Category Archives: Strategy

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NFLX Earnings Trade Idea

Netflix, Inc. [Nasdaq: NFLX, $342, up $4.66] is scheduled to release its fourth quarter earnings report today following the close of the market session. Consensus analyst estimates are forecasting earnings per share of $0.45 on overall revenues of $1.48 billion. The same quarter one year prior (Q4 2013) saw EPS of $0.66 on $1.18 billion […]

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Back to the Future: Play Oil with USO ETF Options

Crude oil’s precipitous drop from it’s June highs has yet to show signs of abetting, with U.S. Oil benchmark West Texas Intermediate (WTI) down over 3% again today following Monday’s downside move. Now trading below $50, oil has moved to a new five and half year low, a move estimated to save the average American […]

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Skipping Around: Of Jobs, Oil and Markets

Today, we’ll take a look at how jobs, oil and market volatility are playing a role in the market environment. A Solid Jobs Report:  But You Can’t Please Everyone Last week’s job number took many by surprise.  What a great report it was, 321K jobs created based on the latest survey, previous reports revised upward.  […]

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Russell Investments Small Cap Compendium

Russell Investments just released the inaugural edition Small Cap Compendium which going forward will be a quarterly publication. The Small Cap Compendium brings together a variety of market participants that focus on the small cap sector. I was honored to be asked to contribute to this first edition with a discussion of the CBOE Russell 2000 Volatility […]

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Intel (INTC) Bullish Strategy Into Earnings

(Editors Note: We received this from John Voorheis, Keene on the Market, mid-day today before INTC’s earnings after the close today.  Enjoy). Intel Corporation (Nasdaq: INTC, 31.97) is scheduled to report earnings after the closing bell on Tuesday.  Consensus analyst forecast $14.45 Billion of revenue with  EPS of $0.65 (last quarter’s EPS beat by nearly […]

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Day 3 CBOE RMC Europe Recap

The final day of the 2014 edition of CBOE RMC Europe began with an excellent keynote presentation from Pete Clarke the Global Head of Equity Derivatives Strategy at UBS. He spoke on Global Equity Derivatives Trading Themes – Dislocations and Opportunities for a Diverse Investor Base. He discussed several trading themes but did end with […]

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Correlation and Dispersion Trading Discussion at CBOE RMC Conference

One of the final sessions of the day teamed up Daniel Danon, Senior Vice President, Portfolio Management and Structuring at Assenagon Asset Management and Tim Edwards, Director of Index Investment Strategy at S&P Dow Jones Indices. Their presentation was titled Correlation and Dispersion: What They Mean and How to Trading Them. Tim Edwards began the […]

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Management of Asian and Cliquet Option Exposure at CBOE RMC

The speakers for this session were Pin Chung Chief Financial Officer and Chief Investment Officer, R+V International Business Services Limited and Dr. Rachid Lassoued, Head of Financial Engineering from Bloomberg. The session title was Management of Asian and Cliquet Option Exposures for Insurance Companies. Dr. Chung began the session by reviewing Asian and Cliquet options. […]

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Asset Allocation Rebalancing Using Short Options

Dr. Christoph Gort, Partner, SIGLO Capital Advisors and Pav Sethi, Chief Investment Officer, CEO, Gladius Investment Group, teamed up for the “Asset Allocation Rebalancing Using Short Options” session on Thursday afternoon.  In the presentation, they highlighted results from an empirical study on the use of SPX options to implement allocation shifts with market moves.  Interestingly, […]

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Volatility of Volatility Discussion at CBOE RMC Europe

Abhinandan Deb from Bank of America Merrill Lynch and Jean-Gabriel Prince from BlackRock split duties discussing the Volatility of Volatility. Deb led things off noting that we need to care about the volatility of volatility as we continue to see robust growth in volatility related option trading volumes and open interest. He showed several examples […]

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Panel on Trends in Institutional Options and Volatility Product Usage

Today at the CBOE RMC Europe conference Robert McGlinchey, Director and Co-founder of EQDerivatives led a lively panel discussion on Trends in Institutional Options and Volatility Product Usage. Robert introduced the panelists which represent US and European institutions as well as a variety of types of firms – Jean-Francois Bacmann, Portfolio Manager and Head of Volatility Strategies, […]

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Emerging Markets Investing Discussed at CBOE RMC Europe

The keynote speaker for today’s CBOE RMC Europe conference was David Hauner who is the Head of EEMEA Cross-Asset Strategy and Economics at Bank of America Merrill Lynch. His presentation was titled Emerging Markets: Attractive Investment of Global Systemic Risk? I found this particularly interesting as I closely monitor the CBOE Emerging Markets ETF Volatility […]

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This Week in CBOE Strategy Indexes – 8/15/2014

This past Friday was expiration date for old school standard option contracts. Expiration also means it was the day to retire August contracts and roll into September SPX option positions in the various strategy indexes quoted by CBOE. August SPX settlement came in at 1963.31. BXM was short the SPX Aug 1975 Call and BXY […]

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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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Next Week in Weeklys

The summer doldrums have taken over and there is very little in the way of news related to Weeklys. There’s one new name and one stock reporting earnings next week. New on the list is Teva Pharmaceutical Industries Limited (TEVA) which is mostly known as a generic pharmaceutical company. On the earnings front the only […]

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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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Know the Macro Before you Attack the Micro

There is just so much information to understand as we journey through our investment/trading adventure.  One of my chief macro concerns is the Fed and where policy stands.  Geopolitical issues must always be considered and nothing is more important right now than how Russia/Ukraine are effecting sentiment.  Nobody really knows how this is going to […]