How to bet on Hoka taking more gains from Nike using options

Pairs trading is a market-neutral strategy that involves buying one asset while shorting a related asset to profit from temporary pricing divergences. Typically, traders select two highly correlated assets — such as stocks, commodities, or currencies—that usually move together, like competing companies in the same industry (e.g., Ford and General Motors). The approach assumes that […]

The fundamentals and charts point to an Alibaba comeback. How to profit from it

After languishing for multiple years, Alibaba (BABA) has finally started to show some momentum and signs of a potential turnaround for its business. This aligns with developments in China, where the government is easing regulatory pressures on its tech sector to revitalize the economy and accelerate its AI ambitions to rival America. BABA, a titan […]

Why Walmart’s stock may continue to struggle and how to capitalize on it

I’ll review why Walmart, the largest retailer in the world, has stumbled and why the stock may continue to come under pressure. I’ll give an options trade that wins if the stock continues to struggle. In the past 45 years, Walmart has posted only one modest year-over-year sequential sales decline of -0.7% in FY2016. The […]

How to bet on an AMD comeback with options using a ‘recovery trade’

In physics, the “observer effect” is an observer’s impact on the behavior of the subject being observed. Traders and investors are more than mere observers; they are participants. In such a system, it’s possible to create a feedback loop in which traders’ perceptions impact prices (or even fundamentals), which impacts their perceptions. There may be […]

How to keep profiting from this health-care stock that’s breaking out

Back in December, I laid out a bullish thesis on Dexcom (DXCM) where we sold a Jan $80 Put for $4.50. Those options have expired worthless, and we collected 100% of the maximum gain and the stock has recently broken out above its trading range, I see a new opportunity to seek further upside exposure. […]

Tech stocks are getting hit as yields surge. How to profit from that volatility

Markets are struggling to find direction in the new year and the hotter-than-expected jobs report Friday caused even more confusion. The nonfarm payroll data spiked U.S. Treasury yields and created selling pressure across all three major U.S. equity indices. Technology stocks continue to see some profit taking and I want to create income on any […]