Category Archives: Strategy

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Weekly Weekly’s 7.17.14

Tomorrow is a traditional options expiration. Next week, it’s just the Weeklys, which is what I am focused on today. Popular stocks with weekly options turn in their earnings next week. Next week starts strong with earnings from Netflix ($444). Right after the bell this morning, 10,000 contracts traded with a few call buyers at [...]

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Weekly Weekly’s 7.3.14

This report has it all. Trades in Alcoa ahead of earnings and quick trades before the market closes in today’s abbreviated session.   Let’s cover weekly options that expire today and next Friday, July 11th. Alcoa leads off the earnings parade for the second quarter next Tuesday. The stock is trading $14 today.   In the money [...]

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Weekly Weekly’s 6.27.14

Nike options are kicking up into earnings. let’s look at weekly options that expire this Friday, June 27th and next Thursday, July 3rd. The market will be closed for 4th of July, next Friday. Nike stock has had its own version of fireworks. As the World Cup rolls on, the stock has been trending higher. Nike [...]

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AAPL Trade Idea

Oh, how I miss the expensive Apple (AAPL, $91.90, up $0.62) stock price before the split, let me name the ways: More premium for credit spreads, less commissions because I didn’t have to do as many contracts with a $500 stock price. Any positive things about the split? Yes, liquidity, which was great before the [...]

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Next Week in Weeklys – 6/13/2014

The list of Weeklys expanded by a handful of stocks this past week. This occurred despite next Friday being standard option expiration date. This past week we had earnings from only Luluemon Athletica (LULU) which resulted in almost a 16% price drop in the stock. Next week there are a few more companies reporting earnings [...]

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2016 Index & ETF LEAPS To Be Added

On June 25, 2014, trading will begin for June 2016 LEAPS in the following Index and exchange traded fund (ETF) option products: DJX (Dow Jones Industrial Average) MNX (Mini-NASDAQ 100 Index) NDX (NASDAQ 100 Index) OEF (iShares on the S&P 100 Index Fund) OEX (S&P 100 Index with American Exercise) RUT (Russell 2000 Index) SPX [...]

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Weekly Weeklys Report 5.1.14

Weekly Weeklys I’m headlining with LinkedIn ahead of earnings in this week’s report.  We’re covering Weeklys options that expire this Friday and next Friday, May 9th. Traders are predicting a major move in LinkedIn off earnings. LinkedIn’s straddle is pricing in around a $14 move up or down off the strike price of $160 (~9%).  [...]

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Selling is a Liberating Experience

So, this (past) week and some of the prior weeks saw a bout of selling occur that has pretty much clobbered many high beta names that were huge winners in 2013.  Rotation is now on.  But the indices continue to flirt with new all time highs and some have tagged them – the Dow Industrials [...]

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Turnabout in BWP?

The market is deciding what to do today after making the big volatility crushing run to SPX 1885.52 yesterday.  I can give it a day of rest even for a hyper active bull.  The momentum drivers are a little slower today, so that might be part of it.  Lackluster employment data, of which there seems [...]

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CBOE RMC Presentation: “Rebalancing Using Options”

At the 30th Annual CBOE Risk Management Conference (RMC) this week, the topic of “Asset Allocation Rebalancing Using Options” was covered by two expert speakers – Dr. Christoph Gort, Partner, SIGLO Capital Advisors Pav Sethi, Chief Investment Officer, CEO, Gladius Investment Group The speakers covered these topics – A case study on how dynamic rebalancing [...]

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Mid-Day Market Call for 3.18.14

(Editors Note: Brian Overby sent us the TradeKing Market Call yesterday afternoon.  We’ve been concentrating on the CBOE Risk Management Conference for the last three days.  Since the S&P 500 is basically unchanged in the last 24-hours, we thought we’d share their insightful commentary) Analysis of S&P 500 from QuickTakesPro’s Michael Kahn: S&P 500 (SPX) [...]

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Volatility Symposium at CBOE this Tuesday 1/14/2014

This coming Tuesday the Bloomberg / CBOE Equity Volatility Symposium returns to Chicago for the fifth straight year.  The program will be held at the Chicago Board Options Exchange from 3:30 to 6:00 with a networking cocktail reception following three presentations. The presentation schedule begins with Chakri Cherukuri from the Quantitative Research Group at Bloomberg [...]

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Opportunity in Volatility – Trading VXX

As traders and students of the markets, we are obligated to adapt to changes in market conditions and recognize opportunities when they present themselves in order to profit. With recent changes in the market place, there has been an influx of tools that are introduced to the speculators and investors alike by financial institutions in [...]

