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...
Monday, August 18, 2008
We are opening the following position for September expiration: Day limit order Buy to open SPY September 122 put Sell to open SPY September 124 put Sell to open SPY September 138 call Buy to open SPY September 140 call for a net credit of $0.55 or better. Analysis: This third September trade balances out our aggregate risk profile even further – it has a reasonable bullish bias but with a good range and plenty…
Sunday, August 17, 2008
As we mentioned in the August Monthly Review, we don’t expect any dramatic selling this week, and may even see another leg higher. But this rally is starting to look a bit tired and overextended, especially in tech and smallcaps. SQWI for 8/17/08: -4 The SQWI was successful for the past two weeks in a row, but we’re tempted to disagree with the bearish reading this week – we suspect that the indicator is reflecting a bearish shift…
Thursday, August 14, 2008
Our options scanner picked up some big activity today in Sept 30 and 35 WPI calls. There’s no corresponding activity in the puts. The Sept 35c are about $0.60. Rumors have it that Watson Pharmaceuticals may be a takeover target, possibly some Icahn involvement. As implied by the subject line, this is a purely speculative and high-risk trade. We’re grabbing a couple contracts purely as a gamble, and by no means do we suggest that anyone else do the same;…
Monday, August 11, 2008
We are opening the following position for September expiration: Day limit order Buy to open IWM September 67 put Sell to open IWM September 69 put Sell to open IWM September 80 call Buy to open IWM September 82 call for a net credit of $0.47 or better. Analysis: We said in the weekend review that we’d like to see IWM continue up into short-term overbought territory so that we could open another September trade…
Monday, August 11, 2008
We are closing the following position for August expiration: Day limit order Buy to close SPY August 135 call for a net debit of $0.11 or better. We will allow the 117/119 put spread to expire worthless to reduce commissions and exit costs. The 138 calls are currently at zero bid, so we cannot sell them, anyway. NOTE: If your positions are over-allocated and leaving this put spread open would adversely affect your margin requirements, you can buy…
Sunday, August 10, 2008
Not much to say in terms of market commentary this weekend. On the short term, trading side of things, this week seems to be crucial for staying above the rising trendline that started on July 15 – a breakdown below that line would obviously make the bull case pretty hard to make. In terms of a medium term outlook, check out our upcoming weekend reading post for some good links regarding the next leg of this bear market. SQWI for…
Thursday, August 7, 2008
We are opening the following position for September expiration: Day limit order Buy to open IWM September 64 put Sell to open IWM September 66 put Sell to open IWM September 76 call Buy to open IWM September 78 call for a net credit of $0.67 or better. Analysis: In lieu of the unsightly textual data dump we typically post here, we thought that the same data might fit nicely in a chart format. Again, this…
Thursday, August 7, 2008
We are closing the following position for August expiration: Day limit order Buy to close SPY August 130 call Sell to close SPY August 132 call for a net debit of $0.48 or better. We will allow the 111/113 put spread to expire worthless to reduce commissions and exit costs. NOTE: If your positions are over-allocated and leaving this put spread open would adversely affect your margin requirements, you can buy back the short 113 puts for…
Sunday, August 3, 2008
This past week was notable for the intensity of the day-to-day movement, but it was more notable for the lack of follow-through on the daily chart. On the positive side, the banks and other financials had a good week, and oil has obviously come down a fair amount. But as we said earlier, it isn’t remarkable to see some bullish action when all the stars are perfectly aligned and the Fed and SEC are pumping support in as fast as…
Tuesday, July 29, 2008
UPDATE3: For anyone who wasn’t able to exit the IWM yesterday, the market is selling off nicely this afternoon, and you should be able to exit the trade here for about $0.66 – $0.68. UPDATE: The market rocketed up this morning before we could get filled at this price. We didn’t chase it on the initial run up, but now the indexes have been chopping sideways for awhile, and we’re moving our exit price up to $0.64. Internals are still…
Jared Woodard is a registered commodity trading advisor who specializes in trading volatility as an asset class. With over a decade of experience trading options, futures ... Read More
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Tuesday, July 31, 2012
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