Value investors are looking for under-priced stocks.  Corporations who are temporarily out of favor with investors but who show a fair market valuation that’s higher than the current share price of its stock.  The idea being that, in due time, the rest of the market will realize this inequity and the stock will move higher [...]

While option prices are driven by fundamental analysis of market prices, expiration dates, and strike prices there’s definitely an element of technical analysis in identifying potential opportunities.  Case in point is one of my favorite gauges of trader sentiment – the put/call ratio. An increase in put call ratio can indicate bearish (pessimistic) sentiment about [...]

A common measure of option trader sentiment is put call ratio which compares the number of puts to calls on a particular stock.  Traders buying calls are optimistic about the price of the stock and traders buying puts are pessimistic so the ratio of puts to calls gives an overview of general trader sentiment.  Seeking [...]

Joining other major retail brokers who are beginning to offer trading accounts and trading tools outside stocks, bonds, and mutual funds, E*Trade is debuting it’s own suite aimed squarely at options traders.  Accounts are offered for covered calls, long calls & long puts, and a variety of other more exotic contracts with trades at a [...]