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‘Twas the Night Before Expiration – A Holiday Tale

‘Twas the night before expiration, when all through the floor Nothing was trading, not even a Condor My trades were placed electronically with care In hopes that a market maker would soon be there Gutsy traders all snuggled in their big brass beds While visions of arbitrage played out in their heads Eileen in her [...]

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The Buffett Put Trade

Four times a year Berkshire Hathaway submits a filing with the SEC that discloses their holdings.  Most Warren Buffett watchers dig in to see what current holdings have been added to along with any new stocks that have worked their way into Berkshire Hathaway’s holdings.  I dig into the filings as well, but I’m looking [...]

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#Twitter and Other Internet IPO’s

IPO’s can generate as much excitement as a Hollywood movie premier but can sometimes disappoint too.  Not so with Twitter (TWTR).  So far it has proved to be much more than a bad Will Ferrell movie. But over time every stock has a story to tell and Twitter will too. Do you remember some of [...]

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Halloween Monsters

In the spirit of the day and lacking the resources and imagination to do something as elaborate as the Guillermo del Toro couch intro for the 2013 Treehouse of Horrors episode of The Simpsons (definitely worth a click through) I have elected instead to construct a portfolio of what I am calling the Halloween Monsters [...]

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I Have a Trading Loss, Am I a Loser?

The title is really descriptive of what traders think about themselves after posting a loss.  After all, the future is uncertain – will you ever post another winner again?  That is a rhetorical question of course, because we cannot predict the future.  But if you plan well, do your due diligence, study, focus and make [...]

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Panel on Volatility as an Asset Class at RMC Europe

The final panel discussion of the conference was moderated by Robert McGlinchey who is Managing Editor of Derivatives Intelligence and Derivatives Week.  The participants were Zoltan Eisler, Portfolio Manager for Directional Strategies at Capital Fund Management in Paris.  Dr. Christoph Gort a Partner at SIGLO Capital Advisors, and Neale Jackson who is a Portfolio Manager [...]

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Gerry Fowler Discusses Love and Panic at CBOE Risk Mangement Conference

The final day of the Risk Management conference began with Gerry Fowler who is Global Head of Equity & Derivative Strategy for BNP Paribas delivering a presentation titled Love Panic.  You know you are in for a treat when the title of a presentation sounds like a good name for a band. Love panic is [...]

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Optimizing Portfolio Hedging Strategies Discussed at RMC Europe

A discussion of Optimizing Portfolio Hedging Strategies was held with Neil Dissanayake who is a Senior Risk Manager & Trader with Milliman and Alessandro Esposito, Convertible Portfolio Manager at BlueBay Asset Management. Dissanayake began the presentation talking about the embedded optionality that exists in the portfolios of insurers.  He says most insurers have risk that [...]

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Option Selling Strategy Discussion at CBOE Risk Management Conference

Delphine Leblond-Limpalaer from Societe Generale and Scott Maidel from Russell Investments teamed up to talk about selling options and the potential volatility diversification benefits of doing so. Scott began by defining volatility saying there are several directions you can go with the definition of volatility.  It could be realized, implied, short term or long term [...]

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Paul Donovan of UBS Kicks Off the Second Day of Risk Management

Paul Donovan Managing Director, Global Economics from UBS was the keynote speaker kicking off the second day of the CBOE Risk Management Conference. Some highlights from his speech – He is projecting 3.0% GDP growth for the US in 2014 which would be the first above trend since the financial crisis. Donovan projects that tapering [...]

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The Role of Options by Dan Mikulskis

The following blog appeared on Dan Mikulskis’ Volatility Viewpoints blog site — This Tuesday I’ve got the pleasure of moderating a panel discussion at the CBOE Risk Management Conference on the subject of option usage among institutional investors. Over the last few days I’ve been thinking about how to approach this topic with the panelists, who [...]

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The SPX vs. SPY Advantage Series

Times almost up to register for a complete, in-depth webinar series, looking at SPXSM options from CBOE and the advantages of trading SPX for your income generation and risk management strategies. This three-part live webinar series, The SPXSM vs. SPY Advantage Series, kicks off tonight, September 19th, with a free webinar at 6:00pm CDT, with [...]

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NYC Reps Interested in Rate Volatility; VXTN up 83% Since April

This week CBOE representatives had several meetings in New York City with representatives of several large financial services firms. Firm representatives told CBOE that many of their clients have expressed increased interest in interest rate volatility over the past few months.  CBOE now offers two volatility indexes related to interest rate volatility – CBOE/CBOT 10-year [...]

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What’s New In Weeklys? – 9/11/2013

There is not much new with Weeklys since next week is expiration week.  For those new to short dated options you should know that seven (trading) day options are not listed the week before expiration week.  It would be a fairly redundant exercise since there are already options that expire next week.  However there are [...]