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 »
Morning gains in the SPY followed by call activity in Pfizer, Cliffs Natural Resources.
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 S&P 500 SPDRs (SPY) gained 86 cents to $114.50 during the first hour of trading. The February 114 straddle is priced at $4.16, compared to the same straddle that closed on Friday at $4.45.
Pfizer (NYSE: PFE) shares climbed roughly 2%, or 43 cents, to $19.92 out of the gate following a note from Credit Suisse that said pharmaceutical names could benefit from strength in Euro to the U.S. dollar. The company is scheduled to announce earnings figures on Feb. 3 before the market opens. The February 20 calls traded more than 27,000 times versus open interest of 104,000 contracts, indicating investors could have traded to close their positions. We saw sellers in this series out of the gate, as the options traded for a bid price of 45 cents.
Cliffs Natural Resources (NYSE: CLF) shares climbed 72 cents to $50.47 during the first hour of trading, and the company could announce earnings around Feb. 25. We saw the February 55 calls cross the tape 4,000 time thanks to an investor selling these options to call for limited upside.
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.