Today would have been Milton Friedman's 100th birthday and, predictably, people on the internet are stumbling over themselves to give rapturous applause.
In his Nobel lecture, Friedman...
We’re re-entering our iron-condor order to close this position, as follows:
Day limit orderSell to close 1 SPY March 144 callBuy to close 1 SPY March 139 callBuy to close 1 SPY March 132 putSell to close 1 SPY March 127 putfor a net debit of $0.31 or better.
Note, again, that the 1 contract specified above represents our entire position in the 127/132/139/143 iron condor/adjusted butterfly (same number of contracts as we’re long in…
The net delta column on the Portfolio page has been updated. For a trader using our risk-adjusted position sizing method and risking $5000 per iron condor trade, the net portfolio SPY delta for February should be about -244. That exposure can be eliminated by buying 244 SPY shares; or if you are following us in trading combo positions to maximize capital efficiency:
Buy 2 SPY Feb 127 calls and sell 2 SPY Feb 127 puts (the 127 combo) for…
I was recently invited to join Quant Wizards, an exciting new service comprised of some of the top quantitatively-oriented financial bloggers around. The purpose of the service is to give traders an outlook for the following trading day based on the aggregate market calls of each of the seven participants. A consensus outlook is derived by passing those market calls through an adaptive algorithm, and the result is a simple directional indicator for each of the S&P 500, the…
Sigma Stop: OFF
Allocation Model1 (Weekly): 32.93%
Allocation Model2 (Daily): 100%
see post comments!
We’re pleased to announce that OptionsHouse recently joined the list of brokers that provide autotrading for subscribers to our new Calendar Options service. Now OptionsHouse customers who want to learn our market-neutral strategy for generating regular monthly income using calendar spreads, but are new to options or to calendar trading, can follow along with our real trades automatically. (Note, however, that autotrading is offered as an educational supplement and is not appropriate or permitted for use as…
We are closing the following position for October expiration:
Day limit order
Sell to close SPY Oct 111 put
Buy to close SPY Oct 113 put
for a net debit of $1.85 or better.
We’re closing out the put spread on this October position and we will allow the calls to expire worthless. While the market may move higher still this week, we want to offset the October losses a bit by closing this spread.
The Associated Press reports that the US Mint can’t keep up with the demand for gold coins:
The U.S. Mint is temporarily halting sales of its popular American Buffalo 24-karat gold coins because it can’t keep up with soaring demand as investors seek the safety of gold amid economic turbulence.
Mint spokesman Michael White said Friday that the sales were being suspended because demand for the coins, which were first introduced in 2006, has exceeded supply and the Mint’s…
The headline says it all, really. Some of our short-term and more sensitive volatility indicators flashed buy signals premarket today, and futures are well off their worst levels of the morning.
This is obviously not a newsletter trade – just some extra information that those of you who are more active traders may be interested to note.
In response to some member questions:
The volatility indicators we’re referencing here are proprietary tools that we’ve developed for identifying…
Historical surveys suggest that the odds are good for a bounce off this morning’s gap down. We will get long small here via some futures – though of course long stock or even small size options would work as well.
We are looking to see the ES futures and SPX cash close near 1292 today, and we’ll set our stops somewhere around the 1265 area. Note that if we don’t start to see positive price action by 10:30-11:00AM EST, we…