With stock trading volatility at extreme highs in 2020, options markets had their biggest year yet.
ST PETERSBURG, FL, USA, January 11, 2021 /EINPresswire.com/ — 2020 was a year like no other. Between the COVID-19 pandemic and the national election, markets have been incredibly turbulent. Options exploded in popularity in 2020 as millennials and traders all over the globe were forced to work from home, drawn in through apps such as Robinhood, which offer the promise of free trading and ease of access.
“By the time I started my newsletter in July of 2020, the S&P had already risen about 1,000 points from the lows of March, but the market was still experiencing extreme volatility, which can be a trader’s best friend,” Said Tommy O’Brien, COO of Tiger Financial News Network.
Rocket Equities & Options is delivered every Monday morning, with updates throughout the week. Since the report began on July 13th, there have been 35 options trading ideas and 5 equity trades discussed, which combined for a 1,270.39% return in 2020.
O’Brien had two of his biggest trades in Disney, with both options and the equity. In the equity market, he discussed buying Disney (DIS) on July 14th when the stock was trading at $118.63, and he still holds that position at the current price of $178.69 for a $60.06 or 50.63% profit. In the option market, he traded a call spread ahead of their August 4th earnings for a 338% profit in just a couple days. That same month, he placed a similar options trade in SalesForce.com on August 25th ahead of their earnings for a 357% profit in less than a week.
“The market just wasn’t pricing in the moves that some of these companies were capable of going into their earnings announcements. Because of the shutdowns and restrictions, no one really had any idea of what to expect. Many companies had pulled their guidance in the face of record uncertainty. The market was just not giving Disney enough credit for the opportunity they had with Disney+ and COVID-19 restrictions,” said O’Brien. “In the options market, sometimes you’re making trades that you realize you will lose a certain percentage of the time, but when the market goes the way you expect it to you can often earn many times your defined risk with the trade.”
Options, a favorite market for speculators, had a historic year in 2020. The 5 largest options trading days by contracts traded all occurred in 2020. Of the 40 trades discussed in Rocket Equities & Options in 2020, O’Brien had 31 winners, 2 break-even, and 7 losing trades.
“One of the keys to being successful in this industry is managing your risk, cutting your losses, and moving on to the next trade,” said O’Brien. “We come into 2021 with the VIX (an index traders use to gauge how much volatility is being priced into the market) still sitting above 21, which is historically high especially for a market making all-time highs on almost a daily basis, while many Americans face extreme hardship during these exceptional times. Many of the work-from-home trends that have shaped our lives last year will persist well into 2021 and beyond, and the options trading hype is here to stay as well I expect.”
Tommy O’Brien also hosts a live program every trading day, “The Morning Market Kickoff” at 8:30 am EST on TigerTV, which TFNN streams for free at their website. TigerTV also streams live on TFNN’s YouTube channel and you can subscribe to their channel for free. Tiger Financial News Network (TFNN) is a financial media outlet that delivers concise and valuable insights to millions of investors and active traders. TFNN streams live shows every market day with a variety of hosts that take calls from viewers and listeners live on-air from 8:30 am – 4:00 pm EST, all for free. TFNN just surpassed 1 million views for 2020, representing a stunning 65% growth rate versus all of 2019 numbers.
For more information on Rocket Equities & Options or TFNN, contact Tommy O’Brien at 877-518-9190 or email Tommy@tfnn.com