Join AGT as we host Option Hotline's chief options strategist Keith Harwood to present what technical and options setups he traditionally looks for to take advantage of an options calendar spread.
Option calendars can be a very powerful tool, but need to be used at the right time to maximize the leverage that they can provide.
Don't miss out on this one as Keith will show when and how he implements an option calendar in his professional trading strategies!
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One of the best ways to make money is by trading fear – just like famed investors have done.
Warren Buffett says that a “climate of fear is your friend when investing; a euphoric world is your enemy.” Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”
With a good deal of fear priced into the tech sector, here are three hot stocks to consider.
Advanced Micro Devices (AMD)
One of the best tech stocks to consider is Advanced Micro Devices.
Not only has growth been explosive, but the company continues to chip away at competitor market share, which should continue for some time.
Better, earnings have been solid. In its fourth quarter, the company posted adjusted EPS of 69 cents, which was above Street estimates for 67 cents. Sales were up to $5.6 billion, which was above estimates of $ 5.51 billion.
There are three basic types of spreads: the intra-market, the inter-commodity, and the inter-market spread. The intra-market spread, also known as an inter-delivery spread, is by far the most common spread. When using this type of spread, the trader would be buying one month and selling another month in the same commodity. An example of this would be buying October cattle and selling December cattle.
The inter-commodity spread consists of buying one commodity and selling a related commodity. Traders use this type of spread when they feel that there is a disparity between the two commodities. An example of this would be if traders felt the price of corn was too low as compared to oats. To take advantage of this possible disparity they would buy corn and sell the oats.
1. ETF Revolutions
With 30 year anniversary, what has the creation of ETF's to trade done for the markets...?
Alan points out positive things. It's significant to point out is that a lot of times when markets get key levels, there seems to be some entry and exit of index money and that's what we may see here at these levels with the S&P at the 4,000 level. Here at the 200-day moving average that if we can push above this and that can be a technical signal for more money to come in, so ETFs can drive the market a little bit. Phil says ETF's created a way for smaller investors to get exposure to a lot of things that they could never touch in the old days. They've created a lot of opportunities, you've got triple shorts, double shorts, double longs. Put it all together, it's a more precise economic tool to help control risk and that's a good thing.
2) Stove ON or OFF
Debunked rumor that Federal Government was looking into banning Gas Stoves...Is that why NG is back down to $2 and can it flame UP again?
Phil says long-term natural gas looks really good. Natural gas probably saw a lows that they might not see for many decades to come and the reason why i say that is because the United States is now going to be the natural gas producer for the world. We are going to see the exports of liquefied natural gas hit all-time highs and the energy transition is still going to need a lot of natural gas. Alan is looking at UNG, the natural gas ETF trading around $8.50, you could buy the $7 call, which is below that low, to trade for about $3. Position yourself for the longer-term in this ETFf that was trading at 34 back in August.
3.Volmageddon View
There are concerns that the volume of 0DTE options can cause risk to the markets, what are your thoughts?
Alan thinks it's no different than adding weekly options. remember is to just have monthly options. At one time there were only calls. they added puts three years later. With the evolution of the options market. and I've said here time and time again that i think options are a better way to trade, 0DTE taking some volume from the futures contracts because options have limited risks, number one, and number two, you can trade them in any account, you don't have to have a futures account to participate. More evolution is more opportunity. Phil reminisces the days of the trading floor, call the floor and say listen, I've got a guy who wants to do something like this, can you find a way to make it happen...I recommend is to bring back some option pits.
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