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 »
SPY falls after CPI report, J.P. Morgan sees selling action, put buyers in Chesapeake
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.
The December CPI report showed a month-over-month rise of 0.1% compared to estimates of a 0.2% climb, and the S&P 500 SPDRs (SPY) dropped $1.14 to $113.79 during the first hour of today’s trading sessions. The February 114 straddle is trading at $4.63, compared to the February 115 straddle that closed at $4.51.
J.P. Morgan (NYSE:JPM) announced 74 cents earnings per share this morning, which best estimates by 13 cents. The company missed on revenues, however, and the stock dropped $1.20, or 2.5%, to $43.49 during the first hour of trading. The January 45 calls crossed 11,000 times and the February 43 puts traded more than 10,000 times. We saw sellers bringing in premium post earnings report in JPM, and the January 45 straddle closed at $1.46 last night. For those investors who owned the straddle, it remains in-the-money.
Chesapeake (NYSE:CHK) shares climbed 29 cents to $27.96 during the first hour of trading, and the company is due to announce earnings on Feb. 17 after the market closes. We saw early buyers of the February 25 puts (investors paid roughly 57 cents per contract), but the stock rebounded and puts continue to cross thanks to potential buying action. The puts traded more than 5,500 out of the gate today.
Two Traders, One Strategy Steve and Jared take a look at risk management strategies on the OH platform.
Navigating OptionsHouse Get to know the OH platform and all the tools you have at your disposal.