Stocks vs. Options: Which generates better returns?
Plug in your stock idea to find options trades offering a potentially better ROI.
NEW TO OPTIONS?
Visit our New to Options page to learn more.
Find out more »
you're watching:
OptionsNews
An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.
An investor boosted normal options volume in Focus Media, most likely expecting a later-term drop in the stock.
On today’s Options News, Carrie Long and the www.ONN.tv team cover last month’s GDP, which came in at +2.8% compared to consensus estimates of +3.2%. The CBOE SPX Volatility Index (VIX) closed down more than one point, or 4.6%, to 21.2 on Monday, suggesting investors could be expecting implied volatility to continue to calm going into the holidays. Be sure to stay tuned to ONN.tv for updates on economic data throughout the week.
Focus Media Puts in the Spotlight
Senior Derivatives Specialist Jared Levy provides insight on heavy volume in Focus Media (FMCN) options that crossed the tape on Monday. The April 5 puts traded 28,000 times yesterday, and most of the action was on the buy-side. Buyers boosted the price of these puts up 13 cents on the day. Normal daily options volume in FMCN is usually roughly 6,000 contracts, but more than 30,000 contracts hit the tape across all strikes. The market expects to see earnings figures from FMCN on Nov. 30 after the market closes. ONN.tv will keep you up to date on the earnings news, which could have catalyzed this investor hedging a long position in FMCN stock by buying later-dated puts.
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
Enter a stock ticker
What price would the stock have to rise to or drop to for you to admit you’re wrong and put off your trade?
Enter price you think the stock will move to. You can be bullish or bearish.
How many days do you think it will take the stock to hit your target price?
