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Pre-Order, Or Else!
Daily Options Report —
Hey, you can apparently pre-order my book now on Amazon if you click thru here. What does that mean? Good Question. Pre-order Price Guarantee! Order now and if the Amazon.com price decreases between your order time and the end of the day of the release date, you'll receive the lowest price. Here's how (restrictions apply) What could be a better deal? I mean you can order 87 of these pups for the price of 1 Legend seat at Yankee Stadium. OK, here's the deal, I believe it gets released in August. It's not tomorrow I know as am I going over their edits over the weekend. ...
The Owl Is Not Always As It Appears
Daily Options Report —
I have seen a couple pieces lately noting the "divergence" in the VIX this week. Like this one from Bespoke for example. Hat tip Abnormal. While one measure of volatility recently made a new short-term low, the VIX volatility index recently failed to take out its recent lows and is now trading back above 30 even when the overall market has made new short-term highs. This failure to head lower has some investors looking for a pause in the rally, as fear of a pullback seems to be creeping back into the market.As I often note, it is correct to pay most attention to the VIX when it does the unexpected. However, this is a poor interpretation from a few ...
Four Reasons Why the VIX Is Looking Bullish
Minyanville —
I've seen a couple pieces lately noting the "divergence" in the VIX this week, such as this one from Bespoke , for example. Hat tip: Abnormal. "While one measure of volatility recently made a new short-term low, the VIX volatility index recently failed to take out its recent lows and is now trading back above 30 even when the overall market has made new short-term highs. This failure to head lower has some investors looking for a pause in the rally, as fear of a pullback seems to be creeping back into the market."As I often note, you should pay the most attention to the VIX when it does the unexpected. However, this is a poor interpretation - and from a few different angles. 1. VIX is a contra ...
On a Rolls
Daily Options Report —
One of my twitter friends popped this up yesterday. trading with stops equates to being short volatility - knockout options, my $JPM stop was tagged at 35.47, reversed lower, that's showbiz. Are stops equal to short volatility? Kind of. It depends on the perspective. Day/Swing trading, which I will define as short term trading with relatively close stops and price targets, is somewhat analygous to options trading if you look at options as simple buys or sales of volatility. Say an ATM straddle. In fact the volatility of those options should serve as your guideline for setting price targets. The higher the volatility the wider you should set ...
What’s My Gamma Again?
Daily Options Report —
I try to have a mix of positions. By that I mean, don't just short put spreads or calls spreads or go long calendars or whatever in every single name. So as such, as expiration nears, I'm long near money strikes in some names, short others.
And clearly, you have to manage the positions in different ways as it's unrealistic that all your long gamma spots fly all over the place while your shorts nestle peacefully at strike.
So going in yesterday I had 2 names where I owned near money gamma (SSO and ERX) and then a 3rd that came into play thanks to the strength of the day (FAS). On the flip side, I had 2 with short strikes in play (MA and FSLR).
Long ...
It’s Here
Daily Options Report —
So 11 month's after I first "signed", and 7 month's after I finished the main writing, my book has finally appeared at my doorstep! It's some sample copies, but I believe it goes on sale within the week.Let the shamelss shilling commence!
No this isn't the cover. Nor did she make the cut anywhere, as my plan to include scratch-off VIX graphs went awry.
Pretty psyched about the book, but not the greatest trading day ever. Tweaked RIMM by buying some collars vs. stock on a ratio, then bidding for stock into further dippage.
Speaking of collars, some new academic study floating around on the efficacy of the strategy (buying OTM puts, shoring OTM calls vs. a stock long). The link I ...
We’re Number 10!
Daily Options Report —
If you were kind enough to pre-order my book, it should arrive on your doorstep any day now. AMZN actually flashed "in stock" yesterday.
OK, they said they had 5 in stock, and they sold out in minutes demonstrating the Power of Twitter Suggestion. Now it says in stock on October 2nd, but publication date of October 19th.
I also rose in the polls to 10th in Finance and Investing!
How 'bout them apples, Jim Rogers (number 13 and number 18?
What say you, George Soros (number 23 and number 37)?
Where's your moustache now, Bill Gross (OK, not actually on the list, but that other Pimco guy can talk his book via an actual book at number 1)?
Anyway, as here's ...
This Week’s Playbook
Daily Options Report —
Hats off to the Padres Broncos for that 5-0 start.
So I'm reading through my book, I noticed I have a bunch of stats on expiration week.
If you promise to still buy it, I can generalize a few things for you.
One is to lose that whole "Thursday Rule" which states the market will go the opposite direction on Expiraiton Day from which it moved the Thursday from the week before. There's a modest negative correlation, so it's a very small odds winner trade to go short on this Thursday's close.
The flip side is that Expiraiton Week tends to go trendy. So if we're up early in the week, it's not very likely you see that end later in the week (most likely it ends after ...
