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...
Sunday, October 27, 2013
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...
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.
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.
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