companies utilize Alphabet’s products and services. Thanks to the prospects of AI and the reacceleration of growth at the technology giant, analysts have begun revising earnings estimates higher. Earnings expectations have increased by as