[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9fVFl6R3ZNaE9PYw==[/video_player] With historical volatility sitting at all time lows what are the types of trades that have the potential to work in the coming months? Let’s look at a few trade ideas…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9pX3NhYzJEeFNmZw==[/video_player] TheoTraders have seen this movie before. Just when the markets look to be the most stable is exactly when the risk is at an all time high. Tonight let’s take a look at where the risk is concentrating around. The answer may surprise you…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9yRjl4X0dtdTRORQ==[/video_player] What are some trade ideas in a docile market? Selling premium is out as there just isn’t much premium to sell out there. There are always trade opportunities and luckily TheoTraders know exactly where to look. In this weekend edition let’s look at a pairs trade. First a brief crash course on what pairs trading is and then a pairs trading set up that you can take with stock, options, or Futures…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]IGh0dHBzOi8veW91dHUuYmUvbFVHem9UY1Rtblk=[/video_player] Where to find opportunity in during the dog days of summer in the markets? Let’s first do a sector review and see where the sectors are and see which sector(s) are showing opportunity. From there we can look at individual stocks for trading opportunities. In tonight video we find a few potential trade set ups…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS84TF9tOWdPN2g3Yw==[/video_player] For the last 30 days the markets have been in a historically tight range. Whether the market breaks out to the upside or the downside TheoTraders need to be comfortable with the risk they have on.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9nWWQ5RWVoeXd0UQ==[/video_player] TheoTraders know how to identify situations where stocks are at an exhaustion and volatility is going to increase. What we like to do is go long calendar spreads in these situations. If you’re new to spreads and calendars check out the Options 201 class: Vertical and Calendar Spread Essentials. You can get this 5 part class here.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9zYlZvb3FEUlBtYw==[/video_player] Jeff Bierman joins TheoTrade today. Jeff brings his extensive background in fundamental and technical analysis to TheoTrade. He spent 8 years at thinkorswim and then TD Ameritrade. With Jeff’s help TheoTraders are setting up a bearish put spread in GOOGL. TheoTraders are now able to combine probabilities and technicals to create high probability trade ideas like this one…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9zZk5kR1d5VVdLdw==[/video_player] With IV at record lows TheoTraders should not sell premium. All it takes is one volatile week to kill your account. With the record lows in volatility there is only one way volatility can go and that’s up. Here’s how we plan to get long volatility…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9QaWYzYUlZVkFUOA==[/video_player] After seven years of a relentless bull market, and now with super-low implied volatility, traders are getting restless and looking for some two-way tape. When corrective price action does return, it will be accompanied by a change in the “character” of the intraday price action, which can tip us off that cracks are appearing in the foundation of this bull juggernaut. Let’s keep trading in the direction of the trend to keep trades simple, while keeping an eye out for those small changes signifying that things are about to get a lot more fun for those of us that sell options.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9yenA3Z3docXpzMA==[/video_player] The sector to watch right now is financials which are pricing in more risk in the next 2 days than 9 days from now. What does that mean? It could that financials are giving off the first signs of volatility coming back into the market place. The other place to look is at bonds. What we see is the implied volatility in the bonds higher than the SPX. For those of you who want a fun homework assignment you can do some think back and try to find when the last time that happened. Where do we go from here? I know it doesn’t seem like it, but this might be the most opportunistic time in the market. The calm before the storm.