Selling Across the Board?
TheoTraders look for risk parameters on down days. In this weekend update let's look closer at the broad based sell off, bonds, and VVIX. What does this all mean for the week ahead?
Is The Risk Greater Than the Market is Showing?
TheoTraders look beyond the noise of the market into what can be called second level thinking. If the markets are priced to efficiently and volatility drop to zero is this the safest time or the most riskiest time to buy? The casual thinker may say the safest. A TheoTrader would say the riskiest. A TheoTrader…
Trade ideas for the week
TheoTraders look for opportunities in the current market. You never want to stay stuck in one trading mindset. A lot of traders are talking about selling weekly premium. However, TheoTraders know that implied volatility is not correlating with the intraday moves in the market. TheoTraders, let's take a look at the types of trades you…
Trades that put the odds in your favor
Trades that put the odds in your favor "May the odds be ever in your favor" Hunger Games Each week TheoTraders look for trades with an edge. TheoTraders want to find trades that put the odds in your favor. In this weekend edition find out the types of trades that you want to take in…
Nasdaq Warning of Pending Volatility
Nasdaq Warning of Pending Volatility Nasdaq is showing warning signs of pending volatility for the rest of the market. Here's what to expect in the week ahead.
Is Stock Price Volatility on the Rise?
Is Stock Price Volatility on the Rise? According to the media stock price volatility was on the rise. Is that true? Well, the answer is yes and no. Let's separate fact vs. fiction in this weekends edition.
Where is the Implied Volatility Risk
Where is the Implied Volatility Risk Where does the market see the higher implied volatility risk? It's surprising to see that despite earnings announcements next week and a FOMC meeting that the SPX implied volatility remains low. You look at other markets like the XLF, the ETF of the financials and QQQ, the Nasdaq 100…
Trading Google Options on Earnings
Trading Google Options on Earnings Google the next big company to report earning on Thursday after the close. Trading Google options on the earnings announcement can be tricky. Let's first talk about which stock symbol to trade earnings on. Then let's look at a few possible options strategies you may want to utilize tomorrow.
OPEC Meeting April 2016
OPEC Meeting April 2016 With an unscheduled OPEC meeting in April 2016 let's take a look at what the stock market expects to come out of the meeting. Although implied volatility is low in the SPX there still seems to be a lot of concern in the financial sector. Many financials lowered there expectations and…
Low Implied Volatility Strategy
Low Implied Volatility Strategy When implied volatility is low, we need to use a strategy that will benefit from an increase in volatility. We usually like to sell implied volatility in order to give us a statistical edge in the markets. However, when implied volatility is essentially zero - what do you do? Let's find…