Historical Volatility vs. Implied Volatility

TheoTraders look for disparages between historical volatility and implied volatility to determine what kind of an edge the market is giving us. TheoTraders love nothing better than to sell premium. However, that's not what the market is giving us right now. The SPX implied volatility is telling us that it is more advantageous to be…

This is a Hallmark of Volatility

TheoTraders, today's move was a hallmark sign of volatility. The question is - when do you get short again? And that's why we get these explosive moves to the upside. Traders try to short these up moves all the way up. Remember, it's all about duration over direction. Here's how to handle the volatility...

Pop and Drop Market?

Should I stay or should I go now? If I go there will be trouble An' if I stay it will be double So come on and let me know The Clash lyrics have never been more fitting as the UK decides whether or not they are staying in the EU. Results are tonight. The…

Fading the Market

TheoTraders know not to jump on the bandwagon. The ones that go against the grain are the ones who put the odds in their favor. Tonight let's look at the S&P expected range going into the Brexit vote and what levels we will want to fade.

Selling Across the Board?

TheoTraders look for risk parameters on down days. In this weekend update let's look closer at the broad based sell off, bonds, and VVIX. What does this all mean for the week ahead?

Trades that put the odds in your favor

Trades that put the odds in your favor "May the odds be ever in your favor" Hunger Games Each week TheoTraders look for trades with an edge. TheoTraders want to find trades that put the odds in your favor. In this weekend edition find out the types of trades that you want to take in…

Expected Move thinkorswim

Expected Move thinkorswim The expected move in thinkorswim is showing us the SPX is not expected to move much this week. The market is closed on Friday, March Madness has started, and volatility is as low as it gets right now. We can look across the board even with AAPL and there big news announcement…

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.