One of the fears about trading options is being hit by an event and the stock moving against you. A 5 contract trade opened at 2.00 can be vaporized in a day on some bad news. $1,000 nearly wiped out. Not easy to recover from that, either. I’ve been there many times. It [...]
There is a good feeling in the air as it relates to markets, and it’s not just the indices. Sure, we have most markets at/near all time highs, but here we are about to start a big earnings season. Just what did these companies accomplish in the first quarter and more importantly what is their [...]
We have just finished the first big week of earnings releases and on a shortened week, yet the market is still standing tall. The SPX 500 (see chart below) just finished the week above 1500, a mark it had not closed above since 2007, a significant milestone. The Dow Industrials is within a earshot of [...]
One thing I love about the beginning of the year is another round of earnings season, the time where companies show what ‘they got’ and we see big price jumps up and down (generally speaking). As an option trader this presents tremendous opportunities for gains whether playing in front of earnings or afterward. I [...]
Today, Bob talked about the VIX extensively and the large move up recently, and mentioned about the implied index correlation, and how it rose smartly Tuesday. The market is in a tough spot for the bulls but it’s not over yet. Earnings are at hand and Bob mentioned a few ideas.