50% declines are commonplace for Tesla shares. How to trade the stock from here

Tesla (TSLA) , the electric vehicle giant led by Elon Musk, has long been a darling of investors seeking growth in the innovative technology and sustainable energy sectors. However, a recent sharp pullback in high-flying tech stocks has particularly hit Tesla shares. Tesla’s stock price declined by approximately 50% from its peak. While this drop […]

Tariff uncertainty has created a buying opportunity. How to use options to capitalize

Investor sentiment has drastically changed in recent weeks as tariffs — or the threat of tariffs — have been introduced to the markets. Last month’s discussion of awakening animal spirits and multiple analysts racing to readjust their 2025 S & P 500 targets served as a warning, as the Cboe Volatility Index (VIX) crashed under […]

How to produce income from Nvidia while waiting for a rebound

Volatility has returned as the Magnificent 7’s valuation is finally repricing. I want to embrace the volatility and produce income based upon the higher premiums investors are now paying for downside protection. I want to use options on the crown jewel of the Mag 7, Nvidia (NVDA) . Nvidia, the leader in the AI chip […]

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. […]