The cost to purchase gold call options has fallen 15% since August 24th as Fed rate hike probabilities have swung. An options backtest shows positive expected value on these calls historically, and they may present an effective way to play this month's Fed decision for those that are anticipating a hike.

U.S. utilities (XLU) implied volatility has risen from the 24th percentile to the 70th percentile over the past few weeks in advance of an expected interest rate hike next month. Options traders are expecting a nearly 4% move in the sector after the Fed meeting on September 21st. At today's elevated pricing, an options backtesting analysis of selling straddles delta hedged shows a 70% probability of success with a 0.32 Sharpe ratio.

An options backtest of covered calls on Apple over the past two years shows that the options strategy added on average $7,600 per 1,000 shares to the investor's portfolio value ($950 every three months). We ran numerous options backtesting analyses to optimize the strategy and identify the time to expiration and strike price with the highest historical expected value and with the lowest probability of shares being called away. Log in to view the details.

An options backtest shows that the cost to purchase put spreads on biotechnology ETF XBI is near its lowest level since early 2015. Hedgers worried about further turmoil in the biotech sector would find these options attractive due to their inexpensive current pricing and positive historical returns in the backtest.

An options backtest of risk reversals (short put and long call) on Apple shows significant positive expected value at today's pricing. This specific risk reversal has a net credit at inception and equal performance on average to owning AAPL shares since 2000.

With implied volatilities across most major stock indices at their lows over the past year, mid cap stocks remain one of the last bastions where options sellers are receiving healthier premiums. A put options backtest on mid-cap ETF MDY shows 94% probability of success with implied volatility in the 21st percentile over the past six years.

Consumer Discretionary (XLY) implied volatility is at its lowest level in 7 years. Backtesting of call and call spread options at today's low pricing shows equity-like performance and positive historical returns without the large capital investment of XLY shares.

Selling weekly straddles in advance of UPS earnings has generally been an unsuccessful strategy over the past three years.

Selling straddles in advance of Exxon earnings has generally broken even over the past six years. Analysts expect 64 cents EPS.

The options market has historically predicted larger stock price moves than have been realized after Baidu's earnings releases. Selling BIDU earnings straddles would have been profitable 75.7% of the time since 2011.