Category Archives: Trade Ideas

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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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Was VXX Invited To The Party?

One too many mediocre earnings reports sent stocks swooning, coupled with a “tough love” shout by one of the Fed bigwigs.  The simple reason is that stocks have run and the reasons to keep buying them are less compelling.  The big slowdown from the winter deep freeze keeps showing up in company earnings as many [...]

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Who Wants to Buy The Juice?

The market drifts lower today and nobody seemed to care.  It is only May 14th and Summer is still a month away officially so this is a bizarre kind of complacency, or is it?  The volatility futures did have a little pullback priced in with the VIX trading near 12%.  The premium in the front [...]

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BigTrends 2014 Kentucky Derby Picks & Analysis

Editors Note: Tomorrow afternoon, the 140th Kentucky Derby will take place at Churchill Downs.  For the last three years Price Headley and Moby Waller of BigTrends.com has shared their Kentucky Derby picks with the CBOE Option Hub.  Price lives two furlongs from the backstretch, some think he could be a “horse-whisperer”.  The Derby sneaks up [...]

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Weekend Review – 3/23/2014

Barron’s – Steven Sears column was very VIX centric discussing the impact that the Ukraine situation had on VIX futures volume.  Specifically he was discussing the increase in VIX futures trading volume that occurred during the wee hours of the morning in the United States.  Despite the US markets not being open, VIX futures volume [...]

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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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Trading Volatility Across Asset Classes Discussion at RMC

Puneet Kohli from the Healthcare of Ontario Pension Plan and James Hosker from Societe Generale contributed to a presentation titled Trading Volatility Across Asset Classes. Kohli began the presentation discussing volatility noting that it is mean reverting, it is bounded, and it tends to have low correlations relative to other asset classes.  He considers volatility [...]

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Weekend Review – 3/9/2014

The front page of Barron’s addresses one of the ‘hot’ areas of the market, 3-D printing.  It is noted that the stocks in this space have been stellar performers, but may be ahead of the fundamentals.  Specific stocks discussed include 3D Systems (DDD – 67.31), Stratasys (SSYS – 114.50), ExOne (XONE – 44.92), and Voxeljet [...]

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Call “Stupid” in AVNR

For the second time this week, we see heavy call buying in a pharmaceutical name. Avanir Pharmaceuticals (Nasdaq: AVNR, $3.97, up $0.13) specializes in developing medication for the treatment of neurological disorders including Alzheimer’s and Parkinson’s, and has several products in Phases II and III of FDA testing.

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Weekend Review – 2/23/2014

Barron’s – Steven Sears column leads off with a topic that covers two big area of interest for me, retailers and earnings.  I love studying how stocks react to earnings relative to what the option market is expecting and in my buy side days I covered the retailing industry.   Specifically he discusses earnings for Target [...]

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Is the Retail Sector for Sale?

Stocks are off to a muted start this year as the record highs and so-so earnings reports are at loggerheads.  For all the Iron Condor traders, the market is finally being nice to them and that could be the position for 2014.  If the first 3 weeks is any indication, trade will be of the [...]

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How to Prepare for the New Year

Calendar markers are important reference points.  Some evaluate their trades monthly, weekly or even daily using a journal.  But, they do not define our actions rather they are a time to step back and evaluate ourselves, our actions and inaction.  The challenge is can we change our behavior to become better.  As traders, we are [...]

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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 [...]