Calls on Dropbox are currently trading at their most expensive levels since the cloud storage company's IPO and present an attractive opportunity for long holders of the stock. 8% out of the money short dated calls are trading for 4% of DBX's price, allowing sellers to generate significant income while retaining their position in the stock until it rises more than 8%. Backtesting results show this trade as profitable 88% of the time since the stock's IPO with a high Sharpe ratio.

The market sell off has hit technology stocks particularly hard this month, and while implied volatility has risen considerably across the board, it is notable that the prices for new call options on many flagship tech names have surged much more than in other recent sell offs. This market dynamic presents an unusual opportunity for covered call writing. Netflix is a key example, and our backtesting analysis shows that today's pricing is unusually attractive. More details inside.

There was a large buyer of $210 strike Apple calls prior to the earnings release when Apple was at $190, and traders are continuing to pile into these options today even after they've increased 4x in value. A backtest of this trade shows significant positive historical expected value. Options traders are positioning heavily for more upside in Apple over the next few months.

It seems unlikely that Facebook's new dating feature will dent Match Group's empire in only a few months. This is why we think short-term put writing on Match (MTCH) is an unusual bright spot in today's market. Selling 10% out of the money puts will collect 6% of the underlying price with a 94% backtested historical success probability. The downside risk of purchasing shares at a cost basis of 16% below the current market price is also an attractive prospect but is only a 6% historical chance.

Call options on the XLF Financials ETF are seeing higher volume than usual as traders are anticipating higher interest rates to increase equity values in bank stocks. These call options are currently trading near their median value over the past several years, making them a comparably inexpensive way to play the knock on effects of higher interest rates on equities.

VIX call spreads are currently an inexpensive way to hedge equity declines for those expecting elevated price volatility to continue. While backtesting shows that these call spreads do not make money the majority of the time, they have historically returned 20x the premium paid in times of market stress.

Risk reversals on the Dow Jones ETF DIA are currently offering significant upside leverage with downside risk that is virtually the same as owning stock outright. Options prices are currently exhibiting such high skew that Q1 2018 call options are 70% cheaper than similar put options. A backtest of this options strategy shows an 82% probability of profit with significant returns if U.S. equities continue to rise.

Since the beginning of July, gold has rallied 5% from $1200/oz to $1264/oz while its implied volatility continues to drop to historic lows. Straddles on gold imply a 4% move in the precious metal over the next three months, a 1st percentile occurrence over the past nine years. Those looking for market hedges can take advantage of the negative correlation between gold and equities with cheap gold call options. Options backtesting shows this trade has a positive average return, a very rare occurrence for a hedging strategy.

Implied volatility on the S&P 500 is at its lowest level since 2007, and three-month straddles break even after only a 4% move in either direction as a result. Backtesting shows that the S&P 500 exceeds this move 60% of the time since 2000.

Steep call skew in the MDY U.S. equity mid-cap ETF has created call spread opportunities which are unusually inexpensive to purchase. Options backtesting and risk analysis shows historical positive returns with attractive probabilities of success with limited downside exposure compared to owning shares outright.