Follow the Pain on Friday

With unemployment numbers on Friday, ahead of Labor Day, we need to ask ourselves what would generate the greatest pain for the most investors? Because the market always targets that which causes the greatest pain point. Markets move because they have to. Let's look at where the pain points may be...

Bonds Rally, Time to Short BAC

While the stock market continues to be stuck in a tight range the bonds exploded higher today. This should be hurting the financial sector yet earlier in the Bank of America (BAC) was up more than 1%. Here's the short BAC trade idea we took today...

Markets Display Serious Risk

Friday saw the highest volume day since Brexit. High volume days happen during volatility spikes. Next week we look towards the unemployment numbers. This will be last unemployment report until the Fed makes their September rate decision. Let's take a look at a few charts that are showcasing risk in the market...

When the Vol Drops, Get Small

The markets look to Janet Yellen's Jackson Hole speech tomorrow. This non-event has turned into event since Ben Bernanke's 2010 speech where he announced quantitative easing. Unless there is some major change in monetary policy from Yellen tomorrow I would expect a continuation of low volatility. Here's what I like to do in a low…

I Think It Moved

First real movement in weeks today. Janet Yellen is speaking at Jackson Hole on Friday and it seems many of the major sectors are preparing for that speech. Take a look at the financials with implied volatility higher than the indexes. Also, let's burst the myth that all options decay over time. Implied volatility on…

Record Low Historical Vol and What to Expect from Here

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...

Signs of Instability in an Otherwise Stable Market

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...

Pairs Trading Setup

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…

Finding Opportunity in a Boring Market

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...

$100 Billion Pile of Risk

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.