Category: Education

Assess a Stocks Future Potential Price Move Based on Options Pricing

Posted on April 27th, 2023

Today’s education is on how to anticipate a potential future price move for a stock or ETF based on the pricing of that security’s option pricing. Many times, people use fundamental analysis projections to assess a percentage number a stock’s price may appreciate.  The fundamental analysis is more often than not used for long-term price […]

Options Implied Volatility Around Earnings Part 2

Posted on April 21st, 2023

Yesterday’s article provided some base education on an options Implied Volatility (IV) and how it can move prior to an earnings announcement on the underlying. Today we will focus our discussion on what tends to happen to an options IV post the earnings announcement and how it may dictate you closing out that open options […]

Options Implied Volatility Around Earnings Part 1

Posted on April 20th, 2023

This article will discuss a component of an options price that can affect the overall price of the option and how knowing what happens to it when a stock is coming up on its earnings can help you set yourself up for a better chance of profit.  The component is called Options Implied Volatility. Implied […]

Stock Price Reaction Unpredictable when it Reports Earnings

Posted on April 18th, 2023

Have you seen this before? A stock you are invested in, or track reports its earnings for the latest quarter.  It reports their earnings per share (EPS) is $1.02.  The expectations were for an eps of $1.00.  They also report their revenue for the quarter came in at $1 Billion.  Their revenue expectations were 1.01 […]

Third Year in a Presidential Cycle Could Mean Higher Price for the Markets

Posted on April 17th, 2023

A Presidential Cycle is a term of 4-years.  After 4 years they can either ride off into the sunset or run for a second term. Regardless whether they run or not, we want to focus our talk today on what comes of the financial markets performance the President’s third year in office. 3rd Year of […]

Don’t get Caught Up in the Financial News Network Headlines

Posted on February 27th, 2023

How many of you watch a or multiple financial news networks? How many of you watch it with the sound off?  That may seem like a funny question or us trying to be funny, but many do as there are time there can be so many people talking all at once and it gets difficult […]

Quick Educational Point on Morning Options Reports Lists in Toms Tools

Posted on February 23rd, 2023

I use the Morning Reports lists often and I imagine many of you are as well so long as you are continuing to study options trading education with me and are using the suite of software analytics that my software is. I am going to use the same image from my last lesson I gave […]

A Brief Word on Options Deemed Having Expensive or Cheap Implied Volatility (IV)

Posted on February 21st, 2023

You all have seen many articles highlighting the Morning Reports lists in my tools (  What I want to do real quick here is offer a bit of education for you all that reference these lists so you can have some idea on what strategy one can consider depending on which options list you choose […]

Cost Averaging Options Trades

Posted on February 17th, 2023

When trading options like trading stock, there are times when the trade goes against you.  The question is when to either stop out and preserve capital or add to the same options trade resulting to what’s known as dollar cost averaging.  Here are some thoughts on that. Recent followers of my education know I highlighted […]

5 Stocks with Profit Potential for a Significantly Long Time

Posted on February 15th, 2023

Last year’s performance for the stock market was bearish and that’s an understatement really. The bear market has gone longer than the average length of a bear market, which is 9.6 months. Here are a couple of what I deem primary concerns the markets, the economy, WE faced in 2022.   We had and still […]