Option Sensei

Probability and Profitability

— February 10, 2015

It’s a well-known investment maxim that risk is correlated to reward. But when it comes to options it seems people are often making claims to both consistently hitting singles while simultaneously being home run kings.

Take a Long Trip with Priceline
— February 5, 2015

Shares of Priceline could be poised to fly higher as it cements its position as the destination for online travel.
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Dipping Into Oil Through this Energy Exchange Traded Fund
— February 2, 2015

Use a Calendar Spread to Profit while Waiting For Energy Stocks to Recover No one predicted the price of oil to crash by 50% to below $50 per barrel over the past six months. And no one can honestly predict where it will be in the next six months. But I do think the share […]
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Double Feature
— January 23, 2015

Pairing up these two theater chains present distinct views on the future of movies. You never know which films might be a hit which makes investing in studios a high risk venture. But there are several very clear trends in the way we consume moving pictures that sets up an interesting investment opportunity.
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Short Screen Turns Up this Tech Name Ready to Turn Down
— January 16, 2015

The tone of the market has certainly changed over the past week. The broad market red flags we waved last month are now morphing into stock specific problems. Earnings season has started on a very sour note. We are losing industry after industry as companies post disappointing results and stocks are being taken out one by […]
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Pump Up Your Income Stream with Gas Station Play
— January 12, 2015

Combining this options strategy with this company’s high dividend yield could deliver 20% gains even if the stock stays still.
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Adding an Income in Oil Trade
— February 4, 2015

On Monday, we took a timely dip into a bullish position in oil through a diagonal calendar spread in the SPDR Energy Select (XLE) exchange traded fund. Shares of the Energy ETF jumped some 3% on Tuesday to $80 per share pushing the value of our spread position fully in-the-money and its value from $2.75 to $3.50 in a single day.
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Google Earnings Play
— January 28, 2015

Making trades based on an earnings report poses several challenges but can deliver big rewards as the reports tend to cause large price moves. One not only needs to accurately predict what the company’s actual results will be but how these stack up to analyst estimates.
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Iron Condor For Income
— January 20, 2015

This option strategy has an 80% probability of delivering a 40% return in one month. As we get through earnings season and the ECB event uncertainty should subside bringing volatility levels lower.
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Portfolio Protection
— January 13, 2015

Against a shaky backdrop, rising volatility here are four ways to protect your portfolio heading into earnings season.
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Option Sensei

Probability and Profitability

Take a Long Trip with Priceline

Dipping Into Oil Through this Energy Exchange Traded Fund

Double Feature

Short Screen Turns Up this Tech Name Ready to Turn Down

Pump Up Your Income Stream with Gas Station Play

Adding an Income in Oil Trade

Google Earnings Play

Iron Condor For Income

Portfolio Protection

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