Maybe a day early. Interesting VIX today, with a high and low range of 9 points. When it has happened before, it was at a selling climax. link to article/charts
http://whatstrading.com/vix-and-v-shapes/
When IV is high, you can sell credit spreads instead of straight puts or butterfly spreads. YOu might look at the SKF, which moves inverse to the financials but by 2x as much.
careful out there.
I have, the TY, but don't anymore. I usually stop when the pits close at 3:00 ET. Too thin, not enough movement, but if you like trding low volatility, it might be for you.
Some hedge funds use condors. More of them use butterflies and many of the butterflies are directional, meaning they make bests profits when the stock moves into a certain range.
I don't know about optionmonster InsideOptions. I'm sure there is some good stuff in there because these guys are...
SPX is the most actively traded index contract.
However, some etfs, (QQQQ, IWM, and SPY) see more volume. Since they settle like stock options, you might take a look at those too.
this is way too low for ETFC. It would never be this low unless it was being acquired or for some reason the stock simply stopped moving. the first numbers seem more accurate. might have been a glitch in IB's system.
I would strongly encourage you to learn more before you trade optoins. Also, your broker might limit the trading strategies available if you don't have any experience. You will need to submit an options approval form to begin trading options.
Options strategies really can vary in terms of...
you would think on a day when the Dow rallies 300 points an IPO would do a little better. still a poor IPO market I guess. Or, maybe this company just isn't a good investment. I don't know, maybe one or both. here's an article about it
http://www.ecommercetimes.com/rsstory/64102.html
historical volatility is simply a measure of past volatility, it's the annualized standard deviatoin. you can use other indicators like Wilder's Average True Range to get a general sense. you can find atr and standard deviation on stockcharts. com. if you want SV, also check livevol.com or...
There's the eui, fxe, and xde. check the products specs though, because some might be inverse. some are indexes. i think only the fxe is an ETF. you can always trade puts or calls and get negative correlation., good luck.
did you check DUG? There's DIG and then the ultra oil and gas, Symbol: DUG.
But I guess you're looking for USO, but ultra short. I don't think so because its a commodity fund. I could be wrong though, check the ETF section at amex.com
it's not that expensive. ha
interesting post on WhatsTrading.com before the earnings:
"the options market is priced for some volatility (possible earnings gap move of 11.2 percent) and this is probably due to two factors: 1) WFMI has missed analyst estimates during the three previous...
i think a lot of people are looking for the market to react to stocks and so it doesn't. i find it very difficult to time entries based on what the stock market is doing. my better trades come when i just look at the bond chart and forget about stocks. it's been so choppy i moved to the...
since Cisco's business is heavily influenced by IT spending, it is considered a bellwether for the technology sector. i don't think its earnings matter to say, McDonalds or Walmart, but it does for chip, software, computer, etc companeis.
weird action today. seems like everything was coming together to sink bonds.
I was kicking myself when I didn't get short after jobs data, but by the end of the day I was glad I didn't. No clue where that rally came from.
I agree that tone seems to support upside. Nothing tomorrow...
I would say that the most volatile markets are the ones that will require the most margin. Look for the ones that have seen a recent increase in margin requirements and those are probably the ones seein increasing volatility.
There was an interesting spike in put volume Thursday. I agree, must have been some leaks or something. timing is too coincidental
http://seekingalpha.com/article/87224-whats-the-matter-with-merrill-lynch
it depends on what you think the stock will do. if you want more juice and think it will hold above $125 hold the short put longer. It will lose value a lot faster than the december. Time decay is fastest in the front month. There's no reason to close it unless you think the stock is going to...