keegan

Dan Keegan

Dan Keegan, founder of OptionsAuthority.com is a veteran trader and educator. Dan has over 35 years experience trading stock options, etf options and options on futures. Dan started on the Cboe in 1978 with A.G. Becker as a runner, phone clerk and floor broker. In 1984, with the backing of legendary adventurer Steve Fossett, started a long career as a market-maker on the Cboe. Dan has also been a local on the CBOT, trading t-bond futures and options on soybean oil futures. Dan’s mentoring specializes in one-on-one, online sessions with fledgling options traders.

  • Education | Sep 3, 2015, 5:30 PM

    CVX Time Value Spread Strategy

    CVX Time Value Spread Strategy

    The price of crude oil has not seen such a precipitous drop in price since 2008 when the overall economy cratered. On July 11th, 2008 crude closed at $144.96. On December 19th, 2008 crude closed at $33.17. Today the economy is not imploding. The drop in price is attributed more to an excess of supply instead of a weakened demand. The spot price of crude is currently trading below $42, less than half of its $96 price twelve months ago. Some analysts are calling for a price below $30 a barrel. It’s[...]

  • Technical Analysis & Charts | Aug 12, 2015, 3:04 PM

    Strategy: Skip Strike Butterfly Spread

    Strategy: Skip Strike Butterfly Spread

    Let’s look at SPX, IBM and FB to determine which one is the best candidate for a skip strike butterfly. SPX is trading at 2083.56, IBM at 156.32and FB at 95.12. A normal long call butterfly combines a 90-95 bull vertical call spread with a 100-95 bear vertical call spread. Each spread has an equal amount of contracts. The strike price differential is the same for both vertical spreads. A skip strike butterfly combines a 90-95 bull vertical call spread with a 105-95 bear vertical call spread.[...]

  • Market News | Strategy | Jul 29, 2015, 12:23 PM

    Facebook Earnings Today - Possible Options Strategy

    Facebook Earnings Today - Possible Options Strategy

    When a trader is making a trade based upon an upcoming earnings report the first thing that they will look at is the at the money (ATM) straddle in the expiration cycle that is closest to expiration. The earnings report for Facebook (FB) is being released this afternoon on July 29th at 4:00 pm ET, immediately after the close. There are weekly options that expire two days later on July 31st. With FB trading at 95.50 let’s take a look at the FB Jul 31st 95.5 calls and puts. The market for the[...]

  • Market News | Education | Jul 21, 2015, 2:09 PM

    VIX Near the Bottom?

    VIX Near the Bottom?

    The VIX has a highly negative correlation to the SPX. The VIX is priced upon the time value that is embedded in the premium of SPX options. When stocks fall they usually move much more rapidly to the downside than they move to the upside. As the stocks fall investors rush  to scoop up puts that provide downside protection or grabbing calls should there be a correction. Insurance for a beachside cottage is much more expensive when a hurricane hits ten miles offshore than when there hasn’t[...]

  • Strategy | Jul 9, 2015, 12:07 PM

    Bullish SPX Trading Strategies

    Bullish SPX Trading Strategies

    SPX was trading at 2068.76 on July 6th. There were 47 days until the August 21st expiration. You believe that there will be a 3% upward move in the S&P between now and then. That would mean a move up to 2130. There are a number of different bullish strategies that would benefit from a bullish move. One trade could be the purchase of 10 SPX August 2100 calls at 23.20. The upside breakeven point is 2123.20. The maximum possible profit is unlimited. The maximum possible loss is $23,200[...]

  • Education | Strategy | May 27, 2015, 5:00 PM

    Debit Spreads and Credit Spreads - Similar.

    Debit Spreads and Credit Spreads - Similar.

    (Editors Note. We would like to welcome Dan Keegan as a contributor to the CBOE.  Dan is a well known and experienced trader.  Dan started as a runner at the CBOE in 1978, moving up to act as a Floor Broker for 5 years and then a Market Maker for 17 years.  He does mentoring for investors and sends out a weekly newsletter to subscribers.  His web-site is optionauthority.com. Welcome Dan!) Selling credit spreads is a very popular starting point for many retail options traders.[...]