Put Debit Spread Strategy
Put Debit Spread Strategy Today I used a put debit spread strategy in GOOGL. As I mentioned over the weekend I was looking for GOOGL to trade up to 750 today. That is where I want to set up a put debit spread. Let's review specifically what I did if you decide the trade is…
Implied Volatility Expected Move
Implied Volatility Expected Move Every week we need to look at the implied volatility and expected move for the week. Comparing the implied volatility and expected move to the previous week will tell us if there is more risk in the market. For next week the oil production report is coming out and the FOMC…
Volatility is Your Friend
Volatility is Your Friend Volatility is your friend and it's back! Today's market saw more than a 40 point move in the SPX and 100 point move in the NDX from high to low intraday. This sets up some great trading opportunities for us. Today I was able to intraday date FB and QQQ short.…
Risk in the Stock Market
Risk in the Stock Market Do you know what your risk is in the stock market? The way the VVIX is moving is telling us that we are about to make a big move in the market or traders are hedging like crazy. There is a big demand for VIX options. There could be a…
Volatility of Volatility
Volatility of Volatility Looking at volatility of volatility is one way to look under hood of the market to determine what is actually happening. The product symbol is VVIX and what is conveys is the volatility on option prices. By looking at the VVIX we can see that fear is coming back into the market…
Massive Market Divergence
Massive Market Divergence Massive market divergence in today's market action. We saw the FANG stocks - FB, AMZN, NFLX, and GOOGL get clobbered while the rest of the market was relatively stable. Keep in mind these are the 4 stocks that led the market higher. If these stocks aren't leading the way which stocks are…
Short the SPY ETF
Short the SPY ETF You can view your short positions as being short the SPY ETF. Let's review the positions that are on and what to expect next week. There is one big news announcement that is keeping the expected move juiced up in the SPX. That is the ECB announcement as central banks around…
Profit Taking Friday?
Profit Taking Friday Will there be profit taking on Friday? Anything can happen with the unemployment report in the morning, but let's dive into where we are in these markets. In 15 trading day the S&P is up 10% and has come into an important resistance level. You would expect bulls may find this a…
SPX Expected Move
SPX Expected Move The SPX expected move is telling us exactly what the market is doing - nothing. The weekly options for the SPX is telling us that the market is waiting for the unemployment numbers that will be released Friday morning. Let's review what to expect when the market expects nothing.
Stock Market Recovery
Stock Market Recovery Stock market breakout and tonight we turn our attention to how much of can the stock market recover. Bonds broke down and the trend line. This now means real money is flowing from Bonds into stocks. However, it is difficult to make a case for chasing stocks here. There has been a…
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