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The following are highlighted options insights and ideas from
Call Buyers Target January Despite Earnings Miss
are unusually active today
Oct. 21, despite the chipmaker falling to a five-year low on the back of an earnings miss and forecasted slump in sales of analog chips. January calls at the 20
have changed hands more than 20,000 times today, nearly four times the open interest at this strike. This suggests new positions are being entered as traders avail themselves of a 52% discount in the value of calls due to the sluggish share price action.
Read the full version of
Dykstra: Owning October
Oct. 17, I
Lenny Dykstra won twice, once with
and the other with
. I bought Deere March $30
(DECF). After only two days, I was ringing the register to the tune of $2,100. My win was more than $1,000 because the stock price fell rather quickly after my pick and I added 10 more contracts on Thursday, bringing my average cost down to $11.50. On Friday, the option shot up well past my goal of $12.50 and brought me home a winner.
With Halliburton, I took home the victory after only a few hours.
Read the full version of
Jud Pyle (Mad About Options, ONN.tv):
CBOE Market Volatility Index
(VIX), commonly regarded as the "fear index," made major news Monday. The VIX lost nearly 25% of its closing value from Friday, dropping to 53.29!
Just last Thursday -- three trading days ago -- VIX 100 calls were changing hands at $1.50 per contract, with the VIX trading in the high 70s. In Monday's session, the October 45 and 50
were bustling with activity -- more than 35,000 contracts traded of the two combined.
Evidently, plenty of option traders think this volatility index has further to fall before Wednesday morning's settlement of these front-month options.
Mad About Options: Garmin Limited (Video, Oct. 21)
Jud Pyle and Matt Buckley review Jim Cramer's recent bearish comments about
and offer an appropriate options strategy. Pyle and Buckley also offer options ideas for
To watch the video, click the player below:
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Plus, don't miss these other recent options videos on
(Oct. 20) and
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This article was written by a staff member of TheStreet.com.