Finally the Greek elections have come out this weekend and the World Europe is saved. Well maybe not but the markets finally got over another speed bump. Last week we saw a rise in volatility as insurance was being bought up to protect against weekend news. We noticed several correlation [...]
The VIX (fear gauge) and SPX (S&P 500) correlation is a simple one. If the market is down and the VIX is also down this is a good bullish sign. If the market is up and the VIX is up, like we saw yesterday, this is a good bearish [...]
Last week was the best week in 2012 for the markets. We laid out the bull case last week and it played out perfectly, but where do we go now? Again I laid out the bull, bear, and neutral case going forward. We are still caught in a downtrend but [...]
This is how I spend my Sunday nights going through the market and the different ways it can play out. If you prepare and get your mental game ready then you can face anything the market will throw out at you. In this video I laid out the bear case, [...]
This market has been on steady decline since we’ve moved into May. This is where the typical adage of ‘Sell in May, Go Away’ comes in. The market has been going through a bend but don’t break mentality. Now something like that is usually saved for the football field, but [...]
Yikes! Netflix just can’t stay out of the news. At least today it was a good announcement about their expansion into the UK. By now it is no surprise that Netflix has taking a bad bounce and dropped over half of its value. Since then it has been a rollercoaster [...]
Economic Reports Due out (Times are EST): No Major Economic Data Premarket Update (Updated 8am eastern): Futures are positive this morning European markets are mixed with Britian up 0.63%, Germany down 0.02%, and France up 0.51% Asian markets are also mixed with China up 0.19%, Japan down 0.20%, and Hong [...]
Economic Reports Due out (Times are EST): Case-Shiller Index due at 9:00am ET Consumer Confidence Index and Richmond Fed Index to report at 10:00am ET Dallas Fed Manufacturing Index is due at 10:30am ET Premarket Update (Updated 8am eastern): Futures are slightly negative to start the morning off Europe has [...]
Trade Review on SPY 125/120 Vertical SpreadSo we have a trader that was bearish on the market and more particularly the SPY. Using the world of options he had several plays he could choose from to play the market lower. He decided to go with a vertical spread over a [...]
Welcome to the world of Options! This is a very scary world with many twist and turns to help you lose your way. Options are wonderful tools once you harness the knowledge. Unfortunately they can be deadly when used without caution. Don’t just rush out there and put your [...]
The US options exchange started with the founding of the CBOE (Chicago Board Options Exchange) in 1973. At the beginning there were a total of 16 equities that had only call options. In 1977 they began to trade put options. There are now over 5 different exchanges actively trading options. [...]
An option gives the buyer the right to buy or sell the underlying at a specified price and time. At the same time, the seller has the obligation to take the opposite side and fulfill the option upon exercise. That means that the buyer can choose if they want to [...]
