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All options are a wasting asset whose time value erodes to zero by expiration. This erosion is known as time decay.

September was lousy. October was glorious. What can we expect in November and beyond?

Yesterday, as the S&P 500 was heading to a 1.2% loss, a trader was aggressively selling April puts in many retailers. Here’s an explanation of put-selling.

This week certainly wasn’t the maelstrom last week was, but after a promising bounce following Monday morning’s wipeout, the sellers have come back around for things—on the week, the major indexes are lower, though the declines aren’t horrific, especially for broader indexes like small and mid-caps.

Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies that are involved.

As the Nasdaq has fallen by approximately 5% in the last several weeks, and many stocks have fallen by much more, I’ve received many emails about how to play these stocks. For example, “Jacob, how would you recommend getting long XYZ at these depressed levels?”

Below is an article I wrote a couple years ago in response to a subscribers’ question regarding options and option volatility around earnings.

The bull market is back. But there seems to be a disconnect between recent stock performance and the headlines. What’s going on?

Here’s how to use time and delta to evaluate your options portfolio.

The earnings extravaganza is in full swing. It’s the peak of the season that marks the peak earnings growth of this extraordinary recovery. And the market is sort of yawning it off. Part of the issue is summer malaise. People just tend to focus more on enjoying the waning days of summer than stocks this time of year. But it also may be that this quarter just isn’t as important one might expect.

I’m often asked about the difference between Cabot Options Trader and Cabot Options Trader Pro, so here I explain the difference so that you can choose the right service for your needs.

A Covered Call is a strategy in which the trader holds a long position in a stock and writes (sells) a call option on the same stock in an attempt to generate income.

Buy-Writes vs. Naked Puts

So far, the post-Labor Day market has been just a little bit crummy. Stocks have drifted slightly lower over the past week. While that’s nothing alarming, it is a reversal of the summer market where stocks were drifting slightly higher. It could be that the balance has been tipped toward the negative.

So far, October has been volatile. There have been strong rallies that quickly become undone in the following days. The market is still even for the month, but it looks very unsteady.

A protective put is used when a trader is bullish on a stock he is buying or already owns, but is wary of the stock’s short-term future. It is used as a means to protect unrealized gains, while giving the trader continued upside potential.

As the market has rebounded just short of 2018 highs, an interesting and somewhat complex trade structure has become popular: 1x2 Bull Call Spreads.

I’ve received a ton of great emails from subscribers over the last couple of days about huge profits this year. I’m thrilled that you are making lots of money. That said, while it’s great that we are making good money, we must remember the risks as well.

As the market was falling apart and the VIX was exploding to multi-year highs, Cabot Options Trader Pro subscribers executed a short volatility trade, selling an Iron Condor. Here are the details of the trade and some of my commentary.

Although it went by way too fast, it’s been a glorious summer in the market. The S&P 500 is up 8% since Memorial Day. And the index is now up over 20% so far in 2021.