How to use options to enhance the income from this dividend-yielding agricultural play
As the final installment of our three-part “Dogs of the Dow/S & P 500” series of articles, we’re following up on Monday’s trade idea in ConocoPhillips , an idea for an “oil” company of another variety. Rather than an energy sector oil/petroleum company, this time, we’re discussing a consumer staple that makes edible oils. Bunge […]
This chip stock hit a rough patch. How to use options to play a bounce
Advanced Micro Devices remains one of the most compelling opportunities in the semiconductor space, well-positioned to capitalize on the ongoing AI revolution, accelerating data center demand, and robust growth in high-performance computing. Despite recent stock weakness, AMD’s strategic positioning in emerging technologies, particularly its MI300 artificial intelligence accelerator s and EPYC server processors , gives […]
Health care looks cheap going into 2025. How to play it with options
The health-care sector is looking cheap heading into 2024, but uncertainty looms in the new year as the Trump administration takes the reins. We’ll describe an options play to capitalize on the price action as 2025 kicks off. Over the past 10 to 20 years, the health-care sector in the United States has grown significantly […]
How to trade the market when volatility spikes
In a sharp, late-day selloff on remarks by Federal Reserve Chairman Jerome Powell, Wall Street’s fear gauge — the CBOE Volatility Index — spiked to 27.62, the highest level since early August . It’s undoubtedly true that equity investors should “not fight the Fed,” and the Fed is not sending bullish signals, at least not […]
How to play a potential biotech breakout in 2025 with options
The iShares Biotechnology ETF (IBB) tracks the performance of the Nasdaq Biotechnology Index, providing exposure to U.S.-listed biotechnology and pharmaceutical companies. It is one of the most popular ETFs for investors looking to access the biotech sector, which focuses on cutting-edge advancements in medical research, drug development, and genetic engineering. In this article, I analyze […]
How to know when it’s time to take profits in your 2024 winners using charts
Several stocks have seen exceptionally strong rallies in 2024 following base breakouts in 2023. Names like Palantir (PLTR) and Applovin (APP) , which are up roughly 325% and 765% year-to-date, have “gone parabolic” post-election. In steep uptrends like theirs, it can be difficult to determine when it is appropriate to take profits, and we can […]
How to keep generating income from a tech-stock winner using options
As our Meta (META) trade from early November approaches expiration with 77% of the maximum profit captured, we are rolling the position to maintain our bullish exposure. META has now broken out above its $600 all-time highs and is forming a solid base above this level, signaling the potential for another leg higher. The stock […]
How to play this struggling tech stock for upside, while protecting for the downside
Virtually all investors aim to identify stocks that offer growth potential while being reasonably priced relative to their fundamentals. This approach is often associated with legendary investor Peter Lynch, who advocated for a balanced approach to investing. I have found an example of one such stock and how to play it with options. To characterize […]
How to buy a health care turnaround story at a discount using options
Dexcom (DXCM) , a leader in continuous glucose monitoring (CGM) systems, has positioned itself as a standout in the medical device space by leveraging innovation to maintain dominance despite rising competition. The company’s investments in digital health platforms and integration with consumer brands further solidify its competitive advantage. Investors are starting to pay attention to […]
A key U.S. inflation report looms over Wall Street. How to trade it
The October personal consumption expenditures price index report has many investors wondering how it may impact the postelection market rally. The S & P equal weight index has outperformed the market cap-weighted S & P 500 since Nov. 5. On top of that, more than 100 S & P companies hit new highs on Monday. […]