Mike Khouw gives a low-risk options strategy to play the next few weeks.
In this article
There's a popular expression on Wall Street: KISS, which stands for, Keep It Simple, Stupid. Amid a torrent of complicated cross currents, it might present the best approach to trading this week's news.
More catalysts mean more potential for big moves, and if options are cheap they may present the better way to make a directional bet. At the moment, SPDR S&P 500 ETF Trust (SPY)
call options look like a better way to be long in this market.
Here's why:
One of the biggest options trades in the entire market Thursday seems to suggest small caps might lead the next move up or down.
Jeff Kilburg breaks down this SPY options trade.
Long 1 expiring SPY SPY (Aug. 7) $757 call and short 1 SPY (Aug. 7) $777 call: The position will be held until new lows outnumber…
The stock market has been rising but concerns are building. This SPY trade is for those betting on a correction or hedging long…
Jeff Kilburg of KKM Financial breaks down this risk reversal options trade.
The technique capitalizes on exponential moving averages (EMA). One possible trade might involve Rocket Lab December 55 puts,…
