Continuing with a theme I discussed coming out of Labor Day Weekend, volatilities continue to remain low across major stock indices, within the majority of sectors, and by extension many key stocks. Until that changes, there’s no need to deviate from my current plan of keeping things simple. When bullish opportunities present themselves, it is pretty simple — I want to be long calls. There’s no need to overthink things here.
Not surprising, there is a stock on our radar that it is breaking out to all-time highs with options pricing in volatility near the lowest levels seen in the past year. A perfect candidate for straight naked calls. [Read more…]