Butterfly Spreads

The good news is that investors can slightly tweak many option strategies, including the butterfly, to gain maximum control over the risk and reward. The butterfly option strategy owes its popularity to its high reward-to-risk ratio, which might range from 4 to 1 to even 10 to 1. That’s risking $1 to make $4. The … Continued

The VIX Cheat Sheet

Interested in knowing how much the S&P 500 is expected to move? This cheat sheet will help! But first, get the last sale of VIX or type “VIX” into your search engine. Then, look up the corresponding VIX level and the outlook for the desired theoretical expected range. For example, in late August, the price … Continued

The Top Cannabis Stocks

With legalization of pot gaining traction across the country, it’s no surprise that cannabis stocks are becoming more popular. The list of publicly traded cannabis companies below is sorted according to the amount of stock traded daily. For example, Canopy Growth (CGC) trades an average of $162 million daily.  All of the ticker symbols mentioned … Continued

Reassessing Options in a Down Market

In drawdowns as when the Nasdaq, Dow Jones and S&P 500 recently found their way down 10%, 7% and 6%, respectively, from their prior peaks of a few months before, investors may want to focus on two questions: what are current positions doing, and, where does opportunity exist? Generally, problem positions fall into one of … Continued

No-Choke Collars

Instead of purchasing puts to protect a portfolio, consider the zero-cost collar  Some think of investing as a noble calling. It provides an opportunity to realize a profit, reduce the cost of capital, help create jobs and participate in the success of American industry. No wonder investors feel good when the markets are strong. But … Continued