Alex Mendoza

Alex Mendoza

Alex Mendoza is a former CBOE market maker trained by Susquehanna International Group. He has authored hundreds of articles, created dozens of live and online courses, and has also taught seminars around the world. He is the founder of options education site www.OptionABC.com

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Mini Options are Coming: What Does It All Mean?

The Securities and Exchange Commission (SEC) has approved Mini Options for trading on US Exchanges. Mini Options will be listed on some of the more liquid higher-priced optionable stocks and will have all the risks and characteristics of standard options. The key difference is that while standard options typically have a multiplier of 100, Mini […]

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Are You Ready for the Apple Dividend?

As you probably know by now, Apple (AAPL) goes ex-dividend on Thursday, February 7. This means that the stock price will exhibit a $2.65 adjustment to your account for the fact that the company is now worth $2.65 per share less than it used to be worth prior to showering its stockholders with $2.65 per […]

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What the Relocation of SPXPM Means for You

On February 19th, P.M.-settled SPX options (SPXPM) will move from C2 to CBOE. Futhermore, current SPX Weeklys will move from symbol SPX to symbol SPXPM. In short, this means that all P.M.-settled S&P 500 Index options will now trade on CBOE and under the symbol SPXPM (EDITORS NOTE: See Below). This move creates a plethora […]

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Understanding Special Dividends

As traders across the world have begun to accept the reality that the stock market does not rise by an average of 10% per year, they have begun to look for different ways to invest their money. One of these ways involves buying stocks that pay dividends. As the dreams of a 10% annual gift […]

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The Best Way to Play Dividends? Leave Them Alone!

At some point, early in our trading career, we have all had the thought… let’s try to “capture” a dividend. And why not? It seems as if they’re just sitting there, ripe for the picking. But any knowledgeable option trader knows that attempts to take advantage of this mirage are futile. So while we’re not […]

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The End of an Era – Say Goodbye to All-Or-None Orders

A few days ago, the CBOE announced that it would no longer accept orders stamped with the “all-or-none” label beginning in September (please refer to CBOE Regulatory Circular # RG12-097, dated: July 16, 2012). All-Or-None orders are often refered to as AON orders.   When I first saw the news, I thought I was imagining […]

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What Do the Option Markets Think of Groupon?

Last Friday, Chicago-based Groupon (GRPN) announced that it had underestimated the percentage of returns on its higher-valued deals. As such, the company offered a bleaker forecast for its first-quarter numbers and lowered its fourth-quarter numbers from last year. Groupon admitted its mistakes and assured investors that the issue has been resolved, that this will be […]

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Ranting and Raining on the Apple Dividend Parade

Earlier this week, Apple (AAPL) declared its first dividend since 1995. The markets welcomed the news with open arms, not to mention with a 15-plus point rally, to send the stock soaring to its first close over $600 per share. It seems as if all is good with the Cupertino-based behemoth. Now, I must confess, […]