Mark Sebastian

Mark Sebastian

Mark Sebastian is a former market maker on the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX) and is currently the Director of Risk for a private hedge fund.

He writes a popular blog, , where he posts his insight on the market multiple times a day. Mark’s writing can also be found in , which was launched in March 2010.

In Q2 2010, Mark became the Director of Education at , a new education service that specializes in trade structure, risk management and efficient use of capital.

Recent Articles

Dick’s a Solid Put Trade as Economy Revives

By Mark Sebastian

Dick’s Sporting Goods (NYSE: DKS) will see better earnings as the economy revives. Buy a bull put spread to profit in options.

Freeport Option Volatility Suggests Puts Trade

By Mark Sebastian

Traders should consider a put option spread in Freeport-McMoran (NYSE: FCX) as the stock is trending down. Options offer many trading opportunities.

An Option Formula for Ex-Dividend Risk

By Mark Sebastian

Option traders that sell a call short can check an ex-divided formula to determine if the stock will be called away. Goldman Sachs (NYSE: GS) is an example.

Hedging VIX Volatility an Advanced Strategy

By Mark Sebastian

The CBOE Volatility Index (VIX) has become volatile again following Egyptian street demonstrations. Traders are seeking ways to insure their portfolios.

American Eagle Call Options Flying Right

By Mark Sebastian

Retailer American Eagle Outfitters (NYSE: AEO) has rebounded and the March 16 Call options look attractive.

Alcoa Calls Shining This Week

By Mark Sebastian

Alcoa call options are attractive as Alcoa (NYSE: AA) prepares to announce earnings next Monday.

Petrobras Calls Could Heat Up the New Year

By Mark Sebastian

Petrobras Brasileiro SA (NYSE: PBR) call options look attractive as the oil stock benefits from a rally in the commodity.

Option Volume Up in KRE Regional Bank ETF

By Mark Sebastian

Option investors are watching the KBW Regional Banking ETF (NYSE: KRE), buying at-the-money calls as banks become takeover targets and emerge from the financial meltdown.

Review RIMM Carefully Ahead of Earnings

By Mark Sebastian

A straddle on unpredictable Research in Motion may make sense as earnings loom.

A Smarter Way to Trade Buyout Rumors

By Mark Sebastian

Avoid ringing up commissions and trading costs with a risk reversal strategy using an options spread.

How to Trade With Better Than 50/50 Odds

By Mark Sebastian

Option trades with better than even odds are rare, but they do exist.

Time to Get Long Citi? Goldman Thinks So

By Mark Sebastian

Citigroup Inc. (NYSE: C) saw an incredible surge in call volume Wednesday, and this options activity says someone is very bullish on the battered banking stock.

8 Things You Must Do Before Expiration Day

By Mark Sebastian

Expiration trading provides a lot of opportunity, but it's not as easy as you think. Get tips for managing expiring options positions.

3 Tips for Trading Options Around Earnings

By Mark Sebastian

There is no 'best' earnings trade, but there are ways to move the odds in your favor.

A Cheap Way to Protect Your Portfolio From ÃÛÌÒ´«Ã½ Crashes

By Mark Sebastian

Find out how to use inexpensive options to protect yourself and even profit when the market tanks.

Carry Out a ‘Surgical Strike’ Option Trade in BBY

By Mark Sebastian

Best Buy Co., Inc. (NYSE: BBY) is a stock that really moves after earnings. Here is the best way to trade it.

Garmin-GRMN Earnings Trade

By Mark Sebastian

Garmin (<strong>GRMN</strong>) reports earnings later this week. Here is a breakdown of the risk/reward scenario for a few trading strategies.

Chevron-CVX Earnings Trade

By Mark Sebastian

Learn how to pick good earnings plays and why bearish traders may want to consider a speculative income trade in Chevron (<strong>CVX</strong>).

Google-GOOG Earnings Trade

By Mark Sebastian

Google (<strong>GOOG</strong>) makes for an interesting earnings trade, because it typically reports the night before expiration day. Find out how to play it.

GS Recommends MCD Options, But There May be a Better Option Trade

By Mark Sebastian

Two Goldman Sachs analysts recently recommended some McDonald's (<strong>MCD</strong>) call options, but there are a few issues with their argument, and perhaps even a better trade.

Put-Call Parity – Using Debit and Credit Spreads to Take Advantage of Mispriced Options

By Mark Sebastian

The only thing you need to take advantage of mispriced options is an understanding of a simple formula and a basic options strategy.

Implied Volatility – RIMM Implied Volatility Gone Bad

By Mark Sebastian

Many traders tout the predictive value of implied volatility, but there's a good chance it will lead you astray, as it did with some unlucky Research In Motion (<strong>RIMM</strong>) traders.