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The S&P Witch Project” (Active Trader, December 2004) analyzed how the S&P 500 index behaved surrounding “triplewitching” expiration days — the two-day periods in March, June, September, and December when stockindex futures, stock index futures options, and equity options expire. (After single-stock futures were launched in November 2002, triple witching days were sometimes called “quadruple witching” days because these new … Read More

You can make money buying stocks and holding them for long periods, but you risk a large amount of capital when doing so. By contrast, buying calls can provide the same type of returns with less risk. The problem is that time decay works against you. A strategy designed to compensate for this drawback is buying long-term calls on exchange-traded … Read More