Tesla True Believers Lose Faith – I Was a Heretic for Saying So

Tesla’s most ardent fans are beginning to lose faith — and I was demonized for pointing it out. When I warned on March 25 on CNBC.com that Tesla shares looked vulnerable, the reaction was swift and angry. After all, investors love Elon Musk and I understand why; he’s...

What the Heck is Option Dispersion?

Option Dispersion is a Powerful Tool but What the Heck is It?Dispersion trading is a powerful strategy for option traders but what the heck is it? Let's find out.Dispersion Trading Stock option dispersion trading is an advanced strategy that exploits differences...

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It makes no sense but is completely logical

It makes no sense but is completely logical

It makes no sense but is completely logical and serves as a fantastic signal for traders. It is option skew, the tendency for different strike prices in the same expiry to display different, often very different, implied volatilities.This is a chart of this morning’s...

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CallDex and Covered Calls

CallDex and Covered Calls

CallDex and Covered Calls Do you remember the first option trade you made?  It was likely selling a covered call and for good reason.  A covered call takes advantage of the fact that options usually cost more than they’re ultimately worth and it also takes advantage...

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