Sunday, December 15, 2013

Hedging for the week

Using SPY Puts at the money tomorrow a.m. for possible Wednesday hedge against the Fed tapering...

Happy Trading...

Monday, November 11, 2013

Leap Frog

In LF Jan 2015 7.50 Strike Calls @ 7.50.

Happy Trading...

Facebook LEAP

FB Jan 15 2016 LEAPS are open for trading!  If you are a bull pick 'em up before they get volatile.

Happy Trading...

Sunday, October 27, 2013

^VIX

So what to do with trading volatility???

TVIX is consistently hitting 52-week lows, although the chaos of the Govt' Shutdown proved highly lucrative.

VXX is doing the same and will be in a reverse split again, in Nov.

To taper the volatility of the ^VIX derivatives play options on the VXX, calls/puts depending what side you are playing.

SPXU and a host of other ETF's can provide some profits but don't stay in these long, like a day or two unless there is some more U.S. government, budget and debt games, then a week or so has been working, but close out before news is expected.

Take advantage of some quick turns when quality names are brought down with the overall market by picking some at/in-the-money calls on the pullback.

Happy Trading...

Dry Bulk Index

Those of you who are still interested in dry bulk shipping, this chart over at StockTwits shows you what the DBI has been doing...

http://stocktwits.com/message/16369733

If the bull market stays intact TNK, FRO, GNK have some opportunity.

Yes, I still hold TNK--dividend has dropped but still is paying a dividend...

Happy Trading...

Thursday, October 24, 2013

Twitter IPO

Twitter is looking to sell as many as 80.5 million shares priced at $17 to $20 each under its highly-anticipated initial public offering.
Twitter is expected to price on Nov 6 and begin trading on Nov 7.
Giving Twitter $1.6 billion. The plana is to sell 70 million shares and an additional 10.5 million if the demand is there on IPO day.
It will list on the NYSE and not the NASDAQ...
Happy Trading...

Tuesday, October 22, 2013

CBOE Short Term Volatility Index

NEW CBOE SHORT-TERM VOLATILTY INDEX (VXST)
On October 1, CBOE introduced its latest innovation in the volatility space – the CBOE Short-Term Volatility IndexSM (VXSTSM). Like the CBOE Volatility Index® (VIX®), VXST reflects investors' consensus view of expected stock market volatility. Whereas VIX has a 30-day horizon and is calculated using SPX monthly options, VXST looks out just 9 days and includes S&P 500 options that expire in one week in its calculation. With this 9-day window, VXST is particularly responsive to changes in shorter-term volatility. During the period from January 2011 through August 2013, the historical volatilities of the indexes were 180 for VXST, and 116 for the VIX. 

For more information, including price history and charts, visit www.cboe.com/VXST.

VOLUME GROWTH IN SPX WEEKLYSSM Average daily volume in SPX Weeklys options has grown from 13,765 contracts in September 2010 to 179,437 contracts in September 2013 (an increase of 1204%). The shorter-time horizon of Weeklys options allows investors to more precisely target buying, selling or spreading strategies. 

For more information and a volume chart, visit www.cboe.com/SPXW

NEW PM-SETTLED MINI-SPX OPTIONS (XSPSM) TO BE LAUNCHED NOVEMBER 5 
On Tuesday, November 5, 2013, CBOE will introduce new, PM-settled Mini-SPX Index Options (XSP) based on 1/10th the value of the S&P 500 Index® (SPX). The new XSP options will replace CBOE's AM-settled Mini-SPX options. The transition from AM to PM settlement in mini-SPX responds to customer demand for cash-settled options with PM-settlement among investors who currently trade physically-settled ETF options. Recently, the underlying values for SPX options and CBOE’s Mini-SPX (XSP) options were around 1700 and 170 respectively. 

For more information on XSP options, including a link to the recent RegulatoryCircular, visitwww.cboe.com/XSP

Wednesday, August 28, 2013

Where are we with the TVIX?

as posted a long while ago was loading up on TVIX when it was 2.60.  I usually layer in to volatile trades which worked well here.  Was buying all the way down into the 1.50 range for a good cost basis.  Syria is assisting in fear right now so this turned out to be a good trade. still more neg news in the future, debt ceiling, sequestration impacts, slow down in housing, jobs number not great, tapering... etc.  The model didn't work as planned this time but is still working out, albeit slowly.  If you are in stay the course for north 2$ range.


happy trading!

Saturday, July 6, 2013

VIX below 15

OK, so not a lot of publishing for a long time.  Sorry, been busy... trading volatility.

The rule has been long the VIX under 15 and short the VIX over 17, not hard and fast rules, but have been safe bets.

TVIX in the 2.60 range, starting to load-up for an all-in position.  It has been a wild ride lately.

News this week shot stocks up, Europe planning on more bail out aid, how can that possibly be good.  Sequestration in the U.S. will start showing it's impacts, especially since the govt's fiscal year starts Oct 1 and the cuts mandated will eat into most federal programs and prevent federal contract growth, meaning less jobs.

Buy TVIX, VXX (VXX options) and hold them!

Happy trading...

Sunday, January 6, 2013

VIX At It's Lowest Ever, Almost

The ^VIX is now below 14, an unheard of level over the past 20+ years.  Undertones are showing signs of a slow-down in housing, continues worry of getting control of debt, coming to an agreement on cuts due in March and QE detrimental effects.  If earnings   come out and show a slow-down expect the ^VIX to head back north.

I am currently long the TVIX.

Happy Trading...

Thursday, January 3, 2013

SODA & HLF

Soda Bull Call Spread (buy Jun 40 sell Jun 50) working very well!

HLF weekly's returning over 1100%.  So, yes we missed the FSLR calls but can't say I haven't mentioned watching the solar sector recently.

Data from options monster below!


Options, it's where the money's at...

Happy Trading...