[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9Dd1pyeTYzMFZRVQ==[/video_player] Index products are converging with one another and this yet another example that we are about to enter into a period of extreme volatility. Let’s take a look at historical volatility over the last 20 years. Notice that all of the “all time highs” in the last 20 years also had just entered a phase of extremely low historical volatility. The current trend of historical volatility is higher. At times we have to look beyond today or this week. Yes the market is drifting higher, but volatility will not show up on your screen until after an event! It’s our job to anticipate volatility ahead. That’s what we will do in tonight’s market analysis.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9WOUROTzVWbWdlcw==[/video_player] It’s earnings season and we kick off with the grand daddy of them all – AAPL! Many think that around earnings you should only sell premium. That is plain old stupid advice given by those that don’t know any better. Let me tell you right now that trading earnings is not a bathrobe. One size does not fit all. For some stocks it does make sense to sell premium and others it will make sense to buy premium. Let’s zoom into AAPL and take a look at the actual distribution curve vs. the theoretical distribution curve. Do the markets have it correct based on the actual historical distribution or is this a case of theory not equating to reality?

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS80a1hON1hkZjNwUQ==[/video_player] Earnings season has kicked into high gear. How do you know whether or not to sell premium on high implied volatility stocks going into the earnings announcement? The trading technology out there focuses only on theoretical probabilities. However, what if you looked the actual historical probabilities based on historical data? Would theory match reality? TheoTrade is about to break the mold in trading technology. For the first time ever this technology will be available to the public exclusively to TheoTraders! The idea that you should sell premium just because implied volatility is high is an antiquated notion. TheoTraders don’t make trading decisions based on myth. Watch TheoTrade technology in action!

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9tcFpwM3NpdHdUQQ==[/video_player] There are two types of market that we have seen over the last several years. They have been either quiet and trending or sideways and volatile. It seems to me that markets may have broken out in another quiet and trending market. With volatility we like to use a combination of calendar spreads and directional trades to take advantage of this kind of market. Let’s take a look at the kind of trades to look for over the next few weeks ahead.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9IUk1JRUFtc2I5TQ==[/video_player] It’s not a rally, it’s just a slow grind to the upside on very light volume. One interesting stat that came out today that the last 3 weeks saw the fastest collapse in the VIX in its history. There are plenty of contrarian candidates out there to choose from. Tonight let’s set up a trade in one of them…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9fVFEwbnhpNnFCTQ==[/video_player] Stocks have paused after making new highs. Is the market preparing for the next move to the upside or is it stalling at new highs? Let’s find out what we think has the greatest possibility of happening next…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS91OU5VMEJVLVpjUQ==[/video_player] Welcome to the crapshoot game of the earnings season. Many don’t know that if you look at 1000s of earnings trades and try to sell premium the return is a whopping zero! However, if you place trades before earnings on the side of the trend this gives you a slight edge. Here’s a few examples in tonight’s video…

[video_player type=”youtube” youtube_remove_logo=”Y” width=”853″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS90Vm5LM3ZZVmNKZw==[/video_player] TheoTraders must be aware of when to be a buyer or a seller of option premium. In this weekend edition let’s take a look at how you can do that. At TheoTrade we have done the hard work for you. Not only do we have the answer, but analysis behind that so you understand. Here are the types of trades that you’ll want to set up next week.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9OSGUtSFVjWnlpTQ==[/video_player] Markets have surged 170 points since Brexit to new all time highs. Here is one scan I use to find contrarian set ups. One of the stocks this scan came up with was PEP. Let’s review the trade and what to expect with earnings coming up.

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS80bmhEMHR5SFFJTQ==[/video_player] In the past few days stocks made new all time highs and today’s awkward pause comes right before earnings season starts. TheoTraders must stay aware of the macro economic picture of the global economy. Tonight I want to highlight one of our TheoDark reports that showcase a major opportunity in Japan that we will be able to trade in the weeks ahead.